Wall Street: Mom-and-pop tax shops in peril.
John Hewitt, the founder of Jackson Hewitt and now CEO of Liberty Tax, expects a huge shakeout because of the new IRS requirement for paid tax-return preparers to register with the government.
Market share for the two largest tax chains, H&R Block and Jackson Hewitt, has eroded by about 9% in the past four years as do-it-yourself online tax software gained ground. TurboTax, for example, grew by about 121%. But the new IRS PTIN rules may slow the decline by forcing out mom-and-pop paid preparers, according to Wall Street analysts.
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