From this week’s Research Update newsletter. For the rest of the newsletter, click here.
We’re still licking our wounds and counting our losses from the worst tax season ever. It may mark a watershed, as well, in long-term trends.
CPA Trendlines has found meaningful signs that the tax prep industry is losing market share. Now comes Hitendra Patil, COO at Pransform Inc., an accounting technology developer, who has crunched some CPA Trendlines data. Noting the IRS received 1.9 million more e-filed returns this year, and multiplying by the $246 price of a typical itemized 1040 with a Schedule A and a state return, you get $467 million. That’s millions that didn’t go to accountants.
Many accountants today must feel today like boxer Max Schmeling’s manager in 1932 when the heavyweight title bout went the wrong way: “We wuz robbed!”
– Rick Telberg
President / CEO
P.S.: If you plan to be in Las Vegas for the AICPA Practitioners Symposium, please join us Sunday, 2-4 p.m. for a SevenKeys CPA workshop. Save $100 on registration with code “UBZ.”
CORRECTION: This post corrects two errors in the newsletter version of this article, which reported the dollar figure in billions instead of millions and rounded it incorrectly. Hitendra’s math was sound. The typos are ours. Thank you Karen, Michael, Ed, and the many more who so graciously brought this to my attention.
One Response to “Tax Season 2013: “We Wuz Robbed!””
Cheryl Biondolillo
But who is going to be around when the notices start coming for the errors and information omitted on those returns?