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Complicated Tax Laws Mean Tax Franchises Boom

Written by: Michael Hemenway

Article Overview: Franchises that offer tax-related services may seem like a seasonal business, but it's a category that's booming, thanks to the complicated US tax code.

Complicated Tax Laws Mean Tax Franchises Boom

One of the most promising and rapidly emerging franchising business areas nowadays is the tax services industry. There are a number of reasons behind the fast development of this franchising sector.

Face it, as long as people are going to make money, they will have to pay taxes on it. With the Tax Reform Act of 1997, a time line mandating e-filing of 80% of all tax-returns was introduced. That opened up the floodgates for the fast-rising tax-services franchising industry. It lessened the burden of filing the tax returns on the tax payers. Now, all they have to do is contact the nearest tax-services providers and let them handle their accounts.

It has been estimated that almost 60% of over 180 million taxpayers engage the professional tax services companies in order to file their tax return. The IRS is expecting this number to increase by 1.5% in the year 2008. The main reason why people resort to theses tax-services companies is that the tax laws of the United States are very complicated. They constantly change and it is not possible for a common man to keep abreast with the latest guidelines of IRS. As a result, they end up paying billions of money, which is more than what they are supposed to! It has been mentioned in some recent statistics that as many as 75% of the taxpayers overpay. But when they take help of the tax-services franchises, they are sure of paying the right amount of tax, neither more nor less.

With so many taxpayers looking for professional supports, the number of CPAs, tax lawyers and other traditional tax consultants are falling short. That is why the franchising sector of tax-services is growing so well. The established players such as Jackson Hewitt Tax Service, Liberty Tax Service and Roni Deutch are already well-known for their sheer professionalism in the market. These franchisors have been in business for long and they know the common mistakes that even professionals sometimes make. They train their franchisees to avoid that and as a result, people’s trust in their ability is growing with each passing year. Hence, it is of no wonder that more than 97% franchise tax-service companies remain in business even after one year of opening, compared to 62% of independent tax-service providers.

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Article Tags: business areas, common man, cpas, e filing, floodgates, franchising business, franchisors, irs, jackson hewitt tax, jackson hewitt tax service, liberty tax service, professional supports, professional tax services, roni deutch, services providers, tax consultants, tax lawyers, tax payers, tax reform act, tax reform act of 1997



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