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4 MARKET ANALYSIS

4.1 MARKET ANALYSIS SUMMARY

A start-up business in the tax preparation industry has one major advantage. It is required by federal law
to submit an income tax return. Tax preparation is big business. Over 38,000 firms operated in the field

last year generating $11 billion in revenue. The IRS processed about 82 million professionally prepared

tax returns last year, and that number is expected to increase. According to an industry report, the
profitability of tax preparation, bookkeeping, and payroll services was second only to privately held oil

and gas extraction companies. For the most part tax preparation businesses are small. 37% are operated

by a single person. 53% are operated by less than ten people. There were over 128,000 tax preparers in
the field last year, and approximately 144 million individuals filed tax returns last year. That leaves

plenty of tax returns to go around.

4.1.1 Global Tax Preparation Services Market to Reach US$13.9 Billion by the Year 2027

Amid the COVID-19 crisis, the global market for Tax Preparation Services estimated at US$11.3 Billion
in the year 2020, is projected to reach a revised size of US$13.9 Billion by 2027, growing at a CAGR of

2.9% over the analysis period 2020-2027. Tax Compilation Services, one of the segments analyzed in

the report, is projected to grow at a 2.4% CAGR to reach US$6 Billion by the end of the analysis period.
After an early analysis of the business implications of the pandemic and its induced economic crisis,
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