Registration

[Golden Rocket]

For you old-timers, thanks to TMI, the "Golden Rocket" rides again!!

Practically every industry that has registration has the complaint that the big entities in that industry defray regulatory enforcement either through their sheer size, lawyers, political connections, etc. And that in some industries, cabinet positions and industry leaders are just revolving doors. A scenario may be presented where drug giant E I Lilly is never bothered with bureaucrats while the FDA audits and fines small companies who are trying to develop more competitively priced drug products.

Some time ago, a statement from Mssr. Hewitt (formerly of Jackson/Hewitt now of Liberty) predicted that the large tax prep firms would squeeze out the "mom and pop" firms. Does anyone see this in their crystal ball?
Will IRS regulators invade small tax prep offices with a passion while allowing HRB JH and Liberty to continue unimpeded?

[DaveO]

Some good questions there GR. I don’t worry about competition from the big guys but regulation from the Feds is more worrisome. I think we have more to lose to the self preparer, at least until they mess up and really need our help. If we saw what appeared to be selective enforcement I think a few letters to our congress persons would focus an unpleasant light on such activity.

[taxmandan]

The chains & DIY software are already squeezing the mom & pop (i.e. us) out of the simple uncomplicated tax returns. We need to focus on the clients with Sch C, E, and small entities if we want to stay in the tax business. Those clients are more attuned to the value of our service than the simple 1040/W-2 customers and that's where the future is for us. My office has migrated that direction and we now do 20% fewer returns than four years ago for the same amount of $$. Higher fees per return, fewer returns. Not really less work, just a change in purpose. IMO