Quick: when you hear “1040 Form,” what do you imagine of?
Taxes, yes, IRS, yes, April 15th, yes – but anything else?
Money? Yes, you’re getting warmer….
More particularly, “money” just as “investment,” as in “stock market.” As in companies like H&R Block (HRB) and Jackson-Hewlitt (JTX).
State the 1040 Tax Form and if you think really hard or lengthy enough, you’ll ultimately give thought to the tax preparation industry. So, how about it? Well, how about the fact that it’s an excellent line of business to invest your money in? After all, there’s a captive audience included, and even though profits are seasonal it’s guaranteed every year since practically everyone has to file a return!
A real winner, right?
Not necessarily. Not anymore.
Like just about everything else in our world, computers have altered things considerably.
Tax preparation software carries on to be popular, and its use is even developing now that web-based services are available which require no installation procedures on one’s computer. In fact, many of these web-based services are frequently free – that’s right, zero cost!
It’s not because the businesses providing them are doing it out of any altruistic impulses, obviously. The truth is, far from it. For the IRS was about to take benefit of modern technology – as a final point – and offer online tax preparation and filing to all for free, but the industry lobbied intensely in opposition to the idea. It would, after all, put them out of business. And while jobs are crucial, so is serving the public good. And although jobs definitely fall within the description of a public good, so is making government more available.
So, where to start?
A steal was brokered which lead to online tax preparation software being 100 % free for those making below twenty-five thousand dollars a year roughly. In exchange, the government contracted to not offer their own free preparation and filing service at the IRS website!
Now back to stocks.
Having preserved fee-based online preparation and filing services, the companies offering them are in position to continue generating money – indeed, to go on increasing their profits as progressively more people log onto the web to do their taxes. This puts those running brick-and-mortar operations, such as H&R Block and Jackson-Hewlitt, on the same road the dinosaurs found themselves, the fast track to annihilation.
So, how to proceed?
The writing’s on the wall. It’s only a matter of time prior to hardly anyone will do tax preparation and filing offline! The truth that some of these forms are absolutely ridiculous and a waste of time, let alone money which is also quite as important, but there are actually counter forms to retaliate against time- wasting forms which virtually do totally nothing with no increases in any way, that is, based on what the cause may be. Makes sense right? Well in a nutshell let’s just say now they have much more proper forms which are correct and accounts instantly to the cause of the form rather than a general form which follows up an appointment to illustrate to the guy or woman what the actual reason is in filling up that form…maybe more. Makes more sense now doesn’t it?