Economy’s effect on tax filing methods

February 27, 2010

The struggling economy apparently is affecting tax filing. And I'm not just talking about individuals having trouble paying what they owe Uncle Sam or their state tax collectors.

The actual business of filing seems to be sensitive to these tough fiscal circumstances, with it looking like hard times help one tax-related sector, but hurt another.

Last week, a market analyst with Oppenheimer told his clients that in this soft economy, worried consumers have looked for ways to trim costs, including preparing their taxes themselves instead of paying a fee to have someone
do it for them.

The evidence of such a shift?

Intuit's latest report on its TurboTax
product showed growth for the software of more than 11 percent compared with a year ago.

Meanwhile, Kansas City-based H&R Block announced that its preliminary tax season numbers ending Feb. 15 showed same-office tax returns prepared in retail operations dropped 5.6 percent from the same period in 2009. Block's total number of tax returns prepared dropped 6.3 percent year-over-year.

So do these two company earnings reports really mean that folks are truly trading paid tax preparers for self-preparation options?

It will take more than one set of
numbers to reach a solid conclusion. In fact, just a few weeks ago a survey found that more folks are turning to tax pros for tax help.

But these latest Wall Street figures do indicate a trend worth watching by
taxpayers, tax preparers and investors with shares in tax sector businesses.

Take our poll: The early tax-filing filing pattern reports
raise, as usual, even more questions.

Is the IRS' own Free File program
contributing to this trend?

As the April 15 filing deadline gets closer
will folks who've been putting off their taxes decide they need personal tax pro help?

While decidedly unscientific, let's see if Don't Mess With Taxes readers can add some more fuel to the filing method fire via this short poll:

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Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Credits/Deductions

Filing and Paying Taxes

Tax Brackets/Inflation

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