Quick: when you hear “1040 Form,” what do you presume of?
Taxes, yes, IRS, yes, April 15th, yes – but anything else?
Dollars? Yes, you’re getting warmer….
More specifically, “money” such as “investment,” as in “stock market.” As in companies like H&R Block (HRB) and Jackson-Hewlitt (JTX).
Talk about the Form 1040 and if you think really hard or long enough, you’ll gradually think of the tax preparation industry. So, how about it? Well, how about the truth that it’s a great line of company to invest your cash in? In fact, there’s a captive audience involved, and although profits are seasonal it’s guaranteed every year since virtually everyone has to file a return!
A actual winner, right?
Not really. Not anymore.
Like just about everything else in our world, computers have changed things drastically.
Tax preparation software carries on to be popular, and its usage is even growing now that web-based services are present which consist of no installation procedures on one’s computer. The truth is, many of these web-based services are frequently free – that’s right, complimentary!
It’s not because the businesses offering them are doing it out of any altruistic desires, of course. In fact, far from it. For the IRS was about to take advantage of modern technology – ultimately – and offer online tax preparation and filing to all for free, but the industry lobbied intensely against the idea. It would, after all, put them out of business. And while jobs are important, so is serving the public good. And although jobs definitely fall within the description of a public good, so is making government more out there.
So, what to do?
A steal was brokered which lead to online tax preparation software being free for those making under twenty-five thousand dollars a year roughly. In exchange, the government have agreed to not offer their own free preparation and filing service at the IRS website!
Now back to stocks.
Having saved fee-based online preparation and filing services, the companies offering them are in position to continue generating money – certainly, to keep on increasing their profits as more and 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 disintegration.
So, what to do?
The writing’s on the wall. It’s only a matter of time just before hardly anyone will do tax preparation and filing offline! The truth that some of these forms are entirely ridiculous and a waste of time, as well as money which is also equally as important, but there are actually counter forms to retaliate against time- wasting forms which virtually do totally nothing with no increases whatsoever, that is, relying 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 straight away to the cause of the form rather than a general form which follows up an appointment to format to the guy or woman what the actual reason is in filling up that form…maybe more. Makes more sense now doesn’t it?