No Crystal Ball Needed Here

A few months ago, an Intuit advertising (ad) campaign raised concerns from National Association of Enrolled Agents (NAEA) members and other tax professionals. The tax professional community was rightfully upset with the message and the tone of the campaign and the NAEA, along with other tax professional groups, was able to successfully advocate against the campaign. But, putting that issue aside for a moment, it also highlighted a bigger trend that the NAEA and all enrolled agents need to be aware of.

Billion-dollar organizations do lots of market research and rarely launch new products or services if they don’t see the revenue potential. In this case, the company clearly sees a market in which taxpayers don’t want to do-it-yourself (DIY) their tax returns but do want an inexpensive option. In fact, the company’s CEO in an interview explicitly says their “largest growth will come from disrupting what today is the assisted category.” In other words, the taxpayers who are already paying to have their tax returns completed.

This is just one example of how tax preparation is changing and evolving.

Minimum standards could also be the future for all tax preparers. Those standards will shift the tax preparer market even more. It can push unscrupulous and incompetent preparers out of the market, and it can raise the caliber of the tax preparation industry. But it will also drive some taxpayers towards inexpensive options offered by larger tax preparation companies, and other consumers to enrolled agents and other credentialed tax professionals.

Enrolled agents need to be ready to compete in this market. Firms that are only offering individual tax return services are the ones most at risk. There are, however, many ways for practitioners and firms to grow and thrive in this changing environment: diversifying your services, expanding your client base, and ensuring that your fees are competitive and reflective of the experience and expertise you are providing your clients. No matter if you’re new to the profession or starting your 25th tax season, diversifying your client services will create year-round income opportunities and provide added value for your clients: expanded services like tax and financial planning for individuals, small business tax preparation and other services like bookkeeping and payroll management, and, of course, the specialized and growing industry of tax representation.

That last one is a huge opportunity for all enrolled agents that aren’t already doing it. While many members expressed their concern that the ad campaign mentioned above would hurt their businesses, many others felt that they would actually grow their business because of the potential for more taxpayers looking for representation services. (See advertisement on page 15 to learn more about representation training and the National Tax Practice Institute® (NTPI) at the NAEA 2025 Tax Summit.)

Sometimes this may feel very overwhelming and maybe you don’t even know where to start. But the NAEA is here and will continue to help our members navigate these developments in the marketplace and ensure that the enrolled agent remains a respected and sought-after tax professional in this ever-changing environment.