The Top Tax Firms
By and large, it was not a great year for tax firms. Two of the three biggest tax prep chains, H&R Block and Jackson Hewitt, reported noteworthy declines in revenue, citing problems with refund anticipation loans and sustained unemployment among their core client bases. (That said, the other major chain, Liberty Tax, continued its relentless growth, and surpassed Jackson Hewitt for the first time to become the No. 2 chain in the country.) For firms that provide a wider range of tax services, the results were mixed, a combination of mostly minor declines in revenue and the odd slight uptick with the notable exception of Texas-based tax services firm Ryan, which managed growth of over 10 percent, aided, in part, by its expertise in international tax issues.
1. H&R Block
The largest tax prep chain in the country, H&R Block, based in Kansas City, Mo., earned over $2.9 billion in revenue from tax prep last year, according to public company reports. The total revenue includes revenue from Block's RSM McGladrey division, with the tax fee split reported as a dollar amount. The percentage of Block's revenue from tax work is about 77 percent. The company's total revenue is $3.87 billion. Revenue declined last year by 5.23 percent. The company, headed by CEO Alan Bennett, has over 11,000 offices.