This well-established company provides employers and financial institutions with the ability to prepare and file the full range of IRS information returns and annual wage reports documenting payments to recipients, as well as Social Security Administration (SSA) and Affordable Care Act (ACA) returns. It typically serves 1,900-2,000 customers annually, including Fortune 1000 and smaller corporations, colleges and universities, and federal/state/municipal agencies. Customers can distribute completed tax forms to recipients or have the company print and mail them to recipients or e-file them. As an IRS-approved E-filing provider, the company has benefited from an IRS policy that took effect in 2024. This policy reduces the number of companies that must e-file reports from those that file at least 250 reports to those filing at least 10.

The software provides many valuable features, including the ability to:
• Validate taxpayer identification numbers
• Flag errors prior to filing returns
• Quickly and easily correct errors after filing
• File combined federal/state returns
• Electronically file state wage reports

Because customers can purchase only the services they need, the company has a significant pricing advantage over competitors that bundle multiple services. With virtually no advertising, growth has been driven primarily by repeat and referral patronage, reflecting the company’s robust software capabilities and stellar support, which has enabled many customers to avoid substantial interest and penalties. In the past few years, the company has acquired many new customers because their previous vendors discontinued valuable services.

Because the company provides a compliance—vs. a discretionary—service, it is highly resistant to economic downturns. An accounting firm would be an ideal buyer for two key reasons:
• It has the potential to greatly increase revenue from existing clients.
• It would attract new clients that value the convenience of having a single company address both their tax preparation and filing needs.