Analysis
NAICS 541213 is the 2022 national industry for tax preparation services, part of 54121 (Accounting, Tax Preparation, Bookkeeping, and Payroll Services). Census lists 3 example activities under it in the official index.
County Business Patterns counts 28,762 US establishments in this code in 2023, employing 133,868 people at an average annual payroll of $24,908 per employee (2nd percentile of national industries). 69% of the establishments have fewer than five employees, which marks it as a small-business industry.
Census lists 5 related activities that belong elsewhere, most often in 541211, 541214, 541219 and 522320. Businesses that do several things are classified by their primary activity, the one that generates the most value, so check those boundaries before settling on this code.
Its index entries, the activities Census uses to assign businesses to this code, include income tax compilation services, income tax return preparation services and tax return preparation services.
Between 2018 and 2023 the number of establishments fell 7% and employment fell 17%. The 2018 count used NAICS 2017, so part of a large move can come from codes being redefined rather than from businesses opening or closing.
For example, businesses of CPAs are classified in 541211 (Offices of Certified Public Accountants) instead.
Official definition
This U.S. industry comprises establishments (except offices of CPAs) engaged in providing tax return preparation services without also providing accounting, bookkeeping, billing, or payroll processing services. Basic knowledge of tax law and filing requirements is required.
Source: US Census Bureau, NAICS 2022 Manual.
Not this code if…
| The business mainly does | Use instead |
|---|---|
| Establishments of CPAs | 541211 Offices of Certified Public Accountants |
| Establishments of non-CPAs providing payroll processing services along with tax return preparation services | 541214 Payroll Services |
| Establishments of non-CPAs providing accounting, bookkeeping, or billing services along with tax return preparation services | 541219 Other Accounting Services |
| Processing financial transactions (except central bank) | 522320 Financial Transactions Processing, Reserve, and Clearinghouse Activities |
| Providing data processing services (except payroll processing services and financial transaction processing services) at their own facility for others | 518210 Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services |
Index entries (3)
- Income tax compilation services
- Income tax return preparation services
- Tax return preparation services