NAICS UNIVERSITY · Free research for insurance agents
Tax Preparation Services
NAICS 541213 · United States · 2022 edition
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.
Start with the work promised to the client.
For Tax Preparation Services, clarify the services, contracts and consequences of an error. Review professional liability (e&o), cyber liability and data privacy, premises liability. Confirm which professional activities and additional services the proposed coverage actually addresses.
Questions to ask
- What mix of returns does the office prepare — primarily individual 1040s, or also business returns (partnerships, S-corps, corporations)?
- Are preparers credentialed (CPAs, enrolled agents, Annual Filing Season Program participants) or uncredentialed staff?
- Does the office operate year-round or primarily during tax season, and how many returns are prepared annually?
- What systems are used to collect, store, and transmit client documents — cloud-based software, local servers, or paper files?
- Does the business offer any ancillary financial services — refund anticipation loans, financial planning, payroll, or bookkeeping?
- Have there been any prior E&O claims, client complaints, or IRS-related disputes involving the preparer?
- Do preparers visit clients at homes or businesses, or is all work done at a fixed office location?
- How many seasonal or part-time employees are hired during filing season, and what background screening is in place?
Activities described by this code
Other activities to examine
Census classification reference
For educational purposes only. AI-generated insurance research and automated logic can contain errors. Independently verify classification and coverage decisions.
Compare another operationInsurance operations research — draft
Tax preparation establishments assist individuals, families, and small businesses in preparing and filing federal, state, and local income tax returns. Services typically center on the annual filing season, though some offices operate year-round for amended returns, extensions, and prior-year catch-up work. Client data — including Social Security numbers, financial records, and banking information — is gathered and processed, creating meaningful data privacy exposure alongside the core professional liability risk.
Questions to investigate
- What mix of returns does the office prepare — primarily individual 1040s, or also business returns (partnerships, S-corps, corporations)?
- Are preparers credentialed (CPAs, enrolled agents, Annual Filing Season Program participants) or uncredentialed staff?
- Does the office operate year-round or primarily during tax season, and how many returns are prepared annually?
- What systems are used to collect, store, and transmit client documents — cloud-based software, local servers, or paper files?
This insurance research was generated in April 2026. It has not received a complete human review. The October 12, 2026 audit checked codes and titles only, not descriptions or coverage assertions.