Top 500 Undersaturated ERO Markets

Looking for the best opportunities to open or expand a tax preparation business? The ERO Watch “Top 500 Undersaturated ERO Markets” dashboard identifies ZIP codes across the United States where demand for tax preparation services appears high relative to the number of existing IRS Electronic Return Originators (EROs).

This rather plain looking table is perhaps the most refined and valuable information on ERO Watch. These markets have high per-ERO electronic filing demand, with high per-ERO population and household count.

This interactive dashboard helps tax professionals, tax franchise operators, independent preparers, and investors discover underserved tax preparation markets with strong potential for growth.

How ERO Watch Defines an Undersaturated Market

Each market is analyzed at the ZIP code level using IRS electronic filing activity and demographic data. To qualify for this list, a ZIP code must rank in the top 20% nationally for all three of the following metrics:

• Households per ERO -> This is the the number of households divided by the number of active EROs in the most recent data year.
• Adult population (18+) per ERO -> This is the adult population divided by the number of active EROs.
• Tax returns filed per ERO -> This is perhaps the most important metric. This is the sum of returned electronic filed by EROs in the zip code, divided by the number of active EROs.
  

By combining these measurements, ERO Watch highlights areas where there may be substantial taxpayer demand but relatively limited tax preparation competition.

What You Can Discover

The dashboard allows users to explore:

• ZIP codes with high taxpayer-to-ERO ratios
• Markets with strong tax filing volume relative to existing preparers
• Potential expansion areas for tax preparation firms
• Geographic regions with lower ERO saturation
• Opportunities for new storefront tax offices
• Areas where independent preparers may face less competition
  

How to Use this Dashboard

• On this dashboard, browse the list or the map, or filter for a community or state of interest.
• Once you’ve found a market that piques your interest, go to our ERO Site Selection map and research adjacent market areas. Use the search button to quickly find the zip code or community of interest.

• Visit the main ERO Search page and learn about existing businesses in the market.
• Check the Inactive Preparers list. There could be a recently shuttered ERO who may be open to transferring their book of business. Alternately you could ascertain if their former space is available to rent.
  

Designed for Tax Professionals and Industry Researchers

This dashboard is useful for:

• Current IRS Electronic Return Originators (EROs)
• Tax preparation franchise operators
• Independent tax preparers
• Multi-office tax firms
• Tax industry consultants and vendors
• Investors researching tax business opportunities
  

Interactive Market Analysis Tools

Users can sort, filter, and compare ZIP code markets by multiple criteria, including filing activity, population metrics, and ERO density. The dashboard is designed to help tax professionals make more informed decisions about business expansion, marketing strategy, and office placement.

ERO Watch combines IRS filing data with geographic and demographic analysis to provide unique insights into the U.S. tax preparation industry.