Here’s what HIVE AI had to say about “Which tax software tools are best for different firm sizes in 2025?”:
Best tax software tools by firm size in 2025
Solo preparers and very small firms (1–3 preparers)
- Intuit ProConnect Tax Online
- Cloud-based, easy onboarding, e-file coverage for common individual and business entities, integrated e-signature and client organizers; good when you don’t want servers or VPNs. 1
- Lacerte (Intuit)
- Robust forms coverage and diagnostics for complex 1040/1120S/1065 without the overhead of enterprise suites; strong when you need deeper calc engines than basic online tools. 1
- ATX (CCH Small Firm Services)
- Cost-effective desktop option with broad forms library for small firms that prefer on‑premises control. 2
- MyTaxPrepOffice
- Affordable, cloud-first prep with collaborative tools and integrated e-file; helpful for seasonal staff. 1
- Add-ons for information returns and payroll filings
- Tax1099 (Zenwork), Yearli (Greatland), Aatrix eFile: economical 1099/W‑2/W‑3 e-file at low volume. 3
When this tier fits best
- Limited entity mix, minimal staff, desire to avoid server maintenance, and focus on turnaround and price.
- Note: IRS approval lists verify e-file data format compliance, not feature completeness—confirm the software supports your exact forms/schedules before you buy. 3
Small to mid-sized firms (4–25 preparers)
- UltraTax CS (Thomson Reuters)
- Deep forms coverage, strong diagnostics, and integration with CS Suite; good for firms growing into review workflows and trial balance imports. 1
- Lacerte or ProConnect Tax Online (Intuit)
- Lacerte for heavier complexity with desktop performance; ProConnect for distributed teams and easier scaling without servers. 1
- ATX (CCH SFS)
- Budget-friendly for multi-preparer shops that still need wide forms coverage across states. 2
- 7004 extension and business support
- UltraTax, Lacerte, ProConnect, Corptax, and MyTaxPrepOffice appear on IRS 7004 MeF provider lists—useful if you manage many business extensions. 1
- Information returns and payroll e-file at scale
- TaxBandits and eSmartPayroll for 94x, with broader ecosystems listing multiple approved 94x providers for 2025 (evaluate coverage for your specific states and volumes). 3
When this tier fits best
- Diverse return mix across states, multiple reviewers, and a need for stronger workflow tools, organizers, trial balance integrations, and reviewer signoffs.
Larger regional firms (25–150 preparers)
- UltraTax CS
- Scales with centralized admin, standardized workpapers, and integration to practice management; strong state conformity and multi-entity handling. 1
- Lacerte
- High-performance desktop with strong diagnostics; fits firms that maintain in-house infrastructure but need reviewer/manager throughput. 1
- ProConnect Tax Online
- Cloud deployment to simplify distributed workforces and remote review; helpful when avoiding VPNs/VDI. 1
- Corptax (CSC Corptax)
- For heavier corporate, consolidated, and provision needs—particularly when you support corporate clients with complex entity structures and recurring 7004 cycles. 1
- High-volume information returns and payroll
- TaxBandits, Intuit QuickBooks Payroll, Yearli/Greatland, Aatrix: streamline 1099/ACA/W‑2/94x e-file; verify coverage and integrations for your stack. 3
When this tier fits best
- Multi-office controls, standardized templates, review notes, role-based permissions, and integrations to document management, portals, and PBC workflows.
National/enterprise and specialty practices
- Corptax (CSC Corptax)
- Corporate tax lifecycle focus (provision, compliance, data management), complex consolidated returns, and global operations. 1
- UltraTax CS
- Broad entity coverage with scalable review and admin; useful alongside separate provision engines or global tools if needed. 1
- Exempt organizations
- ATX, UltraTax CS, and other approved EO MeF providers—confirm 990 schedules and e-file readiness across your EO client base. 2
- Large-scale payroll and information returns
- IRS’s approved 94x provider list is extensive—select based on API capability, SSO, and volume pricing for 94x and state UIs. 3
When this tier fits best
- Complex corporate compliance (consolidations, provisions), high-volume multi-state filings, and teams requiring granular controls, audit trails, and SOX-aligned workflows.
Special use cases and programs
Volunteer and community programs
- TaxSlayer (VITA/TCE)
- Standard platform for the IRS VITA/TCE program with specific deployment options and procedural guardrails. 4
Low-cost information return filing
- Tax1099 (Zenwork), Yearli (Greatland), Aatrix, QuickBooks Payroll
- Efficient for firms that prepare client 1099/W‑2 filings—verify they support your states and formats. 3
How to choose: evaluation criteria
Forms coverage and IRS approval
- Confirm the product supports your exact forms, states, and e-file schemas you’ll need. IRS approval signifies ATS format compliance, not feature completeness; you must still verify fit. 3
Cloud vs. desktop deployment
- Cloud tools (ProConnect, MyTaxPrepOffice) reduce server overhead and ease remote work; desktop tools (Lacerte, ATX, UltraTax desktop) can deliver performance and on-premises control. 1
Workflow and integrations
- Look for organizers, e-signatures, review notes, trial balance import, client portals, and connectors to your document management and practice management systems. Use IRS lists to confirm extension and e-file support (e.g., 7004, 94x). 1
Information returns and payroll
- If you file 94x and 1099/W‑2 at volume, ensure the provider is on the current IRS 94x MeF list and supports your bulk workflows. 3
Professional standards and client protection
- Adopt firm procedures consistent with Circular 230 best practices—supervision, quality controls, clear engagement terms, and integrity—regardless of tool. 5
Budget tips and alternatives
Entry-level and free options
- Very small firms with straightforward returns may rely on lower-cost pro suites above; for DIY clients you advise, the IRS Free File partnership offers no-cost online filing for eligible taxpayers, and Free File Fillable Forms for experienced filers with no income cap. 6
Extensions and niche filings
- If you primarily file business extensions, choose a 7004-approved provider (e.g., UltraTax, Lacerte, ProConnect, Corptax, MyTaxPrepOffice) to streamline seasonality. 1
If you share your firm size, entity mix, and whether you prefer cloud or desktop, I can map a short list with exact modules, add-on e-file providers (94x/1099), and an implementation checklist tailored to your stack.
Sources
1 – IRS.gov – Tax year 2023 7004 Modernized e-File (MeF) providers 📄 Summarize
2 – IRS.gov – Tax year 2024 exempt organizations Modernized e-File (MeF) providers — Form 1120-POL 📄 Summarize
3 – IRS.gov – Tax year 2025 94x Modernized e-File (MeF) providers 📄 Summarize
4 – IRS – Publication 5361 Fact Sheet TaxSlayer Procedural Updates 📄 Summarize
5 – Treas. Circular 230 § 10.33 Best practices for tax advisors. 📄 Summarize
6 – IRS – Publication 334 Tax Guide for Small Business (For Individuals Who Use Schedule C) 📄 Summarize
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