Welcome to the first installment of our three-part video series, How Congress Is Killing the Tax Profession. If you’re a tax professional—whether you’re a CPA, enrolled agent, or tax attorney—chances are you’ve experienced the increasing frustration and complexity that come with preparing returns each year. If you’re a taxpayer, this series will help you understand why filing your taxes has become such a convoluted process—and why it might not be the IRS’s fault.

In Part One, we’ll explore how Congress (not the IRS) actually makes the tax rules, why Form 1040 is no longer solely about collecting taxes, and how we ended up with a system so complex it feels like it’s bending our minds.

1. Congress Makes the Rules—Not the IRS

One of the biggest misconceptions about taxes is that the IRS calls the shots. It doesn’t. Congress is the real powerhouse behind every tax rate, penalty, loophole, and deadline we encounter. The Internal Revenue Service merely interprets and enforces what Congress has passed into law.

• The Role of Lobbyists: Lobbyists play a significant part, too. These special interest groups often draft large portions of our tax code by influencing (and sometimes literally writing) the legislation that members of Congress pass.
• The IRS as Scapegoat: Though the IRS enforces these laws, it frequently takes the heat from both taxpayers and Congress when confusion or outrage arises. In reality, the agency often struggles with the same complexity that tax professionals and filers do.

Key takeaway: We elect the officials who make every rule, rate, penalty, and loophole. The IRS doesn’t have the freedom to “create” taxes; it only implements what Congress decides.

2. Form 1040: No Longer Just About Taxes

Congress realized long ago that Form 1040—the document nearly every taxpayer must file each year under penalty of perjury—could be used for much more than just collecting revenue.

Today, Form 1040 serves as a catch-all vehicle for a wide array of social and economic programs. From healthcare subsidies (like ACA credits) to education incentives (such as the American Opportunity Credit), a large number of non-tax initiatives now flow through a single tax form.

Here are just a few examples of what’s crammed into your average return:

• Welfare Distribution: Earned Income Tax Credit (EITC) and Child Tax Credit help low-income families but also add layers of eligibility rules.
• Healthcare Administration: Millions receive insurance subsidies or ACA credits through their 1040, making tax professionals unofficial healthcare navigators.
• Education Assistance: Credits for tuition and deductions for student loan interest.
• Manufacturing & Energy Rebates: Credits for buying electric vehicles or installing solar panels all filter through your annual tax filing.

Result: Instead of one bureaucracy for healthcare, another for education, another for corporate subsidies, etc., Congress has merged them into the tax system—turning Form 1040 into a labyrinth of forms, schedules, and complex rules.

3. Mind-Bending Complexity: The Consequence of Endless Tweaks

With every new social or economic program jammed into the tax code, the complexity grows—and it’s not just the number of credits or deductions. The frequency of changes has skyrocketed.

• Constant Legislative Updates: Major overhauls to the tax code used to happen every decade or so. Now, we see significant new tax legislation almost every year, if not more often.
• Retroactive Chaos: Some rules become retroactive, meaning you might have to learn mid-year that last year’s return no longer complies with “new” legislation. This is nightmarish for both the IRS (which must reprogram its systems) and tax pros (who must relearn or refile).

Bottom line: Tax professionals—and the IRS—bear the brunt of these rapid-fire changes. The average taxpayer pays for it, too, both in fees and in the frustration of navigating a system that seems impossible to understand.

Conclusion: Looking Ahead to Part Two

In this first part, we’ve highlighted the root cause of many tax headaches: Congress’s ever-growing and constantly changing tax code. The IRS is essentially the middleman, enforcing the rules handed down by lawmakers.

Stay tuned for Part Two, where we’ll dive deeper into how this chaos impacts the tax profession itself. We’ll examine the cost to practitioners, the burnout many are experiencing, and why all of this matters to you—even if you’re not a tax pro.

If you want to keep up with the rest of our series or learn more about the complexities of today’s tax system, check out OvernightAccountant.com or RealEstate-TaxPros.com. I’m Brett Hersh, your “My Tax Guy,” committed to helping you navigate this increasingly complicated world of taxes—preferably with a bit of humor along the way.

Until next time, stay informed—and remember: understanding who’s really behind the tax code is the first step in making sense of it.

Ready for More?

• Part Two: Video: The Real Impact on Tax Professionals, Blog Entry: How Congress is Killing the Tax Profession (Part 2)
• Part Three: Video: How You (Yes, You!) Can Help

Be sure to catch the entire video series to see how these issues directly affect both practitioners and taxpayers—and how you can stay ahead of the ever-shifting tax landscape.