This is Part 2 of our series, How Congress is Killing the Tax Profession. If you haven’t read Part 1, we explored how Form 1040 has transformed into a government tool for distributing benefits rather than just a tax form. Now, let’s look at the impact these changes are having on tax professionals.

When Congress adds layer upon layer of complexity to the tax code, it doesn’t just make things harder for taxpayers—it fundamentally alters what it means to be a tax professional. Today’s tax preparers are no longer just accountants. We’ve become social workers, fraud auditors, and stress-ridden compliance officers trying to keep up with an ever-changing tax system.

So, what’s happening to the tax profession? Let’s dive in.

1. Tax Professionals: Now Social Workers and Fraud Auditors

One of the biggest transformations in tax preparation is the shift from traditional tax work to managing social programs. Many of the tax credits running through Form 1040 are social welfare programs in disguise. As tax professionals, we are now responsible for:

• Determining whether someone qualifies for social programs hidden within tax credits.
• Ensuring compliance with strict due diligence requirements.
• Verifying countless pieces of documentation just to complete a tax return.

The Fraud Problem

When free money is distributed via tax credits, fraud skyrockets. Let’s take a look at one major example:

• The Earned Income Tax Credit (EITC) distributes $65 billion annually to over 26 million recipients.
• The IRS estimates that 20%–26% of these funds are issued improperly—either through fraud or simple filing errors.
• That means $14–$17 billion in taxpayer money is lost every single year just from this one credit.

And this is just one program—many other credits have similar fraud and error rates.

Who is responsible for catching these mistakes? Tax professionals. We are required to verify eligibility, ask additional questions, and complete multiple forms for every claim. This is not what most of us signed up for when we entered the profession, yet it’s become a huge part of our workload.

2. A Shrinking Profession: More Demand, Less Supply

Fewer Tax Pros, Higher Demand

Here’s a massive problem the tax industry is facing:

• Fewer professionals are entering the field.
• More tax pros are retiring or quitting.
• The complexity of tax preparation is increasing.
• Fewer people can prepare their own taxes accurately.

The result? A tax professional shortage at the worst possible time.

The Numbers Don’t Lie

• 75% of CPAs in the U.S. reached retirement age in 2020.
• Accounting majors are down 20% nationwide.
• Young professionals are avoiding tax careers, choosing easier or more lucrative paths.
• The professionals who remain are overworked and burned out.

With fewer tax professionals and more complicated returns, prices are rising. Simple economics: low supply + high demand = higher costs and longer wait times.

3. The April 15th Deadline is Outdated and Stupid

The tax deadline was last updated in 1955 when:

• The entire tax return was only four pages long.
• There were just two tax credits.
• Paper filing meant a longer processing time.

Fast forward to today:

• The average tax return has 22+ forms attached.
• More than 70 third-party reporting statements are involved.
• Brokerages and partnerships don’t even send correct tax forms until March or later.

So let’s ask the question: Why are we still using an arbitrary deadline from 1955?

Conclusion: What’s Next?

In Part 2, we explored the real-world consequences of an outdated, overcomplicated tax system:

• Tax professionals are overloaded with responsibilities that extend beyond tax work.
• The profession is shrinking, while demand continues to rise.
• The April 15th deadline is obsolete and doesn’t accommodate modern tax realities.

Coming Up in Part 3

In the final installment of this series, we’ll discuss how you can help fix this broken system. We’ll cover:

• What taxpayers need to understand about these changes.
• How Congress keeps making things worse.
• Steps you can take to protect yourself from unnecessary tax headaches.