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.
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:
When free money is distributed via tax credits, fraud skyrockets. Let’s take a look at one major example:
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.
Here’s a massive problem the tax industry is facing:
The result? A tax professional shortage at the worst possible time.
With fewer tax professionals and more complicated returns, prices are rising. Simple economics: low supply + high demand = higher costs and longer wait times.
The tax deadline was last updated in 1955 when:
Fast forward to today:
So let’s ask the question: Why are we still using an arbitrary deadline from 1955?
In Part 2, we explored the real-world consequences of an outdated, overcomplicated tax system:
In the final installment of this series, we’ll discuss how you can help fix this broken system. We’ll cover:
All courses and articles are for informational purposes only and do not constitute tax advice. Taxes are complicated - do not act on course information without consulting a professional. Always refer to treasury regulation before making any tax decision. Read the full disclaimer.
Great course!
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