The tax code is too complicated—everyone needs an advocate in their corner to get the best outcome during tax season

There’s no debating that tax season can be a stressful time for hardworking Americans, families, and small business owners each year. At the same time, for many, tax refunds are also the biggest check of the year, with more than 30% of Americans saying they rely on their tax refund to make ends meet—especially among Gen Z and millennials. 

As the tax code continues to change and taxes become more complicated, we know how  important it is to empower people to better understand and take charge of their personal finances. That’s why we believe taxes should be more transparent, simple, and fair for taxpayers so they can get their best tax outcome and make the most of their finances. 

Taxpayers deserve transparency

Today’s tax code is long and complicated. For more than two decades, TurboTax has consistently evolved and improved to help taxpayers navigate the increasingly complex tax code. With more than 6,000 pages of federal and state tax law, the rules have grown more than threefold since TurboTax was first launched. How can any single person figure it all out?

Even the Taxpayer Advocate Service (TAS) has noted that tax laws are “overly complex.” The TAS has said that  “The current system of preparing and filing tax returns is too difficult, costly, and time-consuming.” 

Intuit TurboTax’s services are engineered to make the process transparent so taxpayers file with confidence. Our TurboTax Live Tax Experts make filing taxes easy, no matter the tax situation. And for taxpayers who need more time filing, we offer the free TurboTax Easy Extension tool, saving them the hassle of additional forms. With TurboTax, taxpayers not only save money on professional assistance but also benefit from a smoother, more efficient tax-filing experience. 

Greater transparency also allows more families to understand—and take advantage of—the valuable credits and deductions they’ve earned. Cindy, a TurboTax Customer Success Manager in Arizona, told us, “One of the most vulnerable populations of taxpayers are those who rely on the Child Tax Credit and the Earned Income Tax Credit (EITC)—two extremely complicated tax credits to navigate. If someone improperly claims a child on their tax return, even by accident, the taxpayer is then required to print and mail the tax return, causing significant delays in processing.” In fact, an estimated 15-20% of eligible taxpayers do not claim the EITC, because the complexity even confuses many tax professionals. 

Douglas, a TurboTax Live Business Lead from West Virginia, goes on to say, “Something that should be as simple as determining if a child is a dependent can end up being a complex issue. Challenges like this can then have a domino effect and compound other issues around deductibles and credits.” For us, we work to help make the tax filing process more transparent, ensuring that millions of taxpayers do not leave money on the table because the forms to claim critical tax credits are too complex or time consuming to complete.

Inequities exist within the tax system—taxpayers deserve to be treated fairly 

We know that inequities exist in the tax system, particularly for low-income families, people of color, and non-native English speakers. Intuit’s recently published TurboTax Tax Trends Report showed only 37% of single tax filers in the lowest income category received a refund in tax year 2022—down from 59% in the prior year. A recent study from Syracuse University found that low-income families who qualify for the EITC are 5.5 times more likely to be targeted by current IRS systems for an audit. And the IRS recently acknowledged that Black taxpayers receive audit notices three-to-five times more often than non-Black taxpayers. 

So what are we doing about it? Besides our maximum refund and tax savings guarantee, and audit support guarantee for customers, we’re working with groups to advocate real solutions for all Americans. We believe that our company’s mantra of powering prosperity means powering prosperity for all, and we’re committed to making sure that under-represented or marginalized communities have a tax code that works for them, too. 

To ease the burden around tax time – simplicity is key

Without help, filing your taxes and complying with the increasingly complex tax code takes more time, money, and energy than ever before. Making the complicated simple also allows families and small business owners to better understand their true financial picture and achieve their goals. A simpler tax code would allow taxpayers to better understand the important deductions or credits for which they may be eligible. It would also empower more individuals to make informed decisions and take control of their financial future. 

Unfortunately, each year, the federal tax code only gets more and more complex. Our TurboTax team sifts through the 6,000+ pages of state and federal tax law to simplify the process so taxpayers don’t have to do the heavy lifting. Innovative tools like Intuit Assist, a new generative AI-powered financial assistant, can help streamline the tax process even further. But ultimately, a simpler tax code is how more taxpayers can see even greater benefits each tax season. 

The focus this tax season should be on ensuring transparency, fairness, and simplicity 

Intuit is committed to working with policymakers to craft a simpler, fairer, and more transparent tax code. We believe in supporting and fueling people’s financial momentum, making sure they always get the best tax outcome—from accuracy and speed to bilingual support. And we will continue to help millions of individuals, families, and small businesses navigate the increasingly complex tax filing process. After all, our core mission is to provide easy-to-understand tax and financial guidance to everyone, from all walks of life, who are seeking peace of mind when it comes to their finances.