Many customers find tax season frustrating, with only 52% of them feeling confident about filing their taxes. Addressing this growing discontent requires careful and strategic planning. By prioritizing efforts to improve customer experience, financial service providers can reduce the strain caused by rising call volumes, minimize security and compliance risks, and control operational costs.
The numbers speak for themselves; companies that champion customer needs report 41% faster revenue growth, 49% faster profit growth, and 51% higher customer retention than other organizations. This reinforces the value of being customer-first—providing reliable and adequate support that will make tax filing a seamless experience.
Tax season is difficult for most people, and the U.S. tax code spanning over 6,000 pages only makes the experience more stressful. As the Taxpayer Advocate Service says, “U.S. tax laws are overly complex.”
Further complicating this intricate landscape, the One Big Beautiful Bill Act (OBBBA) was passed into law in 2025, introducing sweeping changes to the tax code that confuse customers even more.
With so much to navigate during tax season, customers rely on service providers to provide clarity, direction, and confidence that make tax filing an easier and less overwhelming experience.
As of 2024, Americans spend 6.5 billion hours and $414 billion each year trying to stay compliant with federal tax rules. For tax service providers, this highlights the importance of meeting customer expectations because errors are costly and quickly erode trust.
That’s why many tax service providers prioritize customer service today. Not only does it reduce risk, it also drives higher retention and boosts loyalty. In fact, even a modest 5% increase in retention can boost profitability by 95%, reducing outreach costs and allowing service providers to focus on high-impact work that enhances customer experience.
To further increase satisfaction, service providers can also integrate AI-powered tools with skilled professionals. Technology enables quick and efficient service while human expertise and empathy personalize support.
With 1 in 5 customers experiencing heightened anxiety during tax season, service providers must focus on how to improve customer experience. Much of this stress stems from complex paperwork and changing rules that increase the chances of errors.
With intuitive guides and automated processes, customer distress can be alleviated. And with 24/7 support, customers can get their questions answered any time, providing peace of mind and reducing stress. Together, these solutions help providers boost trust, increase satisfaction, and maintain loyalty in a high-pressure filing period.
While technological innovation is a lever for enhancing customer experience, it is only one part of the equation. In 2024, 93% of executives said that improving customer trust also increased their profitability. This attests to the power of building stronger customer relationships as they drive loyalty and referrals. Yet many providers prioritize speed and scale at the expense of customer experience.
Customers have diverse needs, and recognizing this means tax service providers cannot rely solely on technology or a one-size-fits-all approach. What’s needed is a holistic CX-focused strategy that customers can rely on when systems fail. This requires agility to cope with unpredictable situations, sufficient data and technological integration to personalize experiences, and an operational framework that’s built for efficiency and optimizes costs.
As tax seasons become increasingly complex, customers expect faster, simpler, and more secure filing experiences. Yet legacy workflows stand in the way with inefficient processes, vulnerability to fraud and cyberattacks, and increasing errors that frustrate customers at a time when speed and accuracy are crucial.
At the same time, tax service providers bear the consequences since these faulty systems can trigger IRS penalties amounting to as much as $500,000. Beyond fines, these threaten their reputation and credibility, two of the biggest currencies in customer trust.
With so much at stake, digital transformation is urgent. Updating old systems reduces compliance and financial risks while also building customer trust with smoother, reliable experiences. In addition, a digital-first approach serves as a front line for defense. Advanced monitoring and AI-powered tools help detect risks early, saving providers thousands of dollars in fraud recovery and investigations.
As tax season nears, customers want a smoother journey that reduces handoffs and allows them to complete requirements with ease. Here’s what customers expect in 2025.
For customers, completing tax filings accurately and efficiently while avoiding costly errors and audits is a top priority. To meet this expectation, providers must provide a seamless experience across all touchpoints, guiding customers through the filing process from preparation to payment without confusion.
Consistency is a key pillar of this experience. When every channel draws from the same real-time data, updates remain accurate and credible. This ensures error-free filings and consistent support quality whether customers interact online or offline, building confidence and trust throughout the tax season.
Tax service providers that have yet to adopt AI in 2025 lose ground to competitors using these tools. With AI, tax service providers can turn customer interaction data into actionable insights.
Aside from automating routine filings and boosting operational efficiency, AI delivers real-time support and proactive reminders for customers. Providers also gain data-driven information on customer behaviors, allowing them to deliver a more personalized customer experience that differentiates them from competitors.
During tax season, many tax service providers see a spike in call volumes driven by reporting requirements such as tax preparation, audits, and year-end filings. Maintaining accuracy under pressure is critical, as even one mistake can make customers switch tax service providers, leave negative reviews, or damage the company’s reputation.
To improve customer experience, tax service providers should offer round-the-clock support that goes beyond just handling call volumes. This means deploying empathetic champions who can resolve most tax and technical issues, while seamlessly referring customers to the nearest experts for specialized guidance.
In 2025, the average cost of a data breach is $4.44 million per incident, posing a significant threat to tax service providers. Digital fraud tactics, including text scams, are also on the rise. These challenges compel providers to adopt stronger security measures so they can prevent financial losses and protect customer loyalty and reputation.
Tax service providers who handle financial data are prime targets for scams and fraud. To protect themselves and their customers, they need to follow PCI DSS, SSAE 18, and SOC 2 Type II standards. To do that, they should monitor all interactions, alert leadership to potential compliance issues, and maintain fully auditable processes—ensuring compliance, accountability, and transparency, which increase their reliability and strengthen trust and loyalty in their customers.
With tax season growing more complex each year, tax service providers are responsible for simplifying the filing process. After all, customers rely on their services not only to reduce compliance risks and errors but also to gain guidance and support.
While this sounds simple, it actually requires extensive planning, new resources and infrastructure, and CX expertise. For this reason, many tax service companies are turning to strategic partnerships to fill critical gaps.
Working with a partner that combines AI innovation, scalable staffing, and tax CX expertise eliminates unnecessary trial and error. This ultimately accelerates digitization, promoting stronger customer relationships and giving tax service providers an edge over their competitors.
