Many customers find tax and compliance frustrating, with only 52% of them feeling confident about filing their taxes. Common challenges include staying current with tax code changes, handling complex tax scenarios, and fixing inaccurate records.
For firms, having a clear plan to tackle these complexities will set them apart from competitors. While traditional processes create challenges, embracing technology and customer-centric solutions can turn these problems into valuable opportunities.
Guiding customers through tax season is one of the biggest challenges firms experience each year. The U.S. tax code spans over 6,000 pages and has tripled in size over the last 40 years. As the Taxpayer Advocate Service says, “U.S. tax laws are overly complex.”
This is more difficult for those doing taxes for the first time. Without proper support, customer difficulties often translate into challenges for firms.
The U.S. tax code changes about 400 times a year, making compliance a moving target. For mid-sized firms, tax complexity is one of the biggest challenges that adds costs and leads to unclear advice from tax professionals. At the same time, customers want more than compliance. They seek guidance throughout the tax process.
To meet customer expectations, firms must deliver digital-first, personalized experiences. Otherwise, customers may switch tax advisors. While 80% of firms plan to raise fees this year, true differentiation comes from simplifying complexity and delivering confidence, not just compliance.
The gap between tax jargon and customer understanding continues to widen. When customers cannot grasp the rules, they shoulder tax penalties, financial losses, or even IRS audits.
Thus, 41% of firms now prioritize customer service (CX) above other professional services. Strong CX drives higher customer retention, turning customers into loyal advocates who explore new offerings and provide referrals. Even a modest 5% increase in retention can boost profitability by 95%, reducing outreach costs and allowing firms to focus on high-impact work that enhances customer experience.
As tax and compliance laws evolve, customers rely on firms for clear and consistent guidance. Without this, firms risk losing trust and eroding customer loyalty.
Varying tax codes create heavy compliance for firms. Staff spend long hours working with outdated systems that slow them down. Instead of focusing on strategy, teams drown in paperwork which drives burnout. Fixing this problem requires stronger team management, from task assignment to performance tracking and support.
The workload only worsens burnout. As regulatory compliance becomes a top concern for firms, professionals must stay diligent to avoid risks. On average, non-compliance costs firms $2.5 million in penalties, draining resources that could otherwise drive growth. Scaling under these conditions is difficult.
The challenge grows as tax regulators demand more granular data. However, many firms struggle with poor data access and limited technology skills. This compels them to connect regulation, data management, and technology to handle today’s increasingly complex tax function.
Digital transformation is no longer optional. It streamlines operations while cutting errors, costs, and inefficiencies. As of 2025, 21% of tax and accounting firms have adopted enterprise-level AI, while 46% of accountants use it. Firms without a modernization strategy risk losing their edge to faster, more reliable competitors.
Security is another priority. Outdated systems are more prone to breaches, ransomware, and insider threats. Without protection, a single incident can cost millions. Falling short incurs tax penalties and damages credibility, one of the biggest currencies in a trust-driven industry.
As tax season nears, firms must prioritize offering a smoother customer journey and avoid operational disruption. Below are some strategies to do that.
Expertise matters most when the work is complex. Studies show that tax professionals with deeper knowledge of filing processes and a clear vision of outcomes deliver stronger results..
The same goes for customer experience in tax services. Great support requires a solid grasp of tax rules, compliance, and customer challenges. Without this, firms not only risk disappointing customers, but also making costly errors.
In the complex world of tax and compliance, firms that merge excellent CX with tax expertise consistently achieve higher retention, greater revenues, and stronger growth.
For tax professionals, managing customer expectations is a top priority. Clear communication builds strong customer relationships. Seamless omnichannel experiences ensure this communication reaches customers at every stage, reducing friction from tax prep to payment.
To deliver smooth customer journeys, consistency is key. When every channel pulls from the same real-time data, updates are accurate and credible. Meeting customers at every touchpoint with tailored support builds trust, drives retention, and enhanced operational efficiency while cutting down on errors, rework, and costly delays.
Firms that have yet to adopt AI lose ground to competitors using these tools. Top CX companies like Everise are leveraging AI-based solutions to turn customer interaction data into actionable insights.
For firms, this means smarter decision-making, proactive solutions, and stronger customer relationships. Using a combination of data and deep industry expertise, companies can utilize AI to deliver more personalized support that drives better operational performance and outcomes.
During tax season, firms see a spike in call volumes driven by reporting requirements such as tax preparation, audits, and year-end filings. For firms, accuracy under pressure is critical. Even one mistake can result in penalties, audits, or extra costs for customers.
To prepare for this busy season, firms need more than additional headcount. They need strong systems, streamlined processes, and the right partner to ramp quickly while maintaining high-quality service. This ensures effective scaling during tax season.
Only 48% of customers feel satisfied with their accountant, leaving more than half open to switching, even when the technical work is accurate. This paints a stark reality: firms are judged not only on what they deliver, but also on how they deliver it.
To meet both, firms need more than tenured tax and fintech experts; they need experienced CX professionals with proven track records of providing excellent service and delighting customers. Expertise builds credibility, while care, accuracy, and timeliness strengthen customer trust and loyalty.
Financial data is a main target for cyberattacks, and outdated systems leave firms exposed. A single breach can trigger legal penalties, financial losses, and reputational damage.
In 2025, the average cost of a data breach was $4.44 million per incident. As a result, regulatory expectations around financial data security continue to grow. Digital fraud tactics, including text scams, are on the rise as technology advances.
To ensure data security, leading firms comply with PCI DSS, SSAE 18, and SOC 2 Type II to protect customer data and reinforce trust. They also monitor all contacts and alert leadership to potential compliance risks. In addition, making information fully auditable adds another level of accountability.
Simplifying the tax and compliance process gives firms more than efficiency. It strengthens retention, reduces mistakes, and helps maintain compliance in an environment where rules are always changing.
Working with a partner that brings AI accuracy, scalability, and proven industry knowledge takes the trial and error out of the process. It keeps operations steady, protects data, and gives firms a competitive edge that lasts.
