Ask HN: Why hasn't AI replaced Tax filing software
Intuit has a market cap of ~$80B and there are others. Intuit aggressively lobbies against free tax filing or automated tax filing by IRS, which gets all the info anyways.
I don't know the financial penalties of a faulty Tax filing in America since this is just done automatically for individuals in Sweden by our IRS-equivalent. But I assume this is something you don't want to mess up. If so, apply an general stochasticity argument for why AI isn't end-to-end responsible for much at all where details and correctness really matters.
You are trying to solve a politics and people problem with non deterministic, unnecessary technology.
“Why does the system insist on inefficiency to suck $80B/year out of taxpayer pockets?” is easy to answer. That is the purpose, by design.
https://en.wikipedia.org/wiki/The_purpose_of_a_system_is_wha...
If we want better outcomes and systems, we need to elect better people. It’s that simple. Better luck next time.
https://fedscoop.com/democrats-bill-would-bring-irs-direct-f...
https://www.warren.senate.gov/wp-content/uploads/media/doc/b...
Exactly this.
https://www.gao.gov/products/gao-25-107611
During fiscal year 2024, IRS spent about $1.5 billion to modernize systems that handle some of its most critical taxpayer services and business functions.
...
In March 2025, IRS paused these programs to reevaluate priorities and start new IT modernization efforts.
This pattern has been repeating for decades.
Spend billions. Throw results in trash. Repeat.
Also, lets not forget, 99% of the IRS could be abolished with a simplified tax code and process, and the reason that doesn't happen, is because then 99% of grift would stop as well.
If government is the wizard of oz, the tax code are the levers behind the curtain that get pulled to modify the publics behavior.
If private companies are handling electronic filings, that private sector activity is taxable. Its an asset to the IRS. If the IRS is doing it internally, its a liability and an expense.
Your work, your transactions, your expenses in complying with the law, your penalties for non-compliance, your headaches and suffering, etc, etc etc.
These are all assets to the IRS. You serve them.
The only reason that billions are being spent today is that in 2022, the Inflation Reduction Act (IRA), granted $80 billion mandatory spending boost for the next 10 years in order to modernize tech for the first time in 60 years.
The goal was that if they could identify people who were underpaying on taxes, they'd be able to recoup that benefit, and at the same time reduce inflation. This is a strategy that China has taken, and is currently using to great effect by identifying off-shore tax shelters and shadow companies that benefit the ultra-rich then taxing them as they always should have been.
As for the US, all seemed to be going well until Doge stepped in and began to claw back funding, so the IRS was forced to change its initiatives to fit the current administrations theme.
I doubt we'll be seeing any tax shelters unveiled soon.
But blockchain will solve political corruption
If you’re thinking by an independent, motivated do-gooder, TurboTax costs around $100 for most people, and few people are going to use some untested solution to save that small amount of money, vs. the scare of being fully liable for one’s own tax mistakes. FreeTaxUSA is even cheaper.