Intuit's Tax Breakup Campaign Sparks Strong Response from the NATP

Update 10/14/2024: This article has been updated to include a response from Jeff Davis, Director of US Communications at Intuit.

"This is a Taaaax Break-Up! Babayyyyyyy!"—these lyrics from Intuit's latest national television commercial spot set the stage for a larger "Beat the Price Program" that has sparked serious concern among accounting and tax professionals.

Intuit's decision to expand into direct tax preparation and bookkeeping services has drawn the attention of the professional accounting community since its launch of TurboTax Live in 2017 and QuickBooks Live in 2019. However, this new ad campaign seems to have crossed the line for the National Association of Tax Professionals (NATP), eliciting strong reactions from the organization.

The controversial ad featuring Adam DeVine invites taxpayers to "break up" with their tax preparer to move to Intuit TurboTax. They also promise to "beat tax" taxpayers' 2023 return fees by 10% and set up a landing page to promote this campaign, a web address featured in the commercial spot.

NATP's statement: advocacy and concerns

The National Association of Tax Professionals (NATP) released a press statement expressing concerns over Intuit's latest business maneuver.

The NATP, representing tens of thousands of tax preparers across the United States, highlighted in its press release the risks of Intuit’s increased competition with independent tax preparers and accounting professionals. The organization stressed that Intuit’s hiring of human experts to directly provide services blurs the line between software provider and service competitor. The organization emphasizes that Intuit’s established market position and vast customer base could lead to a disadvantage for independent practitioners and small firms that rely heavily on their roles as tax advisors.

The press release further warns of a potentially unfair competitive landscape, where Intuit, equipped with vast amounts of user data and strong brand recognition, may challenge the independent tax professionals who are part of Intuit's own ProAdvisor program. The NATP has pointed out that the move could hurt the trust and collaboration that the company has built over decades with the tax and accounting community.

Industry reactions: a mixed landscape

This announcement is not likely to go unnoticed by other key players in the accounting association space. The AICPA, in particular, could raise issues regarding the competitive fairness and ethics of technology giants pivoting into areas typically reserved for their partners.

The NSA might also voice worries about the long-term viability of many smaller accounting firms, particularly those that count on tax season as a substantial part of their annual income. The debate will likely extend beyond competition, touching on privacy, data security, and the overall commoditization of tax services.

For many accounting professionals, these questions are more than theoretical—they speak directly to their livelihoods and relationships with clients. With Intuit actively seeking to transform itself from a software provider into a hybrid solution of both software and services, it potentially risks the possibility of eroding the independent practitioner’s value proposition.

What does this mean for Intuit?

Intuit's decision represents a bold step that aligns with the company's ongoing strategy to provide end-to-end solutions for individuals and small businesses. Their move to integrate more direct, AI-enabled, human-based services into their offerings could enhance customer convenience—something that many taxpayers may find appealing, especially if they already use Intuit products like Mint or QuickBooks for their financial management.

However, Intuit’s efforts may also backfire if they alienate the very professionals who have served as the foundation of their accounting ecosystem. Since its inception, Intuit has heavily leaned on partnerships with tax preparers, accountants, and bookkeepers to grow its footprint in the market. Many of these professionals are loyal advocates, recommending Intuit’s products to their clients and acting as brand ambassadors in exchange for software that simplifies their workflows.

Intuit must tread carefully to avoid alienating a trusted, loyal-user base—a community that has been instrumental in building and sustaining its market leadership. If key advocacy groups like the NATP or potentially, the AICPA voice opposition to Intuit, it could result in a significant backlash, with accountants and tax preparers starting to recommend alternative platforms to their clients.

The future: an uneasy balance

At the core of this development is the ongoing challenge of balancing technology-driven efficiencies with the expertise of tax and accounting professionals. As automation and AI continue to transform accounting workflows, tensions are likely to arise when software companies try to expand beyond their traditional roles. The sentiment voiced by NATP highlights the growing struggle within the accounting profession to protect the human aspect of financial advisory services amid rapid technological evolution.

Intuit's decision to provide human-led tax services is not merely a business pivot; it is an indication of where the whole of the accounting software industry may be heading—toward a future in which accounting technology providers are more competitive with service providers. This blurs the boundaries between technology, advisory, and service, forcing accounting professionals to redefine where they can best add value to their clients.

In the coming weeks, it will be critical to watch how other associations react and how Intuit addresses the concerns of its partners. Accountants and tax professionals may need to consider how they can further specialize, offer personalized advisory services, and differentiate their offerings to stay competitive in a landscape increasingly dominated by large tech firms expanding their footprints.

Response from Intuit

In response to concerns raised by the NATP, Jeff Davis, Director of US Communications at Intuit, emphasized the company’s ongoing commitment to supporting tax preparers and accountants. "The TurboTax campaign promotes full-service tax preparation by a local tax expert with the ability to maintain a multi-year relationship with the tax filer. Since our founding more than 40 years ago, Intuit has and remains committed to tax preparers, including the 12,000+ experts on our platform who earned tens of millions of dollars in income each year," said Davis.

He also highlighted that Intuit continues to invest in the accounting industry, with over 500,000 accounting professionals growing their practices through the ProAdvisor program last year. Additionally, more than 129,000 learners were trained in bookkeeping and tax preparation through Intuit Academy. More details about Intuit’s partnership with accountants can be found here.

Disclaimer: The NATP logo is used in this article solely for editorial purposes to provide context and reference regarding NATP's public statements. All trademarks, including the NATP logo, are the property of their respective owners. The use of such trademarks is not intended to imply any affiliation with or endorsement by the trademark holder.