I think the IRS would love to be able to process the 95% of the tax returns that are (or should be) simple enough to do over the phone. They used to actually have a 'phone in your tax return' option for people just starting out and really a lot of people could still do that.
The IRS has been working for years towards creating a system where most people would not have to use tax preparers.
BUT
Two things work against it. First is that everyone wants their deduction, their tax credit, their piece of the money pie back. The ones with a few bucks push very hard on their congress reps to get some small piece of tax rebate or credit pushed through buried in the next tax bill or as an amendment to some important financial bill. There are hundred of thousands of these little caveats that help one interest group or another making the actual tax documentation into a huge mess that only an expert can really get through. Or really good software written by an expert.
The other piece of the puzzle that mitigates against something like a true flat tax is the companies, like Inuit (Turbotax, Quickbooks, et al) that make millions and millions by creating an industry to process complex taxes. If the complexity were to go away then that part of the company that managed taxes would be bankrupt. They pay an amazing amount into the political pockets of reps who ensure that the tax code stays complex (while saying how much they regret it being so). It is a racket.
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