Intuit, the company behind TurboTax, recently faced backlash from tax industry groups over its “break-up” ad campaign, which portrayed traditional tax professionals in a negative light. The campaign featured ads urging consumers to switch to TurboTax and emphasized the cost savings and convenience of using its services. The National Association of Tax Professionals (NATP) and other organizations representing tax professionals criticized the campaign for its disrespectful message and direct conflict with their members’ interests.
The ads, which aired on social media and network television, featured actor Adam Devine singing about breaking up with your tax pro in a humorous, but controversial manner. Intuit promised to undercut by at least 10% what taxpayers paid their tax pro the previous season if they switch to TurboTax’s Full Service plan for the upcoming tax season. The campaign aimed to promote TurboTax’s human assisted and full service products, which have seen fast growth in recent years.
Intuit’s decision to evolve away from the ad campaign came after meetings with tax industry groups, including the NAEA and the CSEA. The organizations expressed their disappointment with Intuit’s messaging and urged the company to reconsider its approach. Intuit’s Senior Manager of Public Affairs stated that the company would evolve its current campaign to ensure it highlights the benefits of filing with a tax preparer and emphasizes the shared goal of delivering financial benefits and complete confidence to tax filers.
Despite Intuit’s decision to phase out the controversial campaign, some tax professionals remain skeptical of the company’s intentions. The CPA from Fort Wayne, Indiana, expressed concerns that Intuit may continue to be aggressive in promoting its services and competing with traditional tax professionals. The American Institute of Certified Public Accountants, a national organization representing CPAs, has not yet released a statement regarding the campaign but is expected to address the issue soon.
Intuit’s revenue comes from various financial technology services, including TurboTax, QuickBooks, and Mailchimp. The company’s growth in the small business and self-employed sector has contributed significantly to its overall revenue, with online services showing strong growth. Intuit also generates revenue from its tax professional services, such as the Intuit Lacerte tax engine and ProConnect Tax software, which are used by accounting firms and accountants.
As the tax preparation market evolves and competition from the IRS increases, Intuit’s decision to address the concerns of tax industry groups reflects a willingness to adapt and listen to feedback. The phasing out of the controversial ad campaign demonstrates a recognition of the importance of maintaining positive relationships with tax professionals and ensuring that their interests are respected. Intuit’s commitment to delivering financial benefits and complete confidence to taxpayers remains at the forefront of its evolving marketing strategies.
