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TurboTax and H&R Block Saw Free Tax Filing as a Threat

propublica.org

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Re: TurboTax and H&R Block Saw Free Tax Filing as a Threat

#11

Post by arachnids »

jontaydev wrote: post #2

Can anybody suggest an alternative program that will help me file? I know I could probably do this myself, but I prefer having software validate my returns. It seems like this is something an indie developer could create, but maybe its too complicated and too risky?

Credit karma lets you file both federal and state for free . CreditKarma's filing service is pretty new, so there are lots of edge cases they don't handle well or at all (for example the UI to enter stock trades is awful). I put my numbers into TurboTax and CreditKarma to make sure they match for validation, then filed with CreditKarma.

You give them a lot of data about you that they then use to sell you insurance and loans and so on, but I actually find their services useful so I consider that a fair trade.

Re: TurboTax and H&R Block Saw Free Tax Filing as a Threat

#12

Post by siosonel »

jontaydev wrote: post #2

Can anybody suggest an alternative program that will help me file? I know I could probably do this myself, but I prefer having software validate my returns. It seems like this is something an indie developer could create, but maybe its too complicated and too risky?

I haven't used this online spreadsheet, but saw it mentioned in a HN discussion earlier this year: https://sites.google.com/site/excel1040/

Re: TurboTax and H&R Block Saw Free Tax Filing as a Threat

#14

Post by danso »

FWIW, Turbotax/H&R's hiding of their Free File site pages was discussed here about a week ago: https://news.ycombinator.com/item?id=19758126

They have since made their pages discoverable by search engines and have denied that it was intentional obfuscation. But the news in TFA is that apparently someone at (or formerly at) H&R leaked internal documents with explicit guidance:

> “Do not send clients to this Web Site unless they are specifically calling about the Free File program,” the guidance states, referring to the site with the company’s free option. “We want to send users to our paid products before the free product, if at all possible.”

(there's also interviews with former employees recalling meetings)

This is all "news" because Congress is considering a bipartisan tax reform bill that includes a law that would block the IRS from creating its own official Free File program. Senator Ron Wyden, the bill's co-sponsor, is now having second thoughts [0] and yesterday, NY Gov. Cuomo ordered a state investigation into the tax prep companies [1].

[0] https://www.huffpost.com/entry/taxpayer-first-act-free-file_...

[1] https://www.governor.ny.gov/news/governor-cuomo-calls-depart...

edit: changed "permanently block" to "block"

Re: TurboTax and H&R Block Saw Free Tax Filing as a Threat

#15

Post by toomuchtodo »

neya wrote: post #9

Just curious, is there any value to making a clone of H&R Block / Intuit and making it open source (with also hosted somewhere)? It probably takes only a weekend for me to do this and I'll be happy to do it if there is significant interest from my fellow HNers. Besides, fuck Intuit, never been a fan of them for the exact reasons mentioned in the article.

Ideally, you support potential candidates and existing representatives who will push public policy to enable the IRS (with help from the US Digital Service and 18F) to provide for tax filing directly to US taxpayers. This is the Path To Assured Success (public policy enabling and funding the IRS to directly support tax filing).

I can't imagine anyone having the will and resources to write their own tax prep system and then providing ongoing support for it though. Gonna take deep pockets and someone who really hates the professional tax prep market. It isn't a weekend project. This is a long, thankless grind.

https://www.warren.senate.gov/newsroom/press-releases/senato... (Senator Warren Leads Colleagues in Reintroducing Legislation to Simplify and Decrease the Costs of Tax Preparation and Filing)

These are the people you help get the bill passed:

> United States Senators Elizabeth Warren (D-Mass.) along with Senators Jeanne Shaheen (D-N.H.), Sheldon Whitehouse (D-R.I.), Tammy Baldwin (D-Wis.), Bernie Sanders (I-Vt.), Tom Udall (D-N.M.), Edward J. Markey (D-Mass.), Tammy Duckworth (D-Ill.), Maggie Hassan (D-N.H.), Jeff Merkley (D-Ore.), Cory Booker (D-N.J.), and Richard Blumenthal (D-Conn.) today reintroduced the Tax Filing Simplification Act to ease the tax filing process for millions of American taxpayers and reduce their costs. Last tax season, American taxpayers spent an average of 11 hours and around $200 preparing their tax returns -- a cost equal to almost 10 percent of the average federal tax refund. Representative Brad Sherman (D-Calif.) is reintroducing a House companion along with Representatives Eleanor Holmes Norton (D-D.C.), Don Beyer (D-Va.), Jamie Raskin (D-Md.), Tim Ryan (D-Ohio), Katie Hill (D-Calif.), Alexandria Ocasio-Cortez (D-N.Y.), Earl Blumenauer (D-Ore.), and Jackie Speier (D-Calif.).

Please call your representative and ask them to support this legislation. That is their job; to support the legislation you want enacted. It will take you at most ~15 minutes, and every call is tallied by congressional assistants.

https://www.commoncause.org/find-your-representative/

Re: TurboTax and H&R Block Saw Free Tax Filing as a Threat

#16

Post by mandeepj »

untog wrote: post #5
jontaydev wrote: post #2

Can anybody suggest an alternative program that will help me file? I know I could probably do this myself, but I prefer having software validate my returns. It seems like this is something an indie developer could create, but maybe its too complicated and too risky?

I've had great experiences with FreeTaxUSA, though they still charge for state returns. I have wondered before now why a non-profit couldn't set up an entirely free site and ask for donations.

Not sure about other States but IL has a free State tax filing site - https://mytax.illinois.gov

Re: TurboTax and H&R Block Saw Free Tax Filing as a Threat

#18

Post by rhizome »

neya wrote: post #9

Just curious, is there any value to making a clone of H&R Block / Intuit and making it open source (with also hosted somewhere)? It probably takes only a weekend for me to do this and I'll be happy to do it if there is significant interest from my fellow HNers. Besides, fuck Intuit, never been a fan of them for the exact reasons mentioned in the article.

I imagine that establishing the technical relationship with the IRS is one of the bigger challenges, particularly for open source.

Gotta love the "HN Weekender" moxie, though!

Re: TurboTax and H&R Block Saw Free Tax Filing as a Threat

#19

Post by nostromo »

neya wrote: post #9

Just curious, is there any value to making a clone of H&R Block / Intuit and making it open source (with also hosted somewhere)? It probably takes only a weekend for me to do this and I'll be happy to do it if there is significant interest from my fellow HNers. Besides, fuck Intuit, never been a fan of them for the exact reasons mentioned in the article.

> It probably takes only a weekend for me to do this

The tax code is very complex, and nobody could replicate these systems in a weekend. And even if you did, it would be out of date in a year.

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