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IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

propublica.org

11–20 of 489 posts

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#11
There is no reason the IRS shouldn't have a simple, online fillable 1099EZ that makes the calculations and validations for you. And while their at it, match the SSN to the w2 info that they have on file. This would take care of 80% of the population.

Just don't outsource it. I'm sure USDS could have it ready in less than a year.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#12
There's a large backstory documented by (mostly) propublica, some of it is here: https://www.propublica.org/article/inside-turbotax-20-year-f...

Essentially: * IRS wanted to open tax software business to private companies. * Intuit has a variety of products with similar names and each has a free offering for a specific set of tax payers (e.g. income below some number). IRS + US Gov bought the story. * Intuit caught doing a variety of false advertising, misleading documentation, adversarial website editing, etc. They make it impossibly hard to find which is the free version of whatever you need.

So this is a big first step away from the draconian Intuit monopoly. It would be interesting to know what precipitated this change.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#13
post #3

> a years-old prohibition on the IRS creating its own online filing system has been scrapped What kind of insanity leads to this? The government is prohibited from creating software that helps its citizens? There's a lot wrong with Brazil but here I just download the government-provided software (that runs on Windows/Linux/Mac) and fill my taxes in 10-15 minutes. Every year they release a new version that is easier t…

You'll hear differently, but: https://www.youtube.com/watch?list=PLKePI0ZbnT69klhhdVXnd9-e... the US effectively functions as a plutocracy. Public opinion and interest just doesn't matter.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#14
post #5
post #3

> a years-old prohibition on the IRS creating its own online filing system has been scrapped What kind of insanity leads to this? The government is prohibited from creating software that helps its citizens? There's a lot wrong with Brazil but here I just download the government-provided software (that runs on Windows/Linux/Mac) and fill my taxes in 10-15 minutes. Every year they release a new version that is easier t…

The idea was lots of people could file for free using a private online service. Not many people at all ended up using it, since it wasn't in the company's interest to have people not pay them.

More accurate: Intuit told the federal government they would absolutely offer a free e-file tax service next to their pay service, and then they used several lies and manipulative techniques so that folks could not find it or even discover its existence.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#15

This is good news, right? I'm kind of amazed that good news is happening and that the lobbying forces (eventually) got defeated in this case.

The IRS is perhaps the one government agency that just does not fuck around. It's always sensible to make sure that filing for taxes is as smooth as possible, at least for those who wish to abide by the rules. Follow the money.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#16
post #3

> a years-old prohibition on the IRS creating its own online filing system has been scrapped What kind of insanity leads to this? The government is prohibited from creating software that helps its citizens? There's a lot wrong with Brazil but here I just download the government-provided software (that runs on Windows/Linux/Mac) and fill my taxes in 10-15 minutes. Every year they release a new version that is easier t…

We have a huge constituency that believes that government taxes are the very worst thing to happen in human history, so anything that makes filing taxes easier gets heavy push back in order to support their “taxes are so hard and burdensome” narrative.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#17
This is great news!

I really hope the IRS creates it's own site, they would need to advertise it heavily though, way way too many people think eFile = TurboTax. There's already vastly better options out there but very few people use them or know about them.

Edit: I think the real killer feature would be to pre-populate the "IRS e-file" with the information the IRS already knows about you. That would get people paying attention.

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#18
post #5
post #3

> a years-old prohibition on the IRS creating its own online filing system has been scrapped What kind of insanity leads to this? The government is prohibited from creating software that helps its citizens? There's a lot wrong with Brazil but here I just download the government-provided software (that runs on Windows/Linux/Mac) and fill my taxes in 10-15 minutes. Every year they release a new version that is easier t…

The idea was lots of people could file for free using a private online service. Not many people at all ended up using it, since it wasn't in the company's interest to have people not pay them.

Of course they did not use it. Tax software companies went out of their way to make sure this would be the case. After all their shenanigans, they might as well have put Free File option in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying Beware of the Leopard.

Related: TurboTax Deliberately Hid Its Free File Page From Search Engines

https://www.propublica.org/article/turbotax-deliberately-hid...

HN discussion: https://news.ycombinator.com/item?id=19758126

Re: IRS Reforms Free File Program, Drops Agreement Not to Compete with TurboTax

#20
post #4

Not sure how factual Adam Ruins Everything is, but his skit on taxes is pretty damning for tax software companies: https://www.youtube.com/watch?v=Fj4anUL-LvY

I think they get it mostly right for tax filing. But I find them to usually be pretty blinded by ideology when it comes to some topics and severely lacking in objectivity.
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