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

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

#41
post #9

HN has always been at war with TurboTax. Edit: looks like this line didn't go over so well. To avoid distractions, I'm going to move these links to another post and mark this subthread off topic. Links moved to https://news.ycombinator.com/item?id=21924055 .

I suggest you change "HN has always been at war with TurboTax" which unless I'm mistaken is a reference to 1984, in which history is rewritten retroactively[1]. To me this phrasing seems to imply that half of your links would be strong support of TurboTax.

Since this whole subject includes a lot of doublethink (such as the fact that according to a video someone posted in this thread, the Free File Alliance is a front group to hide free filing), I think it would be better not to include phrasing that suggests doublethink. I could be misreading your comment, though.

It seems that you might not have been aware of this reference? (But the other people responding to your comment are picking up on it.)

[1]

>To hide such contradictions, history is rewritten to explain that the (new) alliance always was so; the populaces are accustomed to doublethink and accept it.

https://en.wikipedia.org/wiki/Nineteen_Eighty-Four

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

#42
post #28

Earlier quoted context omitted.

> What kind of insanity leads to this? The government is prohibited from creating software that helps its citizens? "Lobbying" and "campaign contributions", aka paying congresspeople aka straight up corruption but you can't use the C word in US politics. H&R Block and Intuit have been greasing palms for years to keep the agreement in place and encode it in law: https://www.propublica.org/article/congress-is-about-to-…

While I agree there is a money problem, it's not quite so simple as just "paying people off". The money goes to their campaign funds which I'm sure get abused sometimes, but they also get called out and prosecuted for it. Additionally, money donated directly to the politician's fund is limited. Money paid to a PAC is very much separated from the politician. They can't so much as coordinate with the PAC. So it's more…

> While I agree there is a money problem, it's not quite so simple as just "paying people off".

Sure, it's paying people off with more steps, and keeping them when they are so they keep providing the services you paid them for.

> Money paid to a PAC is very much separated from the politician. They can't so much as coordinate with the PAC.

They can't so much as explicitly and officially coordinate with PACs. I'm sure a second of thinking will reveal the flaw.

> So it's more about having money to get reelected than a simple personal bribe.

You're the one talking about personal bribes. And I still fail to see how the fig leaf of "campaign donations" is anything more than a bribe with more steps. “Oh they’re not getting money they’re getting the means to make money”.

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

#43

So in Canada I pay about $15 CAD to file for my household. It takes 20 mins and is submitted digitally. Is this the equivalent of the issue in the USA or is it more expensive or something? I get that free filing is kind of obvious as a right, but the online service really does give me $15 of value so I've never thought to be upset by it.

Yeah. TubroTax is around $40 to file. CreditKarma offers their own version which is free. The controversy is that the IRS bound its own hands in saying it couldn't make its own filing software.

I see no problems with private companies charging a Fee to provide a better service.

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

#44
post #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.

> There is no reason the IRS shouldn't have a simple, online fillable 1099EZ that makes the calculations and validations for you.

It is largely due to Republicans that we don't have such a program. Voting matters. https://priceonomics.com/the-stanford-professor-who-fought-t...

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

#45
post #38

This USA tax thing has always baffled me... it is the exact definition of why we pay taxes: for the government to provide services that are common to the country´s citizens. There´s nothing more common than tax collection: rich, middle class or poor. Why wouldn't citizens demand a public tax filing process? Even in Mexico we have an automagical tax filing process that makes: a) The great majority of the population wh…

[deleted]

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

#47
One of the sad things behind the story: Bill Campbell was Chairman of the board at Inuit while this was going on.

His story is inspiring. I’m a capitalist at heart. But I’m not a monopolist or a crony—and hope not to become one.

The best among us aren’t perfect. We should take this as a cautionary tale.

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

#48
post #38

This USA tax thing has always baffled me... it is the exact definition of why we pay taxes: for the government to provide services that are common to the country´s citizens. There´s nothing more common than tax collection: rich, middle class or poor. Why wouldn't citizens demand a public tax filing process? Even in Mexico we have an automagical tax filing process that makes: a) The great majority of the population wh…

An actual argument I've heard from TurboTax shills is that tons of people underpay taxes now with the self report system, and having the government pre-fill forms for you to rubber stamp would effectively increase taxes on the working class.

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

#49
post #25
post #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.

What about States? Should the IRS make a online form that will do your state tax too?

It would be nice but that's on a per state basis and would need to be provided by either third parties like Intuit or state governments.
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