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FTC sues Intuit for its deceptive TurboTax “free” filing campaign

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Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#441

Post by neilfrndes »

zw123456 wrote: post #271

A few years back I got audited, and it was called an "electronic audit" by the IRS. Which basically meant that they had their computer systems scour a bunch of the bank records and discovered that I had forgotten to claim a 1099 for some contract work I had. OK, so they sent me a computer print out and they had cross checked everything on my return electronically, my property tax deductions, my stock dividends so on…

This NPR planet money episode explains why tax filing is still the way it is: https://www.npr.org/sections/money/2019/04/03/709656642/epis...

Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#442

Post by trulyme »

runako wrote: post #421
throwaway09223 wrote: post #412

Earlier quoted context omitted.

This would be true if it weren't for the standard deduction. Something like 90% of all filers opt for the standard deduction, obviating the need for itemized expenses. Almost everyone would be best served by IRS calculated taxes. It's the wealthy and those with non-wage income who need the alphabet schedules.

> those with non-wage income This is a lot of people now, thanks to the gig economy. Similarly, farmers plus people who work for tips (at employers that do not centralize tips).

Genuinly curious: do people in US report tips on their tax forms? (forgive my ignorance - tips are much less common around where I live)

Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#443

Post by Griffinsauce »

creakingstairs wrote: post #348
zw123456 wrote: post #271

A few years back I got audited, and it was called an "electronic audit" by the IRS. Which basically meant that they had their computer systems scour a bunch of the bank records and discovered that I had forgotten to claim a 1099 for some contract work I had. OK, so they sent me a computer print out and they had cross checked everything on my return electronically, my property tax deductions, my stock dividends so on…

They've even done a pilot program that literally did what you wanted. [1] And yes, it was much better experience: > Almost all participants said that they would opt to use the service the following year. And yes, as you have said, the answer is lobbying. > Tax preparation services strongly opposed ReadyReturn and have lobbied against its expansion. [1] https://www.taxpolicycenter.org/briefing-book/what-was-exper... .…

> EDIT: I can't find the podcast I heard this in, but pretty sure the tax professor that spearheaded this pilot got followed by people hired by Intuit.

This feels somehow like it should be illegal to willfully and knowingly make the common good worse in favor of your company. Perhaps via antitrust.

Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#444

Post by blowski »

nathancahill wrote: post #287
zw123456 wrote: post #271

A few years back I got audited, and it was called an "electronic audit" by the IRS. Which basically meant that they had their computer systems scour a bunch of the bank records and discovered that I had forgotten to claim a 1099 for some contract work I had. OK, so they sent me a computer print out and they had cross checked everything on my return electronically, my property tax deductions, my stock dividends so on…

Government: You owe us money. It’s called taxes. Me: How much do I owe? Gov’t: You have to figure that out. Me: I just pay what I want? Gov’t: Oh, no we know exactly how much you owe. But you have to guess that number too. Me: What if I get it wrong? Gov’t: You go to prison Source: https://twitter.com/jordan_stratton/status/11181414550616719... I dig this one up every April.

In the UK, I’m told how much I owe. A year later, I get fined because they told me the wrong amount.

Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#445

Post by astura »

quadrifoliate wrote: post #400
drdec wrote: post #147

Earlier quoted context omitted.

FYI, the 1040EZ form no longer exists. It was eliminated in the name of simplifying the forms (don't ask me how that's supposed to work).

> the 1040EZ form no longer exists That is wild. I remember using it for my first job, and yep, it took me all of a few hours to fill it out by hand and mail it in.

A few hours? HOURS? The 1040EZ was like 6 questions, it shouldn't have to take you more than 10 minutes.

Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#446

Post by broptimist »

briandear wrote: post #413
PaulDavisThe1st wrote: post #371

Earlier quoted context omitted.

The central problem is the refusal of US governments (state & federal) to pay people money to do things they want to encourage rather than give them tax credits and whatnot.

Taxes shouldn’t be used to get people to do things or not do things. Taxes should be used only to fund the essential services of the government: common defense, a legal system to enforce contracts, and that’s about it. When taxes are used as a means of control, that’s totalitarian. Tax policy should always be neutral.

So you wouldn't be in favor of a carbon tax? What about a tax on tobacco sales in a universal healthcare system? (to offset tobacco users' additional healthcare costs)

Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#447

Post by quickthrower2 »

xtracto wrote: post #127
belval wrote: post #13

I know that ship has sailed, but I really wish politicians would go back to making promises that have an impact on everyone like abolishing tax fillings. It might be different in the US, but in Canada I file my taxes using the CRA's data directly. TurboTax even fetches it directly from their website. What's the point? They have my T4, my T2202 (studies) and everything else. Just send me a letter telling me how much m…

In México if you are an average employee earning less than around $50000 usd (I.e. most workers), your employer can "do" your taxes (very simple, they report what they have withheld from you). If you have some amounts you want to regain from losses, etc., you can still do your taxes manually. That means logging into the free MEX IRS platform, which shows all your tax info preffilled. Most likely the stuff you want to…

UK has PAYG tax, Australia is similar, if you have a job, perhaps some shares it is zero work. No max salary to worry about.

Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#448

Post by systematical »

I stopped using TurboTax after it told me I owed $20,000 to the District of Columbia. I went to an accountant and DC ended up owing me money. Clearly I entered something wrong in TurboTax, but the experience was enough for me to decide paying someone is worth the money and frankly saves me much time as it only takes me minutes to send my information by email and another few minutes to review the results and digitally sign.

Most of my income is from W2 and some 1099 here and there. As others mentioned, America is backwards and the politicians and 1% keep fleecing it towards Romes fate.

I love seeing those on the top get fleeced for a change, unfortunately this will just be a slap on the wrist.

Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#449

Post by quickthrower2 »

perardi wrote: post #183

I know, I know, there’s so many dark patterns in TurboTax that it’s cliche to point them out… …but man, this was a particularly egregious example I came across this year. https://imgur.com/ojpLvRW You can pay for TurboTax using your refund…with an additional $39 processing fee . That is just wild.

That is a payday loan that has 100% AAA collateral at loan shark rates, on a system that you are trusting like your dentist to do the right thing. Nice.

Re: FTC sues Intuit for its deceptive TurboTax “free” filing campaign

#450

Post by philipswood »

JSavageOne wrote: post #376
softveda wrote: post #328

Earlier quoted context omitted.

This is how is works in Australia. The Australian Tax Office will pre-fill your tax return online with income from your wages, interests, managed fund distributions, dividends etc. That maybe enough for simple tax returns, you can just accept their values and submit. What they don't know is your income from sources like rental income or crypto. They also don't know deductions you are going to claim. In this case you…

Pretty much every other major developed country operates like this. Here in South Korea for example filing taxes is as simple as logging into some government portal, verifying that the information they already have on you is correct, and making any corrections if necessary. 10 minutes, done. The U.S is unique in forcing its citizens to waste countless hours and pay hundreds/thousands of dollars every year doing the u…

For comparison, as an example of how other developed/developing countries do it:

I’m a South African citizen, I get an SMS that a pre-filled-in tax return is available online.

I can then log in to their online portal and accept it or amend it and submit it electronically.

Currently I can usually just accept and submit it.

Some years I might need to add or tweak income and expenses, but broadly speaking they are pretty correct.

They have all the income and benefit details from standard corporate employers, expense and contribution info from medical aids (something like medical insurance, but a bit more sane as far as I can tell), investment and banking contributions from financial service providers, etc.

You can opt for extra deductions which require extra paperwork from your side. And they don’t always have income info from side hustles or correct expense info from “unusual” arrangements between you and your spouse. Sometimes your $BIGCORP’s finance department can declare your benefits incorrectly which needs fixing.

But for most middle-class income earners I suspect they can just log in and click accept.

You can pay money and use a tax consultant to see if they can navigate the current rules for a better result, but unless you have a complicated setup you don’t need to.

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