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IRS tests free e-filing system that could compete with tax prep giants

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Re: IRS tests free e-filing system that could compete with tax prep giants

#461

In my country I don't need to do anything. They calculate the tax, and if I owe anything extra, or am owed a return, I get mail about it. But there are downsides too, we also have free healthcare and the last school shooting was more than 80 years ago.

Yeah, but are you free, though? /s

Re: IRS tests free e-filing system that could compete with tax prep giants

#462
post #428

On the upside, if the tax-preparation industry is destroyed or severely diminished, it would make it easier to reform/simplify the tax code at a later date should a future government be so inclined. On the downside... no way would I use a tax preparation system provided by the IRS. It's bound to be a UX nightmare, like all government software, there's an obvious conflict of interest (the IRS has no reason to help fin…

>I'd rather not give them any more visibility than I have to into my personal finances.

This sort of attitude isn't productive, the IRS is not out to get you and they already know how much you make (unless your income is all cash you made from selling things out of the back of your truck).

Re: IRS tests free e-filing system that could compete with tax prep giants

#463

> A direct-to-IRS e-file system is wholly redundant and is nothing more than a solution in search of a problem," said Rick Heineman, a spokesman for Intuit, the company behind TurboTax. "That solution will unnecessarily cost taxpayers billions of dollars and especially harm the most vulnerable Americans." Extraordinary that he could say that sentence with what I assume was a straight face.

Yes, TurboTax is indeed redundant.

Re: IRS tests free e-filing system that could compete with tax prep giants

#464
post #428

On the upside, if the tax-preparation industry is destroyed or severely diminished, it would make it easier to reform/simplify the tax code at a later date should a future government be so inclined. On the downside... no way would I use a tax preparation system provided by the IRS. It's bound to be a UX nightmare, like all government software, there's an obvious conflict of interest (the IRS has no reason to help fin…

How recently have you used a government website? Most of them are pretty good. They often don't look great but they're usually highly functional. And the ones that do get modernized are actually usually quite good.

Re: IRS tests free e-filing system that could compete with tax prep giants

#465
post #428

On the upside, if the tax-preparation industry is destroyed or severely diminished, it would make it easier to reform/simplify the tax code at a later date should a future government be so inclined. On the downside... no way would I use a tax preparation system provided by the IRS. It's bound to be a UX nightmare, like all government software, there's an obvious conflict of interest (the IRS has no reason to help fin…

>I'd rather not give them any more visibility than I have to into my personal finances. They already kinda have all the visibility they want. Remember the whole joke about the IRS - "we know exactly how much you owe, but we're not going to tell you that amount because you have to figure it out yourself, and if your number doesn't match ours, you could go to jail for tax fraud". If you use anything but cash for everyt…

The IRS does not really know much of that at all unless you receive money through a source that files a 1099 or 1099k. They can certainly find out a lot of stuff through an audit. But they don't know that someone wrote you a check for $30k to pay you for your side gig unless the payor files a 1099 for the payment.

Re: IRS tests free e-filing system that could compete with tax prep giants

#466

> A direct-to-IRS e-file system is wholly redundant and is nothing more than a solution in search of a problem," said Rick Heineman, a spokesman for Intuit, the company behind TurboTax. "That solution will unnecessarily cost taxpayers billions of dollars and especially harm the most vulnerable Americans." Extraordinary that he could say that sentence with what I assume was a straight face.

>"Extraordinary that he could say that sentence with what I assume was a straight face."

If you can not lie and twist the facts you will not become politician / spokesman / etc.

Re: IRS tests free e-filing system that could compete with tax prep giants

#467
post #446

Earlier quoted context omitted.

Makes you wonder why there wasn't an open source tool for this to begin with. Why did nobody feel the urge to make this?

I would imagine because of the self barter nature of open source. Open source only works when the group that can make the tools are also the group that uses them. So they are bartering with themselves. That's how they "pay" for it. But contributing back to the shared pool of resources Taxpayers can't contribute back to the pool that software engineers use. The people who build it will not be "compensated" with other…

Maybe it should be open source but read-only. The only opposition to a government filing system that I think makes any sense is that we shouldn't necessarily trust the government to get the taxes right*. Making the tax software open source (or public) would mitigate that concern.

* - It's not something that I'm concerned about but I think some skepticism of the government is healthy if easily addressed.

Re: IRS tests free e-filing system that could compete with tax prep giants

#468

The steelman case for opposing "auto-filing" or having the IRS provide tax preparation is that the intention of requiring everyone to file is that all citizens should be directly aware of the amount of taxes being assessed and the complexity of the tax code itself, with the objective of making people oppose legislative increases in the complexity of the tax code, and to make tax increases more intrusive so that legis…

In the UK how much tax is taken is stated on our payslips. Nothing hidden about it, it's stated right there with your pay and your take-home

Re: IRS tests free e-filing system that could compete with tax prep giants

#469
post #436
post #428

On the upside, if the tax-preparation industry is destroyed or severely diminished, it would make it easier to reform/simplify the tax code at a later date should a future government be so inclined. On the downside... no way would I use a tax preparation system provided by the IRS. It's bound to be a UX nightmare, like all government software, there's an obvious conflict of interest (the IRS has no reason to help fin…

> no way would I use a tax preparation system provided by the government. As someone who has used government-provided tax preparation systems my entire life, I'm curious what your threat model here is exactly.

The IRS will be incentivized to collect as many tax dollars as possible. That could inform decisions that would end up making it harder for taxpayers to save money. The US does transfer payments via the tax code so doing your taxes is in many ways similar to applying for benefits in other countries.

But that's fine. That would mean that TurboTax would have to provide value by way of minimizing what you owe to the IRS instead of being the easiest way to navigate a complicated process with legal consequences if you make a mistake.

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