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How the Maker of TurboTax Fought Free, Simple Tax Filing

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Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#61

Stats about tax declaration from Sweden last year: Via internet: 19,9% Via PIN code: 20,1% Via telephone: 12,5% SMS: 6,6% Smartphone app: 2,3% Total: 60,4% filed electronically The rest sent in papers via the mail. (the old method) Source: http://www.skatteverket.se/download/18.71004e4c133e23bf6db80... Personally I have filed via the internet since 2005 both private and for my company.

SMS tax filing? #want

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#62

Earlier quoted context omitted.

some government programs have excellent customer service as compared to some corporate equivalents I am sure we could find counterexamples here.

Ever been to the DMV?

my local dmv is excellent, no lines, no wait, just 2-3 old ladies happy to help.

in a larger area, it's a 'pick a number' and wait drudgery.

ymmv

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#63
post #44
post #31

Earlier quoted context omitted.

The IRS was recruiting for interns at my university recently, who could eventually become full time workers. However, I found that at best I could enter as a GS-9, and those were positions with 5 years of expirience. The best salary I could get from that was $53,000 in NYC. Even the lowest offers my friends were getting were $60k in a low-cost area. If the government was able to fund it's IT operations at market rate…

The government doesn't do anything at market rates. They employ below market rates, and contract external companies above market rates. This is (unfortunately) by design.

Why do you say "by design"? Whose design?

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#64

Earlier quoted context omitted.

some government programs have excellent customer service as compared to some corporate equivalents I am sure we could find counterexamples here.

Ever been to the DMV?

There's an obvious distinction between state governments and the far greater competence of Federal agencies. As someone who works in a business that's heavily regulated at the local, state, and Federal level, I can tell you that the differences aren't subtle. (It will also vary quite a bit depending on the state and locality.)

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#65

Stats about tax declaration from Sweden last year: Via internet: 19,9% Via PIN code: 20,1% Via telephone: 12,5% SMS: 6,6% Smartphone app: 2,3% Total: 60,4% filed electronically The rest sent in papers via the mail. (the old method) Source: http://www.skatteverket.se/download/18.71004e4c133e23bf6db80... Personally I have filed via the internet since 2005 both private and for my company.

The latest statistics I could find for Denmark (2009) say 80% accepted the tax as prepared by the government, around 18% edited it online and 2% sent in paper.

Recently most things are automatically filed and unchangeable, even down to something like charitable giving -- if you send Amnesty some money every year, they are responsible for telling TAX so you can get a deduction. If there's an error, you have to contact your charity, not TAX.

If you paid too much money in tax, there's one specific account every citizen has, that's used by government to send you money. No checks.

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#66

Earlier quoted context omitted.

Ever been to the DMV?

I've been to the DMV to get an ID and it wasn't bad at all. The worst I've seen happen to other people is a long line. What are the big problems people apparently have with the DMV all the time? I'm from NY if that makes a difference.

Most Texas DMVs are hugely understaffed, I assume deliberately because they don't want to fund more staff, so the wait is generally long, like 2-3 hours long, and the facilities you're waiting in are old and poorly maintained. However, that's pretty TX-specific; TX generally underprovisions government services. The CA DMV is much nicer, and you can even book a specific time online!

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#67
post #37

Earlier quoted context omitted.

So, you're comfortable with just trusting the government to tell you what you owe? I'd prefer to check the math myself.

Login to IRS website, be shown all your data. Is this correct? Yes. No. buttons. Workflow is present to deal with incorrect data. The data is already submitted electronically by employers, brokerage/retirement asset management companies, states, etc. Why should I have to pay a private company (I'm looking at you Intuit) when the IRS should have the ability to provide the same service FOR FREE.

Government doesn't know your business expenses and various deductions (unless you want to stream your cash and credit card transactions directly to the IRS)

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#68
post #28

Earlier quoted context omitted.

I think you're missing the point. The IRS has already received your 1099/W2/etc and thus it knows (a) your income, and (b) how much in taxes you've already paid. By then having the IRS start your tax return for you, you would no longer have to fill in that info. The IRS makes free forms available already. Besides, are there actually people so stupid that they would give their SSN/info to a site like that?

I think many of us here don't get paid by W2 or by 1099. We are compensated in different ways which don't require those types of filings (e.g. K1), in which case we do need to fill out forms.

I can't speak specifically for the group here, but the vast majority of US taxpayers by a large margin _are_ compensated via W-2 or 1099. Isn't that who it should be optimized for, rather than outliers or exceptions?

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#69
post #7
post #4

Earlier quoted context omitted.

The IRS computer systems are stuck in the 80s. You can get them to send you a copy of the information they have; it will be ready around August. I'm not exaggerating; I've done this a couple times because I'm terrible at keeping track of the paperwork otherwise. (Protip: you can file an extension until October with no penalty.)

> Protip: you can file an extension until October with no penalty. Caveat: This is true ONLY if you are due a refund. If you owe tax you will be charged interest (and possibly penalties) for paying after the deadline[1]. http://www.irs.gov/uac/Extensions-and-Payment-Options

Technically speaking, I believe you can still file in October, as long as you pay in April. So you can estimate (guesstimate) and pay, then calculate properly and file later, if that's advantageous somehow. If you pad your estimated payment so that you overpay, you should be safe from penalties, in the event that you can decently estimate up front but can't actually file a full return for some reason.

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing

#70
post #63
post #44

Earlier quoted context omitted.

The government doesn't do anything at market rates. They employ below market rates, and contract external companies above market rates. This is (unfortunately) by design.

Why do you say "by design"? Whose design?

A certain group of politicians want to replace all government functions with private contractors, and most of those are captured by various lobbying groups representing said contractors.
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