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Free IRS-run tax filing pilot to be available in 13 states

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Re: Free IRS-run tax filing pilot to be available in 13 states

#31

Post by Macha »

markkanof wrote: post #8
droptablemain wrote: post #2

If an entire industry can be killed by a public service, it probably didn't deserve to exist in the first place.

That seems like an overly broad statement. If the companies producing tax filing software were solving a problem for their users then why shouldn't they exist. Even with this new option being offered by the IRS there is still likely room for private companies to solve the same problem (tax filing) in a way which is perceived as better by some users and so still justify their existence.

The problem's continued existence was one they were largely responsible for. It's a bit like saying someone who prevents the installation of trash bins then offers to pick up litter for money is providing a valuable service.

Re: Free IRS-run tax filing pilot to be available in 13 states

#32

Post by sriram_sun »

droptablemain wrote: post #2

If an entire industry can be killed by a public service, it probably didn't deserve to exist in the first place.

Cost of policing is close to or possibly the highest expense for any city. That did not put security guards out of business.

Re: Free IRS-run tax filing pilot to be available in 13 states

#33

Post by joshribakoff »

They already have this in some form, its called “free fillable forms”, and it sucks. For example if there is any minor issue like something off by a cent it fails to submit and won’t tell you which field has an error or what the error is. Although its not officially maintained by the IRS, I don’t think… if i recall Intuit maintains it as part of an (arguably nefarious) agreement with the IRS. It’s presumably intentionally made to suck and hard to find.

Re: Free IRS-run tax filing pilot to be available in 13 states

#34

Post by nkingsy »

stetrain wrote: post #18
lr4444lr wrote: post #11

Earlier quoted context omitted.

Maybe. Or maybe a lot of people will leave refunds on the table because the software will be bad at helping people identify their deductions. Also, my wife paid a joint filing online under my SSN, and the system couldn't figure that out and claimed we were in arrears. I'm not hopeful.

How will I know the software is properly optimizing my deductions without a 30 second animated progress bar with the words "Optimizing Deductions" flashing on screen, while also advertising to me that I could be leaving savings on the table unless I upgrade to the TurboTax Pro Ultimate package for no up-front cost* * cost of TurboTax Pro Ultimate will be deducted from your refund amount, plus interest.

* deducting turbo tax fees from your refund amount incurs a 59.95 convenience fee (hopefully they don't do this anymore. They did it to me a few years ago and wouldn't refund the charge when I didn't notice and called to cancel it).

Re: Free IRS-run tax filing pilot to be available in 13 states

#35

Post by SanderNL »

droptablemain wrote: post #2

If an entire industry can be killed by a public service, it probably didn't deserve to exist in the first place.

There is a good chance it sucks and is wonky as hell, making the value proposition of proprietary solutions even more attractive.

Re: Free IRS-run tax filing pilot to be available in 13 states

#36

Post by markkanof »

chowells wrote: post #17
markkanof wrote: post #8

Earlier quoted context omitted.

That seems like an overly broad statement. If the companies producing tax filing software were solving a problem for their users then why shouldn't they exist. Even with this new option being offered by the IRS there is still likely room for private companies to solve the same problem (tax filing) in a way which is perceived as better by some users and so still justify their existence.

Some businesses only exist due to government failure. The solution is to fix the government, not preserve a middleman asking for their cut.

Completely agree that fixing the government is the real solution, but until that is done, why shouldn't private companies be able to produce (optional) tools that make filing easier?

Re: Free IRS-run tax filing pilot to be available in 13 states

#37

Post by cujaneway »

Alupis wrote: post #15
droptablemain wrote: post #2

If an entire industry can be killed by a public service, it probably didn't deserve to exist in the first place.

I disagree. If anything, this will compel the tax preparation software companies to get even better than before, and offer an increased value proposition. Competition benefits the consumer, and for a long while there's been limited, mostly fixed competition (via Brand awareness mostly). FreeTaxUSA is amazing, and cheap, but it does not yet have the brand power the incumbents do. It's unlikely the IRS offering will be…

This whole thing reads like insanity to me lol, I live & work as a contractor in the UK and I'm taxed directly through PAYE on earnings. Beyond that I just file my tax return through the Gov website.

Re: Free IRS-run tax filing pilot to be available in 13 states

#38

Post by stetrain »

nkingsy wrote: post #34
stetrain wrote: post #18

Earlier quoted context omitted.

How will I know the software is properly optimizing my deductions without a 30 second animated progress bar with the words "Optimizing Deductions" flashing on screen, while also advertising to me that I could be leaving savings on the table unless I upgrade to the TurboTax Pro Ultimate package for no up-front cost* * cost of TurboTax Pro Ultimate will be deducted from your refund amount, plus interest.

* deducting turbo tax fees from your refund amount incurs a 59.95 convenience fee (hopefully they don't do this anymore. They did it to me a few years ago and wouldn't refund the charge when I didn't notice and called to cancel it).

Then you click Cancel, followed by another 30 second animation of the progress bar going backwards while "Un-Optimizing Deductions" flashes on screen.

Re: Free IRS-run tax filing pilot to be available in 13 states

#39

Post by wolverine876 »

nlh wrote: post #14

This is only tangentially-related, but I know I'm asking the right audience: I switched, blissfully, away from Quicken/Quickbook/Xero/all that heavy crap to very simple and elegant textfile-based accounting (ledger/hledger) and it's been the best and most flexible accounting experience I've ever had. I finally feel completely in control of my companies' books. Is there an equivalently-blissful tax-filing software/ser…

> I switched, blissfully, away from Quicken/Quickbook/Xero/all that heavy crap to very simple and elegant textfile-based accounting (ledger/hledger) and it's been the best and most flexible accounting experience I've ever had. I finally feel completely in control of my companies' books.

I love the idea, but not being an accounting expert (maybe you are), I'd be afraid that some immaturity or lack of expertise in the software would cause a big problem in a critical way. What makes you confident in it?

Also, how do you share data with accountants, etc.?

Re: Free IRS-run tax filing pilot to be available in 13 states

#40

Post by enraged_camel »

SanderNL wrote: post #35
droptablemain wrote: post #2

If an entire industry can be killed by a public service, it probably didn't deserve to exist in the first place.

There is a good chance it sucks and is wonky as hell, making the value proposition of proprietary solutions even more attractive.

It might suck initially, but that doesn't mean a lot. Healthcare.gov works pretty well today (not perfect but gets the job done for most people), despite the shoddy rollout.
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