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IRS to begin trial of its own free tax-filing system

nytimes.com

41–50 of 338 posts

Re: IRS to begin trial of its own free tax-filing system

#41

Earlier quoted context omitted.

Absolutist takes like this never achieve much. Yes, it could be better. But an mvp-type launch that does some things well, without trying to achieve everything on day one, would definitely not be a "complete waste". If successful, it's laying the base for the next iterations of functionality. For a lot of folks, they have one or two W2 forms to enter, and that's it. It's really not that hard. If even a million or so…

The IRS should play try to create an actual MVP. Create an API which allow for efile (which I assume already exists given turbotax) and create an API which allows the download whatever information the IRS has on the tax payer. Then allow companies or open source software to create whatever value add they want on top of these APIs. That sounds like a minimalist launch.

That does not sound like an MVP. Then it’s up to random chance that they create the right API format and then someone makes an app to use said API and doesn’t also use it to steal data from gullible people. You’ve multiplied the number of ways this can go wrong and reduced the chance that anyone would use it.

Re: IRS to begin trial of its own free tax-filing system

#42
post #39

Earlier quoted context omitted.

Which is really the main issue. Offering a more accessible free version to file taxes is great, but the real problem is the need to file taxes at all for a lot of people. The IRS already knows the relevant info: Your employer sends W-2 information, your bank and broker are sending the various 1099 forms for interest, dividends, stock sale gains/losses, etc. Same for your spouse and kids/dependents. Don't even need to…

This is a good first step. Ideally it turns into a "verify this all looks correct & add anything we're missing" kinda thing.

Great way to look at it. It is a significantly smaller jump once the Federal system is in place and already handling returns for millions/years.

Re: IRS to begin trial of its own free tax-filing system

#43
post #3

> A spokeswoman for Intuit, Tania Mercado, criticized the direct file project as a “half-baked solution” and a waste of taxpayer money. “The direct file scheme is a solution in search of a problem,” she said. Wow, I thought that Intuit would have gone for a little more subtlety.

From the article and from a poster below: "For the pilot participants will have to enter their own financial information, the I.R.S. said." It is indeed a complete waste of taxpayer money unless they actually prefill with the IRS' data.

Why would you say that? If a taxpayer can copy the fields from their w-2 and have it provide a straightforward and correct filing without trying to divert them to dark patterns trying to steal money from them, that is a huge benefit.

Re: IRS to begin trial of its own free tax-filing system

#45
post #3

> A spokeswoman for Intuit, Tania Mercado, criticized the direct file project as a “half-baked solution” and a waste of taxpayer money. “The direct file scheme is a solution in search of a problem,” she said. Wow, I thought that Intuit would have gone for a little more subtlety.

This is why we still have the income tax system that we do. It’s a $14 billion a year industry. I’ve talked to people who work the lobbying system very hard. There’s lots of wining and dining to make sure no one messes with the complexity of the system. We need more people who are immune to lobbying in government positions. We’ll see how this goes.. depending on the next election cycle this will either get quashed qu…

I worked at a government "lab" (MITRE) that maintained the IRS system. The system was allegedly so complicated that if the tax code and the software conflicted, the software won. The stack is legacy and intentionally on minimal life support.

Re: IRS to begin trial of its own free tax-filing system

#47

Earlier quoted context omitted.

> In one possible scenario included in the agency’s report to Congress, the I.R.S. could fill out tax returns with information it already has, like data from W-2 wage statements. For the pilot, however, participants will have to enter their own financial information, the I.R.S. said.

So in its initial form it is indeed a complete waste of tax payers money. Shocking.

Why is it that when private institutions make software they’re suppose to “iterate fast” and quickly get an MVP out

But when a government agency is working in software, suddenly all the best practices are a “waste of tax payer money”

Seems silly

Re: IRS to begin trial of its own free tax-filing system

#48
post #3

> A spokeswoman for Intuit, Tania Mercado, criticized the direct file project as a “half-baked solution” and a waste of taxpayer money. “The direct file scheme is a solution in search of a problem,” she said. Wow, I thought that Intuit would have gone for a little more subtlety.

Too funny. So it's a solution in search of a problem... that they also try to solve?

Re: IRS to begin trial of its own free tax-filing system

#49
post #41

Earlier quoted context omitted.

The IRS should play try to create an actual MVP. Create an API which allow for efile (which I assume already exists given turbotax) and create an API which allows the download whatever information the IRS has on the tax payer. Then allow companies or open source software to create whatever value add they want on top of these APIs. That sounds like a minimalist launch.

That does not sound like an MVP. Then it’s up to random chance that they create the right API format and then someone makes an app to use said API and doesn’t also use it to steal data from gullible people. You’ve multiplied the number of ways this can go wrong and reduced the chance that anyone would use it.

You've increased the places where things can go wrong (in third party client apps) while not having any control over their quality. We'd hear "oh, IRS opened things up!", then deal with a dozen half-baked clients, and conclude "IRS sucks at something so simple!".

Agreed - public API first is the wrong place to start.

Re: IRS to begin trial of its own free tax-filing system

#50
I have a hard time understanding why the IRS doesn't at least have a basic web portal for individuals and businesses to do simple things like update addresses, send secure correspondence, check on the status of correspondence, file forms electronically, etc. A lot of paper forms and letters, human resources and time could be saved with such a system, even if it doesn't actually provide for any tax computations itself.
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