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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

#571

Post by Spivak »

refurb wrote: post #427
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…

It's impossible to automate the tax filing process unless you simplify the tax code. And I've filed taxes in countries with simple tax codes where the government pre-fills out the forms. Guess what? You still need to go and double check everything because the information comes from your employer. I've found mistakes before. So I pretty much "do my taxes" myself to make sure what the govt sends isn't wrong.

This is a misunderstanding of the actual ask from the federal government and "automating" is a bit of a misnomer. The reason the IRS could theoretically fill out your taxes on your behalf is because someone else already submitted their part of the forms. Your employer reports your income, your broker reports your capital gains and assets, your bank reports interest, etc.. The ask is less about automation more not having to do those parts twice. The IRS could send you everything they've gotten about you and you just fill in the rest and/or dispute -- for normal single income wage earners there would be nothing else to add so it's effectively automated.

The gain is that we can make "doing your taxes" a non-issue for most Americans. Sure some people will still need accountants for complicated situations but in one swoop we can eliminate hundreds of millions of hours of useless work every year for basically no downside -- it's pure gravy.

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

#572

Post by foxyv »

bluGill wrote: post #16
foxyv wrote: post #7

Did my taxes this year using TurboTax like always. Sold some stocks this year and all of a sudden I am paying $90 for TurboTax "Premium" to put a couple additional entries in the 1040. What a racket. Next year I'm going to file using something else. This has gone on too long.

Let me know if you find anyone that is better. I'm sick of TaxAct premium for the same reason. I'm ready to go back to doing my taxes by hand and mailing them in. (I'm old enough to remember doing that - it is faster than doing it on the computer except for the one year I forgot to copy line 13 of form 1234A to line 56b of form 9876B) So many dark patters where the software is pretending to take time doing a complex…

To be honest, I think I may just do it all myself like I did back in the early days. I'm a single, high income, earner with few complicated investments and no state income taxes. I may as well just fill out a 1040 myself at this point.

TurboTax tried to double count my Benevity sales anyways and I had to catch it when it messed up the 1040. Why am I paying for software? If I get to the point I can't handle it myself anymore I'll just start paying an accountant.

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

#573

Post by ryathal »

aj7 wrote: post #504
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…

Methodology: 1) Download your income transcript from the IRS using your IRS account. 2) Make sure all claimed income on the transcript is included. 3) Do the puzzle. 4) Print and file. Be sure you have a copy, either scanned or electronic, of all documents on your computer. Ditto all tax return filled in forms. Use the fill-in pdf’s the IRS provides. Do not miss a filing date. File a tax return missing important docu…

To add to this even if you can't pay, still file your taxes. It's so much better to only be on the hook for not paying than both not paying and not filing.

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

#574

Post by ryathal »

Johnny555 wrote: post #298
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 had their computer systems scour a bunch of the bank records and discovered that I had forgotten to claim a 1099 I assumed they did that automatically for everyone -- does that mean that if I "forget" to attach a 1099 then they IRS won't know unless they do this special "electronic audit"?

pretty sure everyone gets an "electronic audit." It's really just a check to see if you claimed all the income that others claimed they gave you.

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

#575

Post by tombert »

gautamcgoel wrote: post #310
tombert wrote: post #128

Earlier quoted context omitted.

About two weeks ago, I got a letter from the IRS telling me that I owe an extra eight-thousand dollars from my 2020 return, with a $1000 fine and $200 interest as a result. [1] I'm not mad about owing the money, but what annoys me is if they have enough information to know that I underreported, then why am I part of this equation to begin with? Clearly they have enough of my tax data to know I screwed up, so why don'…

How did the IRS learn about the stock sale?

I'm assuming that E*Trade sent them my consolidated tax form last year (that I forgot to enter in my tax software), but I don't know for sure.

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

#577

Post by anamax »

lokar wrote: post #555
anamax wrote: post #364

Earlier quoted context omitted.

Yup, every major newspaper and TV/Cable network is a corporation. If the NYT can push candidates, why not Sears?

Sears is free to say what they want on their website or distribute leaflets. That's not the same thing as donating cash.

The "work product" of CU was their movie.

Is it okay with you if a corporation donates money to Roger Moore to support the production of a documentary that said corporation agrees with?

Does it depend on whether said documentary advocates for/against a candidate?

How do we define "advocate"? (Is saying "Fred took money from Mexican drug lords" advocacy?)

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

#578

Post by kj4ips »

PaulDavisThe1st wrote: post #472
briandear wrote: post #413

Earlier quoted context omitted.

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.

Technically there's no difference between the government deciding to: 1. give everyone who does X US$300 2. give everyone who does X a US$300 tax credit Both rely on the collection and disbursement of government revenue, which is typically accomplished via taxation. However, 1. does not introduce any new clauses to the tax code. 2., by contrast does, and it generally functions as a slow steady drip, drip, drip of new…

The main difference is that not all credits are refundable. If you have a $7500 nonrefundable credit, but only have a tax liability of $5000, that extra $2500 just vanishes.

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

#579

Post by aj7 »

cstoner wrote: post #565
noduerme wrote: post #551

Earlier quoted context omitted.

Well, that's a very glass-half-empty way of looking at it. I'm saying that high earners have to help subsidize lower earners the more luxuries they accrue in their life. It's not the earning after all that makes the difference between rich and poor; that's why the wealthiest people in America pay no income tax . They're not earning anything, officially. But boy do they spend . So maybe, I don't know, if you're really…

I think you drastically over-estimate what percentage of income the rich spend on luxury goods. People don't stay rich by buying things. I consider myself pretty high income. If I was just taxed on consumption, I would bet I'd pay probably half as much tax as I do now.

Yep. Luxury goods are at least half aspirational. Until the shortages, always super buys on BMW’s with 15k in the Miami-Ft. Lauderdale area.

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

#580

Post by aj7 »

gambiting wrote: post #549
adwww wrote: post #544

Earlier quoted context omitted.

So low earners are allowed to eat basic food, but pay astronomical taxes for any luxuries in their life. Which you and I could easily afford.

How is that any different right now? Low earners drive some shit cars, while you and me can (probably) afford a brand new Audi. How is that fair? /s >>Which you and I could easily afford. That's the key part here. You tax those who can afford it the most.

An Audi? Heh heh.
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