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I've already commented on the NYTimes site, but I'll add a little more here.
Intuit is playing on a "don't trust the government" attitude that's unseemly. Given their pricing deception this year, it would appear that they're hardly in the best position to argue that private companies are more trustworthy.
Nor do I consider data provided by private companies particularly higher quality. For example, every year, the Payer info that Fidelity provides on 1099R's when you import into tax software is different from the Payer info that Fidelity prints on its paper forms. And this year, I see that they fill in a different number for (at least) one box on a 1099-INT, depending on whether you import or print the form.
This is not to say that I expect the IRS to do a great job; simply that the private industry bar is so low that the IRS need do little to do better.
Why not? They're "suppose" to review them for accuracy anyway, and audit you if they find Errors...just let them do the Whole Filing Process at their Expense, just supply them with your records (income statements and deductions) and wish them luck Then MAYBE, Tax reform would come about...always thinking...tb
It is Intuit who is responsible to keep the tax code complex? Really?
Now it is true if the tax code was not complex, Intuit might never exist as a company. However of all the issues with tax filing we are worried about Intuit's opposition of free tax filing/whatever? That is what is important? Not the special interests who lobby congress for all kinds of exemptions that complicate the tax code?
I want to know who funded that Professor's "research". Surely no one does anything altruistically. Maybe there is a story there.
Meanwhile, here is food for thought. I used Microsoft Word so I don't have to hand write letters. I don't worry about how Microsoft might be making it difficult for other word processors to come into the market. Similarly I used Turbo tax so I don't have to fill in printed tax forms. I do not eFile, because then I don't have to worry about my readymade electronic copy ending up in companies contracted by IRS in other continuents to review my return. I'm paranoid about identity theft (since I have suffered it in the past). I always print and snail mail. Someone in house in the country is doing data entry and storing my return on antiquated disk tapes. I like that.
Turbotax is a tool. Use it, don't use it, use it like you want it. Don't be a tool, don't shoot the tool, tool it like it is, etc. etc. etc.
They already do in the sense that, reflecting the intentions of Congress, they promulgate the rule set which is then followed by our accountant. If the IRS, following that same rule set, did the actual calculation the result would be identical, and it would save me a lot of money.
There are, of course; many things with the IRS desires (rules/regs) that lag technology and common sense.
If one files electronically (to the best of my knowledge) , is retired and receives a 1099-R; that this form is never sent in physical form to the IRS, yes? As the IRS has an electronically provided matching document.
If one files a paper form, the IRS requires that the paper 1099-R provided to the filer, be attached to the Form 1040.
@msf Yes.........thank you. I excluded the wording regarding "if tax was withheld". This to me, makes this all the more strange. They want the 1099 paper copy if tax was withheld, but not if no tax was withheld. This circumstance, of course; being the choice of the individual.
It is Intuit who is responsible to keep the tax code complex? Really?
Now it is true if the tax code was not complex, Intuit might never exist as a company. However of all the issues with tax filing we are worried about Intuit's opposition of free tax filing/whatever? That is what is important? Not the special interests who lobby congress for all kinds of exemptions that complicate the tax code?
.
This is a separate issue from that of tax code complexity. MFOers have tax prep needs that, while not usual, are more involved than most.
The majority of individual US taxpayers have very basic tax filing needs - they only have wage income and take the standard deduction. As a VITA tax preparer, I see many people who would benefit from having the IRS send them a pre-filled return. They don't have access to the Internet to use TurboTax or the like, find the 1040 incomprehensible, and can't afford to pay the exorbitant fees H&R Block charges to prepare even the most basic of returns (not only that but I've heard many a taxpayer tell me that a Block preparer took a course of action that is clearly out of bounds).
The IRS has all this basic info in its system (I doubt anyone here has ever had to get an transcript from the IRS but trust me, they have all your W2s, 1099s, 1098s, SSA statements on fle before you submit your return) so why not eliminate the middleman for those who so choose.
You would still have the option of using TurboTax or hiring a tax pro but why be forced to if it's unnecessary?
This starts to delve into another recent thread here regarding tax simplification. If the IRS already has this information, why not let them take the appropriate amount out of each paycheck and skip the whole filing endeavor each year? This would apply to the average taxpayers who file each year on earned income etc. The tax preparation folks would not like this but the simplicity to the taxpayers would be a blessing. Then, rather than than overpaying to the IRS and getting a refund, most would have more money each pay period to spend and or invest.
Comments
Intuit is playing on a "don't trust the government" attitude that's unseemly. Given their pricing deception this year, it would appear that they're hardly in the best position to argue that private companies are more trustworthy.
Nor do I consider data provided by private companies particularly higher quality. For example, every year, the Payer info that Fidelity provides on 1099R's when you import into tax software is different from the Payer info that Fidelity prints on its paper forms. And this year, I see that they fill in a different number for (at least) one box on a 1099-INT, depending on whether you import or print the form.
This is not to say that I expect the IRS to do a great job; simply that the private industry bar is so low that the IRS need do little to do better.
That says it all.
Then MAYBE, Tax reform would come about...always thinking...tb
It is Intuit who is responsible to keep the tax code complex? Really?
Now it is true if the tax code was not complex, Intuit might never exist as a company. However of all the issues with tax filing we are worried about Intuit's opposition of free tax filing/whatever? That is what is important? Not the special interests who lobby congress for all kinds of exemptions that complicate the tax code?
I want to know who funded that Professor's "research". Surely no one does anything altruistically. Maybe there is a story there.
Meanwhile, here is food for thought. I used Microsoft Word so I don't have to hand write letters. I don't worry about how Microsoft might be making it difficult for other word processors to come into the market. Similarly I used Turbo tax so I don't have to fill in printed tax forms. I do not eFile, because then I don't have to worry about my readymade electronic copy ending up in companies contracted by IRS in other continuents to review my return. I'm paranoid about identity theft (since I have suffered it in the past). I always print and snail mail. Someone in house in the country is doing data entry and storing my return on antiquated disk tapes. I like that.
Turbotax is a tool. Use it, don't use it, use it like you want it. Don't be a tool, don't shoot the tool, tool it like it is, etc. etc. etc.
There are, of course; many things with the IRS desires (rules/regs) that lag technology and common sense.
If one files electronically (to the best of my knowledge) , is retired and receives a 1099-R; that this form is never sent in physical form to the IRS, yes? As the IRS has an electronically provided matching document.
If one files a paper form, the IRS requires that the paper 1099-R provided to the filer, be attached to the Form 1040.
Kinda strange, eh?
Take care,
Catch
Yes.........thank you. I excluded the wording regarding "if tax was withheld". This to me, makes this all the more strange. They want the 1099 paper copy if tax was withheld, but not if no tax was withheld. This circumstance, of course; being the choice of the individual.
The majority of individual US taxpayers have very basic tax filing needs - they only have wage income and take the standard deduction. As a VITA tax preparer, I see many people who would benefit from having the IRS send them a pre-filled return. They don't have access to the Internet to use TurboTax or the like, find the 1040 incomprehensible, and can't afford to pay the exorbitant fees H&R Block charges to prepare even the most basic of returns (not only that but I've heard many a taxpayer tell me that a Block preparer took a course of action that is clearly out of bounds).
The IRS has all this basic info in its system (I doubt anyone here has ever had to get an transcript from the IRS but trust me, they have all your W2s, 1099s, 1098s, SSA statements on fle before you submit your return) so why not eliminate the middleman for those who so choose.
You would still have the option of using TurboTax or hiring a tax pro but why be forced to if it's unnecessary?