Intuit's secret campaign to block free tax filing

[Renew Deal]

Intuit expects to pull in around $4.5 billion in revenue this fiscal year, an increase of better than 6 percent, and it predicts that its earnings per share will jump by at least 10 percent. To preserve that income, Intuit is secretly fighting a proposed program that would allow the IRS to calculate taxes for people who request it -- because that would reduce the income Intuit earns from its tax software and tax-fiing service.

Intuit is so concerned that it has spent $11.5 million lobbying against it, working with a right-wing antitax crusader to create a fake grassroots movement to convince politicians that the public opposes free tax filing, as reported by Pro Publica and NPR.

What's keeping Intuit CEO Brad Smith up at night is "return-free filing," a voluntary alternative to hiring a tax preparer or using commercial tax software. Note the word "voluntary." No one would be forced to use the program, and it's based on information from banks and employers that the government already receives. Essentially, if you're the kind of person who has a simple return, you could ask the IRS to do your tax return for you and send you the bill.

It's likely that those who would opt in are lower-income and elderly tax payers who either can't afford to pay a tax preparer or aren't tech-savvy enough to use the tax-preparation software that is the core of Intuit's business.

Even so, Intuit calls the program "anti-consumer" and claims it would result in higher tax payments for those who use it.
<snip>

http://www.infoworld.com/d/the-industry-standard/intuits-secret-campaign-block-free-tax-filing-240663

[Enrique]

1. i can't wait for the fake grassroots campaign

they should hire Mike Huckabee to explain how Jesus was against free tax filing.

[JustABozoOnThisBus]

2. There are already "free" ways to file a simple return

But, mention "lower-income" or "elderly", and you may leave the world of "simple return" in a hurry. There are many state and federal deductions and credits to help with dependents, education, housing, energy, etc, that you might miss if you file a "simple" return.

Also, there are (in some places) free volunteers who help with taxes. These people are trained to identify and submit for some of these credits etc. And they're usually trained enough to know when they are our of their league, when you need to go to a pro because of the complexities. And a pro will usually save you more money than she costs.

I use the tax software. It programmatically does a pretty good interview. I'm not sure how good it is at identifying various "head-of-household" relationships or identifying what is a dependent.