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[Maiden Voyage]

IRS drops longstanding promise not to compete against TurboTax

Tax-software makers can’t hide free services from Google search, IRS says.

arstechnica.com

The Internal Revenue Service's new agreement with the tax-software industry prohibits companies from hiding their free options from search engines and allows the IRS to offer its own tax-return software in competition against TurboTax

As ProPublica reported in April 2019, TurboTax maker Intuit used a robots.txt file to "deliberately hid[e] its Free File page from search engines." TurboTax subsequently changed the code on its Free File page so it wouldn't be hidden from Google and other search engines anymore, but at least five US states opened investigations into TurboTax's marketing and provision of its free tax programs. H&R Block was also hiding its free tax service from Google search using the same method, ProPublica reported at the time, but H&R Block seems to have lifted that restriction based on searches we conducted today.

With the industry under legal pressure, the IRS extracted new promises from Free File, an industry consortium that represents Intuit, H&R Block, and other tax-prep-software makers. The changes were announced by the IRS on December 30 and put into an addendum to the 18-year-old IRS/Free File agreement that requires free services for low- and mid-range incomes.

IRS Commissioner Chuck Rettig said the changes "will make Free File stronger and give taxpayers another reason to consider this valuable software option." The IRS and industry will continue working together to "help low- to moderate-income taxpayers and to pursue meaningful opportunities to enhance taxpayer awareness and use of the Free File Program beyond the 2020 filing season," Rettig also said.

Interesting for those who have been duped before. I'd love to see even more reform on simplifying taxes and the filing process.

 

[Nikana]

I honestly know nothing about the free versions and always assumed it was just a way to get you in the door then at the end of the process they would be like oh well you have "this type of return" which will cost XXXX.

Is that not the case?

 

[Maiden Voyage]

I honestly know nothing about the free versions and always assumed it was just a way to get you in the door then at the end of the process they would be like oh well you have "this type of return" which will cost XXXX.

Is that not the case?

They are legally required to offer free filing for low-to-middle-income filers--$69k/year or 70% of filers.

More info: https://www.irs.gov/e-file-providers/about-the-free-file-program

 

[Nikana]

They are legally required to offer free filing for low-to-middle-income filers--$69k/year or 70% of filers.

More info: https://www.irs.gov/e-file-providers/about-the-free-file-program

Interesting. My ignorance got the best of me this time. ill have to check this out.

 

[Maiden Voyage]

Interesting. My ignorance got the best of me this time. ill have to check this out.

It still sucks for those in the 30% who still do standard filing because if we use a filer like TurboTax we get charged. I just started filing on my own a few years ago to avoid the costs. Not a great feeling to need to pay in and pay to file on top of it. Thankfully my filing is relatively easy.

 

[Trojita]

Those companies are the reason why we can't have a simplified tax submissions. We go through this same shit every year because their lobbying prevents common sense progression to an easier and better system.

 

[Paltheos]

Wait, this is a thing? Oh man, Imma check that out later.

Edit: Thanks for the inadvertent PSA Maiden Voyage

 

[Dural]

We need to just move to a Fair Tax and get rid of the IRS completely.

 

[zeorhymer]

No biggie. When I had simple income and investments, I just used the forms. Now that it got complicated, I have to use either software or a tax service.

 

[Sp3eD]

Yeah I’ve done my taxes free through turbo tax Mobile app for the last 3 years. I too thought it was some trick at first, but so far it’s been super easy and I get my return back in like 2 weeks.

Turbo tax even started just using all your last info if you used the app the year before. And just has you take a picture of your new W 2. I did my taxes in like 10 minutes last year on my lunch at work.

 

[Paltheos]

We need to just move to a Fair Tax and get rid of the IRS completely.

?
Why get rid of the IRS? Human tax specialists serve an important function. They scan sniff out fraud.

 

[godhandiscen]

Interesting. My ignorance got the best of me this time. ill have to check this out.

It wasn't your ignorance, but the dark patterns employed by Intuit (the company that develops TurboTax). They want to convince you that paying was the only option.

 

[BigBooper]

There's no reason the government should be less efficient just to create jobs. I would love if the IRS had their own simplified process.

 

[cryptoadam]

Fuck Turbo, Dr Tax its where its at bitches.

 

[triplestation]

 

[davepoobond]

Been paying for the last few years, I don’t exactly make a lot but don’t qualify for the free file anymore.

Hopefully this helps people like me somehow eventually

 

[Rest]

We need to just move to a Fair Tax and get rid of the IRS completely.

How do you propose verification of fair taxation without government oversight of taxation? Do you understand what the IRS is?