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Bipartisan bill to block free tax filing through IRS (1 Viewer)

Sen. Ron Wyden, D-Ore., who is co-sponsoring the legislation in the Senate with Iowa Republican Chuck Grassley, defended the bill, noting that the for-profit tax companies’ agreement to provide free filing services to those under the income threshold would be codified into law. He also said that the bill includes a provision backed by Democrats to restrict the IRS’ use of private debt collectors to go after unpaid taxes, so it will only affect taxpayers above a certain income threshold.

The bill is a “bipartisan, bicameral compromise so it includes priorities of both chairmen and ranking members,” a Wyden spokesperson told ProPublica, adding that the senator “supports giving the IRS the resources it needs to offer more services to taxpayers.”

 
I just got through reading about this and listening to several segments on NPR about it.  In short the "free tax filing" thing is true in the sense that the lobbies have convinced the IRS NOT to come out with their own tax return system like turbo tax.  However, in exchange, these companies are required to offer free services to those under a certain income level.

On top of all that there are TON of other things in the law that needed to be considered.  If you take a look, you'll see the soundbyte is significantly worse than the reality.

 
I don't care, there should be no additional cost to anyone to pay the government.  
I don't understand.  Anyone?  Regardless of income, regardless how complicated their taxes are, and regardless of whether they get the assistance of an individual or company to help them?

 
I just got through reading about this and listening to several segments on NPR about it.  In short the "free tax filing" thing is true in the sense that the lobbies have convinced the IRS NOT to come out with their own tax return system like turbo tax.  However, in exchange, these companies are required to offer free services to those under a certain income level.

On top of all that there are TON of other things in the law that needed to be considered.  If you take a look, you'll see the soundbyte is significantly worse than the reality.
Frankly, having the companies provide the free ones (I assume these are them) sounds like a much better idea to me that relying on the IRS to develop one.

 
@IC FBGCav Please edit your title.  It's just flat out wrong and deceiving.
Not its not.  But whatever.
I really encourage you to read through all the bill.  I started out in a similar position when I knew nothing of the bill....as I said the soundbyte is 100% incomplete/inaccurate.  "Block" implies there is a service now and that's not true.  The IRS offers zero products for people to do their taxes other than the forms and an instruction book.

 
I really encourage you to read through all the bill.  I started out in a similar position when I knew nothing of the bill....as I said the soundbyte is 100% incomplete/inaccurate.  "Block" implies there is a service now and that's not true.  The IRS offers zero products for people to do their taxes other than the forms and an instruction book.
Why does the IRS offer zero products?  Don't be lamb.

 
So they are not trying to up sell seniors and dumb people in the free market?  
The free ones that I linked to are pretty clear when they are free.  I'm over the income maximum, so I can't use them. Maybe they upsell during the process?  I don't know. 

 I've never paid a cent to have my taxes done or filed.  Used to do them by hand and mail them in.  Switched to those free, fillable PDFs with free electronic filing.

 
The free ones that I linked to are pretty clear when they are free.  I'm over the income maximum, so I can't use them. Maybe they upsell during the process?  I don't know. 

 I've never paid a cent to have my taxes done or filed.  Used to do them by hand and mail them in.  Switched to those free, fillable PDFs with free electronic filing.
They can't....it's against the law (even before this bill).  What they can do is market people to buy their product.  Over 70% of the country qualifies for the free version.  Less than 5% of that group actually does.

Turbo tax changed their process this year to be seamless if you go online.  If you qualify for it, you don't pay.  Prior to this you had to start in the free version or you started in the version you paid for.  Now, everyone starts at the same link and the cost is determined by your inputs.

 
Corps lobby to keep IRS from offering free filing.  Don't be naive. 
Yes. In fact someone said that in this very thread.

And for good reason. They remember the government's first shot at it. They couldn't even get to a deliverable product. 

This isn't the boogeyman you want it to be. For all the other things on the bill that are positives making private companies provide a free service to those to lazy to write it or by hand is a small price to pay. 

 
Time for the Linux or OpenOffice treatment.  Can't be that hard to create a tax prep program for common filing purposes.

 
Time for the Linux or OpenOffice treatment.  Can't be that hard to create a tax prep program for common filing purposes.
That'll never work from a security perspective unless you are simply creating something that does the return and prints it out then you mail it in.  1040EZ could be done in about 30 minutes...hardest part would be formatting it to the form.

 
Many of us shouldn't have to file tax returns at all. Most information on tax returns is us sending the government information it already has. The IRS could send out prepopulated returns and 40% of filers would be able to send it back with only minor changes.

https://theconversation.com/amp/tax-returns-waste-everyones-time-but-theres-an-easy-solution-the-tax-preparation-industry-and-some-lawmakers-dont-like-115196
We are so far behind the rest of the world about taking care of or making things easy for citizens.  

It is insane how in a bubble Americans are.

 
Many of us shouldn't have to file tax returns at all. Most information on tax returns is us sending the government information it already has. The IRS could send out prepopulated returns and 40% of filers would be able to send it back with only minor changes.

https://theconversation.com/amp/tax-returns-waste-everyones-time-but-theres-an-easy-solution-the-tax-preparation-industry-and-some-lawmakers-dont-like-115196
I don't diagree here except for simply trusting what the US gov't puts on paper.  Even if it were the 1040 EZ, you'd have to do your own just to make sure they didn't screw it up.  Of course none of what we are talking about right now has anything to do with the OP and everything to do with the fact that our tax code has become the dumping ground for all the legislation our legislators don't want to legislate and pass the correct way.  There isn't another tax code in the world that is asked to cover the breadth of issues ours is.

 
I really encourage you to read through all the bill.  I started out in a similar position when I knew nothing of the bill....as I said the soundbyte is 100% incomplete/inaccurate.  "Block" implies there is a service now and that's not true.  The IRS offers zero products for people to do their taxes other than the forms and an instruction book.
When I have to deal with the US government why should a corporation be involved?

 
Can you imagine what a government created Turbo Tax would look like?  :X

 
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The more I think about it, the more I like it.  Why should the government develop a product when they can get it free through legislation? 

To answer my own question, maybe to help those over $66,000 but I care less about us particularly considering there are other free options.

Now we just have to figure out how to get more than 5% of the 70% eligible to actually use them.

 
The more I think about it, the more I like it.  Why should the government develop a product when they can get it free through legislation? 

To answer my own question, maybe to help those over $66,000 but I care less about us particularly considering there are other free options.

Now we just have to figure out how to get more than 5% of the 70% eligible to actually use them.
I don’t understand this thinking at all.  The government should be trying to make our lives better.  Why shouldn’t it offer us something for free instead of making us pay for it?

 
Is TurboTax magic?  Why do you assume this?
Because i have worked on projects like this for the govt as well as observed their lack of ability with the simplest of technologies. They attempted something like this in the early 2000s. Couldn't get even a beta out. zero confidence they'd be able to keep up year after year

 
Because i have worked on projects like this for the govt as well as observed their lack of ability with the simplest of technologies. They attempted something like this in the early 2000s. Couldn't get even a beta out. zero confidence they'd be able to keep up year after year
I don’t personally believe that you’re right, but even if you are, why not try?  If people think it’s worth it to them to pay TurboTax they will.  If people want to use the free government program they’ll do that.  How is that worse than what happens now?

 
Yeah I guess the private companies set it up so you only have to pay to efile the state form not the federal form.  Maybe my beef should be with the states.  Damn you federalism!
I don’t know how all the states work.  My state (Illinois) allows you to file for free on their website.  Very easy. 

 
I don't care, there should be no additional cost to anyone to pay the government.  
Yeah, I honestly never thought of it like this but I mostly agree.  However, I don’t care if that free is TurboTax or FedTax or something else.  I do find it odd that the government would pass legislation that prohibits another part of government from doing something that they allow private companies to do.  Just seems weird.

 
I don’t personally believe that you’re right, but even if you are, why not try?  If people think it’s worth it to them to pay TurboTax they will.  If people want to use the free government program they’ll do that.  How is that worse than what happens now?
Why would you want to reinvent the wheel just for the government to run it?  Again, all the services like Turbo Tax, Tax Cut etc are required to provide a free service that well over 70% of the country is eligible to use (though less than 5% of them actually use it).  The simple math of cost/benefit alone is enough to see that it's not smart.  Think about all the infrastructure they'd have to set up just to run the application on.....and all in an effort to give someone a service that already exists.  It's completely illogical IMO.

 
I don’t personally believe that you’re right, but even if you are, why not try?  If people think it’s worth it to them to pay TurboTax they will.  If people want to use the free government program they’ll do that.  How is that worse than what happens now?
And to follow up....don't believe which part?  That they tried a beta and it failed miserably?  That's absolutely true.  I doubt many even know about it, that's how poor a product it was.  Only reason I know about it is because one of my first contract jobs was helping set up the databases this thing was supposed to run on.

 

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