[HN Gopher] Tax prep companies: $90M lobbying against free tax-f...
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       Tax prep companies: $90M lobbying against free tax-filing
        
       Author : everybodyknows
       Score  : 302 points
       Date   : 2023-09-02 17:32 UTC (5 hours ago)
        
 (HTM) web link (www.opensecrets.org)
 (TXT) w3m dump (www.opensecrets.org)
        
       | reso wrote:
       | It's interesting to think about the harm done by Intuit and other
       | companies' lobbying on this file, and compare it to the language
       | that people like Ben Horowitz have used to describe Bill
       | Campbell, Intuit's chairman in this period.
       | 
       | To hear it from people like Horowitz (in his book), Campbell is
       | one of the best people he's ever met; one step removed from a
       | saint. But the man's actions in stopping free online filing to
       | become a reality in the US have caused incredible harm.
       | 
       | It's easy to confuse a nice person with a good person.
        
       | dave333 wrote:
       | Maybe a compromise that would keep both sides happy is for the
       | government free file program to apply only to those who owe tax,
       | but if you want a refund you have to pay for tax prep. Would
       | maximize both tax and tax prep company revenue.
        
         | notyourwork wrote:
         | No. That's absurd, deductions for using the tax system to my
         | advantage should not cost me money. e.g. Donations, mortgage
         | insurance, credit for solar and home efficiency.
        
           | dave333 wrote:
           | Then file your own taxes no need to pay for convenience.
        
         | saxonww wrote:
         | Why do we need to keep the tax prep software industry happy and
         | maximize their revenue?
        
           | dave333 wrote:
           | Why have any capitalism? Because the alternatives like
           | communism are disastrous. If we want a complex tax system tax
           | prep companies serve a useful function.
        
             | wahnfrieden wrote:
             | [flagged]
        
             | chucksmash wrote:
             | Thats quite a leap to go from "why should we care about
             | keeping these particular companies happy?" to "why do you
             | hate capitalism?"
        
             | madeofpalk wrote:
             | I promise you there is a middle ground between govt.
             | propping up a valueless industry, and outright communism.
             | 
             | ...wait.
             | 
             | Anyway, plenty of other capitalist countries have
             | significantly easier filing.
        
             | landemva wrote:
             | [flagged]
        
               | Clubber wrote:
               | And that's hyperbole.
        
               | landemva wrote:
               | Hyperbole is "speaking or writing that makes someone or
               | something sound bigger, better, more, etc. than they
               | are". https://dictionary.cambridge.org/dictionary/english
               | /hyperbol...
               | 
               | IRS can lien assets, sieze assets, and imprison people.
               | IRS is hiring armed employees.
               | https://www.jobs.irs.gov/resources/job-descriptions/irs-
               | crim...
        
               | Clubber wrote:
               | Let me guess, you think forcing children to have an
               | education is also slavery.
        
               | landemva wrote:
               | Being forced into paying the federal government a portion
               | of wages because a person happened to be born within the
               | federal government land mass is taking the fruits of a
               | person's work. Slaves are born into the slave owner's
               | plantation. Don't pay and be punished by the slave
               | master.
               | 
               | https://dictionary.cambridge.org/us/dictionary/english/sl
               | ave...
               | 
               | Going to school, at no charge to student with free lunch,
               | is probably preferrable to working in the mines or
               | factory at age ten. If you are concerned about
               | government-run education, you can home school your
               | children.
        
             | cumshitpiss wrote:
             | [dead]
        
             | lossolo wrote:
             | If their product is better than the free government app,
             | and users find the government app not good enough, they
             | will win anyway. If it's not better, then they will not. I
             | don't see a problem here.
        
         | shkkmo wrote:
         | Why do we need to give leaches like Intuit anything? We want to
         | minimize the income of companies like that.
         | 
         | The tax code and filing process should be optimized for
         | efficient use of government resources and tax payer time. There
         | should be zero consideration for maximizing the profit of
         | leaches like Intuit. If anything, we should be working to
         | minimize the profit of such unethical companies.
        
           | dave333 wrote:
           | And what happens if your taxes are so complex you can't file
           | and get a refund or even if it takes you a week to figure
           | them out. I'm all for simplifying the tax code but we have
           | what we voted for.
        
             | GrinningFool wrote:
             | Then you pay someone to help, of course. That's the value
             | add they can offer - no 'compromise' to appease them
             | required. If they don't offer enough value to enough
             | people, then they don't get to stay in business. No reason
             | for the government to artificially sustain these businesses
             | if they can't offer enough value without government aid.
        
               | dave333 wrote:
               | The complex tax code created by the government is the
               | only reason they exist in the first place.
        
               | GrinningFool wrote:
               | True. You keep saying that we have the tax system we
               | voted for - that was true, once. But what we have had for
               | years now is the tax system that the lobby is preserving
               | for their own benefit.
        
               | dave333 wrote:
               | The checks and balances system makes it hard to change
               | things e.g. guns. But not impossible, e.g. Obamacare.
        
             | madeofpalk wrote:
             | Tax accountants still exist in countries where self filing
             | is easier. And they're still accessible to the every-
             | person.
        
       | SergeAx wrote:
       | My friends from States for years encouraging me to move to the
       | US. I am not doing it because something is really fucked there.
       | 
       | I am currently is a tax resident of Serbia, which is really a
       | third world country, and I mean it though I love the country very
       | much. No offense. I don't have to file my taxes here, my primary
       | income is automatically reported to the local tax authority. All
       | I have to do is declare any extra income and file tax return
       | form, if I am eligible,via government web service. The most
       | painful process was obtaining a physical electronic
       | key/certificate to access said website. Which is impressive by
       | itself: it is literally government issued Yubikey alternative,
       | accessible by any country's resident.
        
       | conqrr wrote:
       | If any billionaire wants to start real philanthropy, this would
       | be a good start. Spend $100M or whatever to kill these companies
       | and let free-filing happen.
        
         | yieldcrv wrote:
         | I bet if the people had a simple way to simplify taxes, they
         | would attack the billionaire and philanthropy, having a more
         | effective way to understand what tax codes those entities use
         | as well
         | 
         | there isn't really a benefit in offering these tools when the
         | alternative is another 100 years of "taxing the rich" by
         | raising _income_ tax on the upper middle class
        
         | nickjj wrote:
         | Let's Encrypt for taxes. I'd love to see the day.
        
       | kepler1 wrote:
       | Maybe we should have as a public policy that when a certain topic
       | is of sufficient public interest, and we observe some amount of $
       | registered for lobbying, the government should be able to
       | allocate a proportional amount of funds to have policymakers
       | receive competent advice from other sides of the argument.
       | (distributed according to some sound independent judgement)
       | 
       | It seems that we're just leaving a lot of things to who can
       | outgun in $ the other side lately. And sound government will
       | never win in this race.
        
         | [deleted]
        
       | bastard_op wrote:
       | No one can claim ignorance of the tax filing industry, mostly
       | Intuit and HR Block, paying to block any such notion of easy IRS
       | filings since the Internet and ecommerce took off. If IRS
       | standardized e-filing for citizens, it'd remove what, 70% of
       | Intuit's market value overnight, crippling net worth for how many
       | employees and investors of such a fragile industry on the edge of
       | collapse should _this_ happen? Now it _is_ , finally happening.
       | 
       | Finally some common sense took hold to let someone in government
       | see beyond themselves the lobbying cash and veritable bribery
       | that single-handedly kept Intuit their ilk as behemoths in the
       | industry with nothing more than our politicians willfully
       | overlooking the industry extortion of every common US citizen.
       | 
       | Sadly Intuit and like won't die overnight as sadly most silly
       | accountants only know Quickbooks, same as people only know
       | Microsoft Office or Windows itself, but it'll be fun to see them
       | decimated soon once their services are no longer necessary to buy
       | by de facto simply to pay taxes.
       | 
       | Hell, I'm sure if I tell ChatGPT they're a really good
       | accountant, they'd gladly do it for me soon enough too.
        
       | underlipton wrote:
       | Also health insurance companies lobbying against single-payer
       | healthcare.
       | 
       | Also telecoms lobbying against municipal broadband.
       | 
       | Also banks and investors lobbying against regulation and
       | oversight.
       | 
       | Also firearms manufacturers lobbying against control amidst an
       | epidemic of suicides and other gun-based violence.
       | 
       | This seems to be a trend.
        
         | doubt_me wrote:
         | [dead]
        
         | Clubber wrote:
         | >Also firearms manufacturers lobbying against control amidst an
         | epidemic of suicides and other gun-based violence.
         | 
         | They do that, but the largest power block of the 2A is voters.
        
         | Spivak wrote:
         | People who run businesses being opposed to government coming in
         | and messing with them is a trend in the way that firefighters
         | being found near fires is a trend.
         | 
         | I guarantee you won't be happy the first time something you've
         | been doing for 20 years (like cooking on a ventilated gas
         | range, smoking menthols, using a leaf blower, not using afci
         | outlets) is suddenly declared illegal and you have to switch at
         | your own expense and to something worse for no gain.
         | 
         | Like what do you _expect_ someone 's reaction to be? "Thank you
         | Mr. Government for completely erasing my market by providing
         | the goods/services I sell to people for 'free' but paid with
         | tax dollars which I can't possibly compete with."
         | 
         | It doesn't mean that you shouldn't make the law or that it's
         | not a net good for society but people will be pissed, they will
         | push back any way they can, and will be right to do it.
        
       | pfannkuchen wrote:
       | Would it be fair to nationalize the companies at an amount
       | approaching market value? From the company's perspective, they
       | did solve a real problem that was previously created by the
       | government and it took a lot of time and resources to do it. The
       | government changing the rules would be kind of a rug pull on
       | those companies, even if the new rules are objectively better
       | than the old ones.
        
       | ghouse wrote:
       | For most tax payers in the US, the government has all of the
       | necessary information to calculate tax liability through W-2,
       | 1099, and other filings from third parties.
       | 
       | A pragmatic approach might be to use this information, populate a
       | tax form, send out for signature confirming accuracy and
       | completeness. The balance of the tax payers could continue to use
       | Intuit, H&R Block and others to handle their circumstances.
       | 
       | There is a contingent of Congress that does not want to make tax
       | preparation easier because it aligns with their narrative that
       | taxes are bad. The more painful tax preparation is, the more
       | sympathy they find with this narrative.
        
         | tshaddox wrote:
         | > There is a contingent of Congress that does not want to make
         | tax preparation easier because it aligns with their narrative
         | that taxes are bad. The more painful tax preparation is, the
         | more sympathy they find with this narrative.
         | 
         | And yet we have paycheck withholding, which seems to be a
         | relatively complex system and is also the thing that makes
         | _actually paying_ your taxes easy.
        
           | candiddevmike wrote:
           | Estimated withholdings are even worse IMO, especially for
           | variable 1099 income.
           | 
           | "How much should I pay?"
           | 
           | "Enough"
           | 
           | "What if I don't pay enough"
           | 
           | "We'll fine you"
           | 
           | "What if I pay too much?"
           | 
           | "We'll refund you, in a year"
        
           | Guvante wrote:
           | That isn't what paycheck withholding is at all.
           | 
           | Paycheck withholding guarantees you pay your taxes.
           | 
           | Can't forget to file if you already paid all your taxes ahead
           | of time.
        
             | googlryas wrote:
             | The US system is pay as you go, so it is just paying taxes
             | on time, not ahead of time. Tax day is just the date when
             | all your accounts are supposed to be settled up for the
             | year.
        
             | ethbr1 wrote:
             | Also, it shifts the responsibility for the _mechanics_ of
             | income tax payment from individuals to businesses.
             | 
             | Which... I can see an argument for. Especially when coupled
             | with regular payments vs end-of-year.
             | 
             | It's silly for everyone to individually have to think about
             | "How do I get these dollars to the IRS?" all during the
             | year.
        
         | Waterluvian wrote:
         | In Canada I push a button in my tax app to populate everything
         | from the government database. I then add the things they don't
         | know about like donations, make some choices about my RRSPs,
         | and then file. Maybe ten minutes?
         | 
         | One year I totally screwed up and they fixed it for me, giving
         | me a considerably larger return than I filed. So I'm really
         | happy that auto button exists now.
        
           | tredre3 wrote:
           | Data access is a good step, but it would be nice if the gov
           | provided tools to do a declaration online. Of course the
           | Provinces would need to get on board.
           | 
           | I don't like relying on third party apps. Especially that
           | they're now all cloud based so they keep a copy of all your
           | financials and it sucks. Turbotax even does a credit check
           | (via equifax) on me once a year for god knows what reason...
        
           | jonas21 wrote:
           | It's a similar level of difficulty in the U.S unless you have
           | a really complicated tax situation. All the major tax apps
           | integrate with the payroll companies, banks, and brokerages,
           | so it's just a few clicks to authorize it to import your
           | data.
           | 
           | I used to do this and never spent more than 10 or 15 minutes
           | on taxes either.
        
             | underlipton wrote:
             | You underestimate the number of people who a) work for
             | crappy businesses that screw up payroll, b) don't have a
             | bank account, and/or c) traded stocks with Robinhood/Webull
             | or traded crypto last year.
        
               | jonas21 wrote:
               | That's irrelevant to this discussion.
               | 
               | a) If they screw up payroll and the numbers reported to
               | the government are wrong, you'd have to correct that even
               | if the government sent you a pre-populated form (and if
               | they screw up payroll, but the numbers are still right,
               | then that's also what gets imported into the tax
               | software).
               | 
               | b) If you don't have a bank account, you didn't earn
               | interest from the bank, and there's nothing to report.
               | 
               | c) Robinhood, Webull, and Coinbase all integrate with
               | TurboTax. If you were trading crypto without using an
               | exchange, then yeah, that'll be harder to report. But
               | this will be equally hard regardless of whether the
               | government sends you a pre-populated tax form (which
               | won't include these trades).
        
           | jessriedel wrote:
           | I found the Canadian process much closer to the US process
           | than what you describe. "Everything populating from
           | government databases" didn't happen. I entered in stuff from
           | my T4 slip by hand. Some financial firms linked to TurboTax,
           | some didn't, and even the ones that did took almost as long
           | to get working as doing it by hand.
        
           | anothermoron wrote:
           | [dead]
        
           | Insanity wrote:
           | Which tax app is that?
        
           | maccard wrote:
           | In the UK it happens automatically for the vast majority of
           | people. You don't even need to think about it.
        
             | gerdesj wrote:
             | PAYE (Pay As You Earn) is automatic for all employees.
             | Anything more complicated involves a P11D ie "benefits".
             | 
             | Self assessment nowadays gets all P60 details pre filled
             | in. I run a closed company with two other directors and 20
             | odd employees. My tax affairs are pretty simple - I don't
             | do anything fancy. It takes me abut 30-60 mins to fill in
             | the HMRC SA questionnaire online. I get a tax calc at the
             | end and I cough up my tax. Dealing with shares etc is
             | pretty straightforward because there is statutory reporting
             | - ie each year you get a standard form declaring all
             | relevant amounts and what to do.
             | 
             | Taxation in the UK is pretty easy to deal with unless you
             | want to take the piss, in which case you don't have a leg
             | to stand on.
             | 
             | I've been on the receiving end of a HMRC audit and I don't
             | recommend it. Bizarrely I came out better off when they
             | found some additional things I could claim for, which more
             | than offset my cock up that caused the audit, including the
             | fine! That was for a former small business I ran (pre IR35)
             | and I had an accountant, that I promptly fired for obvious
             | reasons.
        
               | EduardoBautista wrote:
               | The US is also "pay as you earn" and automatically gets
               | deducted from salaries. For most people working as
               | employees, the tax return is just for you to confirm your
               | numbers with the government's, specify any deductions if
               | necessary, and see if you owe any extra or are entitled
               | to a refund.
               | 
               | I am honestly surprised that learning how to fill out the
               | IRS form is not part of the high school curriculum.
               | 
               | The 1040 form is only two pages long:
               | 
               | https://www.irs.gov/pub/irs-pdf/f1040.pdf
               | 
               | The software to make this isn't too complicated. This has
               | more to do about being able to legally distribute it
               | since an open-source solution could have been distributed
               | already, but there is too much liability in doing so.
               | 
               | If you want to add e-file to the software, you have to be
               | approved by the IRS and that's where the
               | lobbying/corruption comes into play.
        
         | zemnmez wrote:
         | in the uk, most pay tax by an even simpler method, Pay as You
         | Earn (PAYE). the taxes are all filed by the employer, and the
         | online website allows taxpayers to add anything else
        
         | robertlagrant wrote:
         | > There is a contingent of Congress that does not want to make
         | tax preparation easier because it aligns with their narrative
         | that taxes are bad.
         | 
         | Is this why the current president hired 80000 new IRS agents
         | instead of making a simple system that presents this
         | electronically for confirmation?
        
           | azernik wrote:
           | Yes. It is literally illegal for him to make that simple
           | system without Congressional approval.
        
           | morpheuskafka wrote:
           | It was 80,000 employees, not agents (Revenue Agents or CI
           | Agents), the total includes IT, customer service, return
           | processing/mailroom, legal research/appeals, HR, etc. across
           | the entire organization.
           | 
           | Fun fact, the IRS has people that go out to oil refineries
           | and make sure the transfers are being reported accurately and
           | tax-free diesel is dyed correctly. They have people who
           | advise the State Department on negotiating tax treaties.
           | 
           | Additionally, the total was an estimate of how many employees
           | could be hired through 2031, including backfilling positions.
           | Over half of all IRS employees are currently eligible for
           | retirement, so significant departures are expected in the
           | coming years.
        
           | underlipton wrote:
           | No, but there is a contingent of Congress that does not want
           | to make tax preparation easier because placating tax prep
           | companies aligns with their campaign fundraising strategy. I
           | assume that our president was one of them when he was a
           | senator, and continues to be friends with legislators who are
           | included in that contingent.
        
         | VoodooJuJu wrote:
         | >There is a contingent of Congress that does not want to make
         | tax preparation easier because it aligns with their narrative
         | that taxes are bad. The more painful tax preparation is, the
         | more sympathy they find with this narrative.
         | 
         | Had me up until here. This is what I'd dismiss as a conspiracy
         | theory.
        
         | MathMonkeyMan wrote:
         | > There is a contingent of Congress that does not want to make
         | tax preparation easier because it aligns with their narrative
         | that taxes are bad. The more painful tax preparation is, the
         | more sympathy they find with this narrative.
         | 
         | I'm primed to believe this because I'm a registered Democrat
         | raised in that kind of household. Is it true, though? The logic
         | makes sense, but how could we really determine whether a tax-
         | bashing neoconservative actively protects labyrinthine tax
         | practices in order to justify adjacent political ends? I'm more
         | likely to conclude that it doesn't happen.
        
           | ibizaman wrote:
           | That's honestly the right mindset. Our brain loooves
           | conspiracy theories. In a way, it's more comforting to us to
           | think we are lead by very intelligent mischievous people than
           | to realize most of us just do an ok job, have imposter
           | syndrome, etc.
        
             | hooverd wrote:
             | It's not a conspiracy theory when they literally come out
             | and say it.
        
               | yieldcrv wrote:
               | [flagged]
        
           | javajosh wrote:
           | It's not proof, but it's telling: it's the same reason sales
           | tax is not included in the price of an item, unlike VAT in
           | Europe. They want you to know how much you're paying.
           | 
           | This happens in other spheres. Two that come to mind are
           | death penalty cases, where opponents play for delay after
           | delay, and divorce court, which is designed to be horrible
           | for everyone, and therefore limit the number of divorces. I'm
           | sure something similar happens to abortion clinics when there
           | is a sizable resistance to them.
        
           | ethbr1 wrote:
           | I would break US tax arguments down along a few axes.
           | Individual political identities line up all over on different
           | ones.                  - Progressive rate vs flat        -
           | Detailed vs simplified        - Policy via taxes vs outside
           | of them        - Low taxes vs high taxes + benefits        -
           | Use tax (e.g. sales) vs income tax        - Labor tax vs
           | capital tax        - Gov-cooperative filing vs adversarial
           | 
           | My read on how we got to where we are is (1) all politicians
           | love byzantine tax codes, because it allows sneaking favors
           | in without repercussions + (2) people love getting money.
           | 
           | Consequently, we get a convoluted tax code that advantages
           | special interests who can lobby, sold and balanced with
           | enough direct benefits to people that they're happy.
           | 
           | Which... is a complicated sausage, but doesn't seem like the
           | worst way to resolve a fundamental tension?
           | 
           | And then everyone stares at the resulting Rorschach blot of
           | de facto tax codes and sees what they want to see.
           | 
           | "Look, it's ridiculously complicated! That's why we need a
           | simple, flat rate tax!"
           | 
           | "Look, it's ridiculously complicated! That's because the
           | corporations/wealthy are trying to screw you over!"
        
             | yieldcrv wrote:
             | most people cant receive a benefit beyond the standard
             | deduction or a poverty tax credit so they have no need to
             | have an idea of ... everything else
        
           | LapsangGuzzler wrote:
           | > how could we really determine whether a tax-bashing
           | neoconservative actively protects labyrinthine tax practices
           | in order to justify adjacent political ends?
           | 
           | We rarely have the ability to truly determine a politician's
           | motives in a concrete and objective way because many of the
           | decisions they make are not transparent due to lobbying and
           | other forms of influence.
           | 
           | Fundamentally, the American right argues consistently that
           | the government does not represent the interests of the people
           | and actively works to render the government ineffective.
           | 
           | Whether they intentionally use taxation as a means to achieve
           | political gains or not, it's pretty undeniable that taxation
           | causes resentment when the government appears to be so
           | ineffective. Ultimately, you're trying to determine if this
           | is intentional or not, which doesn't make that much of a
           | difference.
           | 
           | As Jon Stewart used to ask on his show when trying to assess
           | the motivations of conservatives: are they stupid or evil?
           | Which is just a simpler way of asking: are they being
           | intentional about this or not?
        
           | alistairSH wrote:
           | Reagan believed paying taxes should hurt - the more painful
           | to pay, the more the public would want to do away with taxes.
           | Reagan did soften his stance while in the White House, but
           | the GOP never got on board, even to this day.
        
             | c420 wrote:
             | "As Ronald Reagan once put it, "Taxes should hurt." He
             | meant that when paying the taxes you owe is a painful
             | process, you are very aware that government is taking your
             | money. Then the governor of California, he was resisting
             | the introduction of state-tax withholding, which, he felt,
             | made it too easy for government to take money and too easy
             | for taxpayers to miss what was happening."
             | 
             | https://www.theatlantic.com/ideas/archive/2019/04/american-
             | t...
        
           | c420 wrote:
           | "But in the United States, filing taxes is painful by design.
           | The tax-collection system as we know it is the outcome of
           | three forces: corporate lobbying, a stubborn resistance to
           | borrowing good ideas from other Western nations, and the
           | Republican Party's decades-long campaign against taxation
           | itself." https://www.theatlantic.com/ideas/archive/2019/04/am
           | erican-t...
        
           | orev wrote:
           | You should do some reading about Grover Norquist, his
           | organization Americans for Tax Reform, and the Taxpayer
           | Protection Pledge that most Republican politicians are
           | pressured to sign. I think you'll find that your assumptions
           | about what political operatives are willing to do are wrong.
           | 
           | A very large part of the current craziness has been enabled
           | by people so incredulous that nobody would "stoop to such a
           | level" that they ignore the topic completely, only to find
           | out when it's too late that they do, in fact, stoop down to
           | that level and the damage has already been done.
        
           | 0cf8612b2e1e wrote:
           | This Planet Money episode[0] has a few short interview clips
           | with Grover Norquist (author of the conservative Tax Pledge).
           | He said that supporting a Ready Return program would be
           | equivalent to breaking the pledge because it is then easier
           | to raise taxes.
           | 
           | [0] https://www.npr.org/sections/money/2017/03/22/521132960/e
           | pis...
        
         | twoodfin wrote:
         | You don't file a form with the IRS when you get married, have a
         | child, divorce, pay for daycare, spend an unusual amount of
         | income on healthcare, enroll at a local community college,
         | leave your job, switch to selling pottery on eBay, buy a house,
         | inherit money from the death of a relative, ...
         | 
         | We _could_ have IRS forms and the IRS maintaining an expansive
         | database to cover all tax-relevant events and amounts, but that
         | hardly seems desirable.
         | 
         | Federal income taxes are complex. Everyone will trip over that
         | complexity multiple times in their lives, Federally-provided
         | "easy file" or not.
         | 
         | EDIT: Just look at the qualifying criteria for the EITC,
         | simultaneously one of the most important tax credits that many
         | eligible low-income filers miss, and a massive source of tax
         | fraud.
         | 
         | https://www.irs.gov/credits-deductions/individuals/earned-in...
         | 
         | How in the world does the IRS figure out automatically if
         | you're eligible?
        
           | toomuchtodo wrote:
           | All of this can be provided to the IRS through a crud
           | interface in your IRS account and it's entirely desirable to
           | make paying taxes as easy and cost efficient as possible.
           | 
           | Automate what can be automated, make what cannot
           | straightforward.
        
             | twoodfin wrote:
             | The claim was:
             | 
             |  _For most tax payers in the US, the government has all of
             | the necessary information to calculate tax liability
             | through W-2, 1099, and other filings from third parties._
             | 
             | They do not. And I think most Americans would recoil at the
             | idea of giving them what they would need to compute
             | liability under the bulk of current law.
             | 
             | So we're really talking about a "public option" for tax
             | filing software. The Treasury Department is giving it a
             | try, we'll see how it goes.
        
               | toomuchtodo wrote:
               | My comment was specifically to rebut this weak claim you
               | put forth:
               | 
               | > We could have IRS forms and the IRS maintaining an
               | expansive database to cover all tax-relevant events and
               | amounts, but that hardly seems desirable.
               | 
               | If it's tax relevant, why would they not be collecting
               | and then storing a record of it for the relevant period
               | of time? That is their responsibility: to store, process,
               | and maintain this _tax-relevant_ information in order to
               | compute taxes or refunds due.
        
               | twoodfin wrote:
               | Again, look at the EITC eligibility. It includes
               | information like which partner is supplying more than 50%
               | of the support in a household. Primary residence
               | qualification has a similar requirement. The IRS does not
               | track anyone's primary residence from year-to-year
               | without the taxpayer telling them, and doesn't assume
               | they know. This is a _good thing_.
        
               | toomuchtodo wrote:
               | But they _could_ , trivially, using homestead exemption
               | public record data wrt primary residence. EITC can be an
               | attestation online. I prefer systems that prevent tax
               | fraud. If you want to prevent institutional overreach,
               | that's a governance issue, not "better they just can't
               | find the fraud."
        
             | makapuf wrote:
             | In France you have a basic way of pre declaring such
             | things, then your "simple" money sources are pre declared
             | (salary, dividends and interests, also public interest
             | donations you did) then the situation is carried over
             | unless you go and change it. You often mostly just have to
             | look that everything seems alright (it generally is) and
             | click OK.
        
           | ineptech wrote:
           | > You don't file a form with the IRS when you get married,
           | have a child, divorce, pay for daycare...
           | 
           | Er, yes you do? I'm pretty sure all of the things you listed
           | are explicitly included in the 1040 and associated tax forms
           | we have today. Daycare expenses, for example, are supplied in
           | form 2441: https://www.irs.gov/forms-pubs/about-form-2441
           | 
           | This seems like pure FUD. The claim isn't that easy file
           | would work for all people, the claim is that the present
           | system is needlessly opaque in a way that benefits only the
           | tax prep middle-men. More generally, it's really hard to
           | claim that the US can't possibly accomplish something that
           | many other countries already do.
        
             | twoodfin wrote:
             | The claim was that the IRS had all this information for
             | most Americans _without_ the content of the 1040's they
             | have to file today.
        
               | ineptech wrote:
               | You're interpreting "tax liability" to include every
               | possible deduction, when I think it's perfectly clear
               | that OP was referring to taxable income before
               | deductions.
        
         | matdehaast wrote:
         | This is literally how it works in South Africa. It's called
         | auto assessment. You get sent a form to confirm all correct and
         | click submit online. 99% it has all the correct information
        
         | babyshake wrote:
         | Perhaps this is just in my imagination, but it seems that there
         | is an element to the byzantine tax process where it's desirable
         | on the part of the government for people to feel that they have
         | likely made some mistakes at some points with taxes, and this
         | produces the feeling that the government has "kompromat" and
         | therefore they should be careful and make sure to not do
         | anything to get any unwanted attention. Of course, there is an
         | analogy to be made with religion and the Catholic Church in
         | particular.
        
         | lockhouse wrote:
         | Unpopular opinion, but I think a lot of the taxes we pay are
         | excessive and bad. We desperately need a way to cut the pork
         | out of spending bills.
        
           | cpuguy83 wrote:
           | [flagged]
        
           | rqtwteye wrote:
           | That's totally orthogonal to making tax filing simpler. One
           | has nothing to do with the other.
        
             | candiddevmike wrote:
             | Land use tax only ticks all those boxes
        
             | makapuf wrote:
             | Indeed. Dividing every rate by ten keeps the same
             | complexity.
        
             | lockhouse wrote:
             | I disagree. Cutting all the useless corporate subsidies and
             | pork would allow us to simplify tax filing and the tax code
             | all in one fell swoop. Then we could automate a huge chunk
             | of the IRS and reallocate their employees to other agencies
             | that will serve the tax payers better. It's a win for
             | everyone except corrupt politicians and their corporate
             | masters.
        
               | ToucanLoucan wrote:
               | It's completely unrelated. The tax code can be as complex
               | or simple as desired for any number of other reasons. The
               | government already knows the vast, vast majority of
               | information required to determine what's owed, and we
               | know that because they catch you when you screw it up.
               | Obviously we can have processes for appeals or amendments
               | to an individual's return.
               | 
               | Nevertheless, do absolutely agree with getting rid of
               | corporate subsidies and pork, and simplifying the tax
               | code, if for no other reason than to close the
               | innumerable number of loopholes abused by corporate
               | entities and the wealthy.
        
               | lockhouse wrote:
               | A simple tax code is a simple one for a computer to
               | calculate.
               | 
               | 1. Input the taxpayers's income from all taxable sources.
               | 
               | 2. Lookup what tax bracket you're in based on that
               | income.
               | 
               | 3. Calculate the appropriate tax bill based on that
               | percentage.
               | 
               | 4. Subtract that from whatever has already been taxed out
               | of their payroll for the year.
               | 
               | 5. Bill them or refund them appropriately.
               | 
               | No humans would need to be part of the process if it were
               | that simple, saving money and making errors less likely.
               | Also, the simpler the tax code is the less computing
               | hours it will require to complete the entire country's
               | taxes, meaning faster refunds and less energy usage.
               | Simpler taxes are even better for the environment!
        
               | landemva wrote:
               | A simple tax code is to eliminate the federal personal
               | income tax. No federal personal income tax would
               | eliminate W-2 paycheck wiithholding, giving every W-2
               | employee an effective take home pay increase.
               | 
               | People not filing personal federal income tax is green.
               | 
               | Banks not sending people yearly interest statement is
               | green.
               | 
               | Companies not withholding personal federal income tax
               | from paychecks uses less CPU and fewer papers so it is
               | green.
               | 
               | Keep or tweak corporate taxes and fees as deemed
               | necessary. And each State can do whatever.
        
               | lockhouse wrote:
               | That sounds even better.
        
               | moregrist wrote:
               | You are describing a typical 1040EZ filing.
               | 
               | I'm glad we're in agreement that most people shouldn't
               | have to file this.
        
               | ghaff wrote:
               | There's no 1040EZ any longer I believe. But, yes,
               | anything that simple should be able to default filed as a
               | very simple 1040.
        
               | gamblor956 wrote:
               | It sounds so simple when some random guy on the internet
               | says it! The professionals who have worked on this for
               | decades clearly have no idea what they're doing!
               | 
               | 1) People have lots of taxable sources, and many of them
               | aren't digitized. This is especially true for people
               | whose primary source of income is not W2 employment.
               | 
               | 2) Computers can figure out the inner workings of stars,
               | the alignment of molecules in proteins, and all sorts of
               | other things that requires massive amounts of computing.
               | If you're going to use a computer to calculate taxes, you
               | don't need a simple tax code. Indeed, the tax code should
               | be as complicated as possible to efficiently and fairly
               | calculate taxes for each individual and corporation. But
               | on that note, the calculation of income taxes is
               | relatively straightforward. (The IRS is able to verify
               | the calculations of the tens of millions of returns that
               | are filed digitally within minutes.) The issue is, and
               | has always been, data entry.
               | 
               | 3) See #2.
               | 
               | 4) Ignores all the other types of tax payments made
               | during the year...
               | 
               | 5) This is literally how it already works once you send
               | in your tax return.
        
               | lockhouse wrote:
               | The tax code is excessively complex to provide loopholes
               | for the wealthy to use to lower their tax burden.
        
               | gamblor956 wrote:
               | No, it is "excessively" complex because it recognizes
               | that what is fair to one industry or group of individuals
               | isn't necessarily fair to a different group of
               | individuals. What many people think of as "loopholes" are
               | grounded in decades or centuries or pre-income tax
               | financial structures, especially the loopholes related to
               | agriculture.
               | 
               | For example, one of the biggest loopholes in the tax code
               | is the carried interest exception. It created modern
               | Silicon Valley; YCombinator exists solely because of this
               | loophole. Most of the nation regards it as the most
               | blatant subsidy in the tax code, but it is essential to
               | startup financing. How would you feel if they got rid of
               | it?
               | 
               | And the "flat rate" tax rate you propose is a huge
               | subsidy to the wealthy, who derive the most benefit from
               | a stable government and therefore should pay the most to
               | continue it. Conversely, any rate high enough to fairly
               | tax the wealthy would excessively tax the poor and
               | middle-class. This is why we have a progressiv (i.e.,
               | complicated) rate structure.
        
           | Guvante wrote:
           | We will spend $26.1 billion on pork in 2023
           | (https://www.cagw.org/reporting/pig-book). The budget is $6.4
           | trillion.
           | 
           | You wouldn't notice 0.4% lower costs (not to mention we are
           | hugely in a deficit this year so there wouldn't be lower
           | taxes anyway)
        
             | joebob42 wrote:
             | The definition here is a fairly narrow one and doesn't
             | nearly cover what I think of when I think of "pork".
        
               | [deleted]
        
         | rufus_foreman wrote:
         | >> For most tax payers in the US, the government has all of the
         | necessary information to calculate tax liability
         | 
         | A couple years ago, the US government owed me a bunch of money
         | for taxes, I overpaid, it took the government many months to
         | refund that money, and during that period, the US government
         | could not tell me a single thing about where my money was, or
         | what was the status of my return, or where my money was.
         | 
         | Not a single thing, after many hours on the phone, hours and
         | hours, not a single piece of information.
         | 
         | And from your comment, I gather that you want these people to
         | have more power over me, rather than less.
         | 
         | My answer is simple, no.
        
         | ShadowBanThis01 wrote:
         | Yep. The asinine requirement that we regurgitate what has
         | already been reported to the government offends and steals from
         | every U.S. taxpayer.
        
         | nightski wrote:
         | For those people it's pretty automatic as it is, even free.
        
           | ghaff wrote:
           | Yeah, there should be a filled-in form option (where you can
           | make changes) but the reality is that if you have a W-2 with
           | maybe a 1099 or two (with no cost basis complications) and
           | standard deduction, it's really not that complicated today.
        
         | xienze wrote:
         | > There is a contingent of Congress that does not want to make
         | tax preparation easier because it aligns with their narrative
         | that taxes are bad. The more painful tax preparation is, the
         | more sympathy they find with this narrative.
         | 
         | I'm guessing you're making a thinly-veiled reference to
         | Republicans being the ones holding this up. Congress has had
         | Democrat control many times over the decades, they could have
         | pushed this through any time. Perhaps both parties share blame
         | here.
        
           | ghouse wrote:
           | I think the Democrats (Intuit headquarters in California) are
           | primarily to blame here, but they find odd common ground with
           | a portion of the Republican party who want to run up the debt
           | by cutting revenue (while increasing spending).
        
             | boredpeter wrote:
             | Odd common ground is a weird way to say that most democrats
             | are really just conservatives. Both parties bend to the
             | will of big business. Both parties are happy to screw over
             | workers (just look at what Biden did to rail workers).
             | Democrats are happy to screw over real progressives like
             | Bernie Sanders (look at 2016) while doing nothing about the
             | conservatives within their ranks (Joe Manchin).
             | 
             | Conservatives are happy to take lobbyist money and give
             | them whatever they want. Liberal progressive want no money
             | in politics and typically get funding from labor unions.
             | 
             | We need to recognize that both parties support the
             | interests of the ultra wealthy with the exception of a
             | handful of democrats and 3rd party candidates.
        
             | 0cf8612b2e1e wrote:
             | Primarily to blame? One side is in near universal
             | opposition to the idea and the other is
             | ineffective/uninterested at pushing it through.
        
             | tstrimple wrote:
             | You think wrong.
             | 
             | https://www.businessinsider.com/democrats-optimistic-
             | about-i...
             | 
             | > And while Porter, Beyer, Sen. Elizabeth Warren, and
             | others have expressed interest in the free direct-file
             | pilot program, congressional Republicans are speaking out
             | against it.
             | 
             | > In May, the Republican-controlled House Ways and Means
             | Committee published a press release disapproving of the
             | IRS' direction to move forward and create the pilot program
             | after its chairman accused the Biden Administration of
             | "cooking the books" in its study that ultimately
             | recommended such a program be implemented.
             | 
             | > "IRS control of tax preparation is the latest step in
             | Democrats' ongoing efforts to supercharge the agency to go
             | after working-class families, after giving the agency $80
             | billion to increase audits on taxpayers making less than
             | $75,000," said Rep. Jason Smith. "Americans will be
             | powerless when the IRS completely controls the tax filing
             | process from start to finish."
        
               | xienze wrote:
               | Again, at anyone point in the last several decades when
               | Democrats had control they could have pushed it through.
               | Your quotes don't change that reality.
        
               | tstrimple wrote:
               | When have they "had control"? Do you understand how the
               | US legislative process works? Only for a short time
               | during the Obama administration did they actually "have
               | control" and they used that time and political capital
               | passing the ACA. Everything since basically has to be
               | passed via reconciliation because republicans filibuster
               | everything based on some sort of "principle". Take a look
               | at legislation which has been proposed, what the votes
               | look like and what the filibuster record is. This is all
               | very public information. There's no need to pretend this
               | is some fault of the Democratic Party.
        
               | xienze wrote:
               | > Do you understand how the US legislative process works?
               | 
               | Do you?
               | 
               | > Only for a short time during the Obama administration
               | did they actually "have control" and they used that time
               | and political capital passing the ACA.
               | 
               | Why are you arbitrarily limiting the time frame to recent
               | history? A simplified tax filing method could have been
               | introduced at any time in say, the last 50 years. During
               | which time Democrats have had house and senate control
               | many times [0] and the basic reality of the IRS having
               | all your tax info ahead of time has been unchanged (read:
               | simplified tax filing was possible). That they never
               | seized the opportunity to do so is just evidence that
               | they didn't really care to, not that some shadow cabal of
               | Republicans had held them back.
               | 
               | 0: https://www.spokesman.com/stories/2020/jun/25/control-
               | house-...
        
           | lockhouse wrote:
           | [flagged]
        
             | mikeyouse wrote:
             | They probably should have given how hollow "precedent"
             | actually turned out to be when the SC majority decides they
             | want to overturn something but until Roe was overturned, Ds
             | weren't the party running on abortion for the past 20
             | years.
        
               | lockhouse wrote:
               | The Supreme Court overturned Roe because it was a deeply
               | flawed decision. Even former Justice Ruth Bader Ginsburg
               | disagreed with it.
               | 
               | https://www.law.uchicago.edu/news/justice-ruth-bader-
               | ginsbur...
        
               | Guvante wrote:
               | Why did the SC need a Goldilocks decision to overturn it?
               | Examples from since the Constitution were invalid but
               | examples before the Constitution were also invalid.
               | 
               | Ruth did not "disagree with it". She was critical of it,
               | which is very very different.
               | 
               | Specifically she thought that focusing on the doctors
               | right to decide on treatment course was a bad vector to
               | enshrine a woman's control over her own bodily function.
               | 
               | Similarly she saw the rallying cry and felt that if the
               | SC hadn't stepped in a more natural process would have
               | resulted in a similar status over a longer time period
               | anyway.
               | 
               | "If the SC hadn't done something everyone else would
               | have" and " it didn't go far enough" are not "disagreed
               | with".
        
               | lockhouse wrote:
               | That's the problem, Roe was an overstepping of the
               | Supreme Court. A law should've been passed instead. That
               | is why this Supreme Court ruled the way they did. There
               | was nothing in the Constitution or established law to
               | support Roe.
        
             | Guvante wrote:
             | IIRC the only opportunity was Obamacare, which at the time
             | made sense since the abortion was protected by SC
             | precedent.
             | 
             | Unless they eliminate the filibuster (which they don't have
             | the votes to do) the Republicans will always block such a
             | bill.
        
           | wizerdrobe wrote:
           | [flagged]
        
         | xhkkffbf wrote:
         | While it is true that many people have simple taxes, the
         | philosophical shift is huge. It's just much better for the US
         | citizen to be able to tell the government what he or she owes
         | and then put the onus on the government to seek redress. In
         | some countries, the government sends out a tax bill as if it's
         | a fait accompli and the poor citizens just have to take it.
         | 
         | I realize there are some people who just want to frame this as
         | Intuit is just a bunch of greedy people, but they're providing
         | a service just like others. HR Block does offer some
         | competition and it's often possible to get a free version of
         | their software. I've seen some of my neighbors get the free
         | option. It's real.
         | 
         | I like the option to control my taxes. It's worth the extra
         | work.
        
           | doikor wrote:
           | > In some countries, the government sends out a tax bill as
           | if it's a fait accompli and the poor citizens just have to
           | take it.
           | 
           | I highly doubt this happens in any working democracy.
           | 
           | What the government does in those countries is just send the
           | tax form pre-filled allowing the tax payer to make any
           | corrections as they wish. You are just as much in control of
           | your taxes in such a system as the US one but it just has a
           | lot less work for most.
           | 
           | In an authoritarian/etc system you end up paying whatever the
           | government says you have to pay no matter how the system
           | works.
           | 
           | Really if you are living in a country where you can't dispute
           | your taxes when you think the government made a mistake you
           | are living in a failed democracy or authoritarian/dictator
           | system.
        
           | morpheuskafka wrote:
           | That's why the IRS is proposing an automatic preparation
           | option, not "the government sending you a bill." The legal
           | distinction between what their program initially suggests and
           | what you file remains, and is deeply baked into the tax code.
        
         | Beached wrote:
         | how do does the federal government calculate all your
         | deductions? do they have every transaction you make every year
         | on file?
        
       | dang wrote:
       | It's CPS time! Related:
       | 
       |  _IRS moves forward with a new free-file tax return system_ -
       | https://news.ycombinator.com/item?id=36804710 - July 2023 (221
       | comments)
       | 
       |  _IRS tests free e-filing system that could compete with tax prep
       | giants_ - https://news.ycombinator.com/item?id=35950836 - May
       | 2023 (567 comments)
       | 
       |  _Call on the IRS to provide libre tax-filing software_ -
       | https://news.ycombinator.com/item?id=35705469 - April 2023 (129
       | comments)
       | 
       |  _60M Americans have taxes so simple the IRS could do them
       | automatically_ - https://news.ycombinator.com/item?id=35476709 -
       | April 2023 (277 comments)
       | 
       |  _Lobbyists begin chipping away at Biden's $80B IRS overhaul_ -
       | https://news.ycombinator.com/item?id=35381701 - March 2023 (214
       | comments)
       | 
       |  _Intuit pouring money into lobbying amid push for free
       | government-run tax filing_ -
       | https://news.ycombinator.com/item?id=34840039 - Feb 2023 (178
       | comments)
       | 
       |  _IRS builds task force to explore running its own free e-file
       | system_ - https://news.ycombinator.com/item?id=34764952 - Feb
       | 2023 (199 comments)
       | 
       |  _IRS Free File: Do Your Taxes for Free_ -
       | https://news.ycombinator.com/item?id=34462122 - Jan 2023 (247
       | comments)
       | 
       |  _IRS will look into setting up a free e-filing system_ -
       | https://news.ycombinator.com/item?id=32753099 - Sept 2022 (408
       | comments)
       | 
       |  _The IRS could be on the verge of changing the way Americans
       | file their taxes_ - https://news.ycombinator.com/item?id=32550841
       | - Aug 2022 (17 comments)
       | 
       |  _IRS will study free tax filing options_ -
       | https://news.ycombinator.com/item?id=32502321 - Aug 2022 (25
       | comments)
       | 
       |  _TurboTax's fight against free tax filing_ -
       | https://news.ycombinator.com/item?id=31072202 - April 2022 (394
       | comments)
       | 
       |  _Filing taxes could be free & simple. H&R Block & Intuit lobby
       | against it (2017)_ -
       | https://news.ycombinator.com/item?id=30856968 - March 2022 (114
       | comments)
       | 
       |  _FTC sues Intuit for its deceptive TurboTax "free" filing
       | campaign_ - https://news.ycombinator.com/item?id=30846071 - March
       | 2022 (587 comments)
       | 
       |  _Ask HN: How does TurboTax get away with dark patterns?_ -
       | https://news.ycombinator.com/item?id=30409523 - Feb 2022 (122
       | comments)
       | 
       |  _Why do Americans have to pay much to file their tax returns
       | when the IRS knows?_ -
       | https://news.ycombinator.com/item?id=30267361 - Feb 2022 (22
       | comments)
       | 
       |  _Filing Taxes Could Be Free and Simple. But H &R Block and
       | Intuit Lobby Against It (2017)_ -
       | https://news.ycombinator.com/item?id=30185484 - Feb 2022 (18
       | comments)
       | 
       |  _California tried to save the nation from tax filing, then
       | Intuit stepped in_ -
       | https://news.ycombinator.com/item?id=28944200 - Oct 2021 (283
       | comments)
       | 
       |  _The IRS has a big opportunity to fix the way Americans file
       | taxes_ - https://news.ycombinator.com/item?id=28177289 - Aug 2021
       | (12 comments)
       | 
       | --
       | 
       | GOTO https://news.ycombinator.com/item?id=35970518
        
       | jgalt212 wrote:
       | I'm surprised that this number is so low. What a deal these
       | companies get to keep an unnecessary product necessary.
        
         | say_it_as_it_is wrote:
         | Where does 90 million in "lobbying" go such that politicians
         | aren't going directly to prison for bribery?
         | 
         | Answer: https://www.opensecrets.org/news/reports/layers-of-
         | lobbying
        
           | Etrnl_President wrote:
           | I assume wallets.
        
         | lokar wrote:
         | They also have allies in low tax conservatives who seek to make
         | taxes as painful as possible for everyone, including people who
         | are actually getting a subsidy via the tax code.
        
           | [deleted]
        
         | [deleted]
        
         | toomuchtodo wrote:
         | Indeed, it's like medical costs. As you approach death, your
         | price sensitivity for interventions declines to zero (what good
         | is the money when you're dead). But the money won't help, this
         | administration has the will to kill paid tax prep. It's nice to
         | see progress finally getting done.
         | 
         | At least folks on K street are getting some cocktails and
         | steaks out of it.
        
       | [deleted]
        
       | racecar789 wrote:
       | I filed 2022 taxes with FreeTaxUSA. Pricing was very reasonable
       | ($15 total for fed and state combined). The interface was better
       | than I expected for such a low cost service.
       | 
       | Prior to FreeTaxUSA, I used TaxSlayer, H&R Block, and Intuit.
       | Intuit does surprise me by charging roughly the same as a CPA
       | firm but for a "do it yourself" service.
        
         | delta_p_delta_x wrote:
         | You have to _pay_... to file your taxes? Just American things,
         | I suppose...
        
           | wil421 wrote:
           | No you pay to prepare your taxes. Inuit and a CPA have more
           | thorough questions for more complicated tax situations.
           | Nothing stops you from using the paper form and sending it
           | through the mail.
        
             | Lionga wrote:
             | You guys can not just fill out online forms from the gov.
             | to submit taxes? And I thought Germany was bad because it
             | was online but about 5 to 10 pages and then wait 2 months
             | for the agency to check.
             | 
             | Happy I live in Romania now where it is basically 1 form
             | with between 1 (company/cap gains) and 5 (lots of extra
             | income) lines to fill out (and 80% of people don't need to
             | fill anything), submit and get your owed taxes in about 5
             | minutes.
        
               | ndriscoll wrote:
               | We can fill out online forms for free. I do it every
               | year. The service is on the sketchy looking
               | freefilefillableforms.com
               | 
               | For most people just getting paid by an employer, they'd
               | just need to fill out one short form. For more
               | complicated situations, that site has the other forms you
               | need, and some of them are set up to auto-calculate
               | values across forms.
        
           | jabroni_salad wrote:
           | anything and everything that can have a bloodsucking rentier
           | in front of it, does. And they have way more lobbying dollars
           | than us rubes.
        
             | SergeAx wrote:
             | But it doesn't make any sense. I understand renters banking
             | on realty, 'cause there are just so many land and buildings
             | and making more buildings is expensive and complicated. But
             | tax filing is just a software. Nowadays we teach kids in
             | schools to write software.
        
           | 5555624 wrote:
           | No, you don't have to pay to file your taxes. You can pay to
           | hv someone else do your taxes for you. The tax code is so
           | screwed up, that it can be difficult to figure everything out
           | yourself; but, you can. I've always done my own taxes.
           | 
           | The only "automation" I now use is an Excel spreadsheet, put
           | out each year, for free, by Glen Reeves, (https://sites.googl
           | e.com/view/incometaxspreadsheet/home/chan...)
        
           | jmugan wrote:
           | Not only do you pay, you pay taxes on paying (sales tax).
        
           | sli wrote:
           | No, they paid a service to do some of the more fiddly work
           | for them.
           | 
           | I use the same service, but for just federal, and they are
           | upfront about state filings costing $15 rather than
           | surprising you at the end like Intuit/TurboTax.
        
           | Beached wrote:
           | you do not have to pay. you can do it for free by yourself.
           | there is just a lot of papers, and the language used is
           | confusing to people and they choose to get assistance.
        
             | kccqzy wrote:
             | Any person smart enough to work in tech (like the majority
             | of HN community) can teach themselves how to understand
             | that supposedly confusing language and file taxes
             | themselves.
             | 
             | Any person who do not is just valuing their time more than
             | the cost of tax preparation services. FWIW, I only spend
             | about four hours every year doing my taxes myself. Which is
             | less than the time needed to research a tax preparation
             | service, communicate with them, and then check the results.
        
               | Nimitz14 wrote:
               | Do you have investments in stocks and index funds?
        
               | kccqzy wrote:
               | I trade stocks, ETFs, options (mostly section 1256
               | contracts which are easy to report), and I have rental
               | property.
        
           | yodsanklai wrote:
           | I have limited experience with US tax, I lived there only one
           | year. Everybody strongly recommended to have someone do it
           | for me because it's complicated. Turned out it wasn't that
           | complicated. Slightly more so than in my country where
           | everything is pre-filled and you just sign.
           | 
           | I'm probably stereotyping here, but I noticed Americans are
           | more willing to pay for a service, where Europeans are more
           | penny-pinching and don't see why they should pay for
           | something they can do themselves. I guess American love their
           | businesses, where we see them sometimes suspiciously.
        
             | yieldcrv wrote:
             | Americans have stories of the consequences, which are very
             | inconvenient
             | 
             | Your one year of living there exempted you from that
        
               | kccqzy wrote:
               | What consequences? The IRS sends you a nice letter saying
               | you underpaid. You agree with them and pay them. End of
               | story.
               | 
               | It's not like you are using questionable deductions and
               | barely legal maneuvers. Be honest in the first place.
               | Tell them you made an honest mistake.
        
               | tekla wrote:
               | Ive been audited twice for unrelated reasons. The IRS
               | sends you a letter asking you for additional information
               | and how to submit it. Its not even strongly worded
               | 
               | Very inconvenient, I know.
        
         | ThatPlayer wrote:
         | I've only done my taxes with FreeTaxUSA, but I think I'll have
         | to pay up for TaxSlayer for this year's taxes because
         | FreeTaxUSA don't support a specific state form I need to file
         | to save me money (Annualized income installment method for
         | calculating estimated taxes). I did message FreeTaxUSA about
         | supporting that about 2 years ago because I knew I was going to
         | need it at some point.
        
         | lockhouse wrote:
         | What CPA charges TurboTax prices? I'm talking "standard"
         | TurboTax, not with all the ridiculous upsells that you don't
         | need.
         | 
         | I agree with everyone that it should be a completely
         | unnecessary product, but I don't feel that it is excessively
         | expensive for what it does.
        
           | Beached wrote:
           | not sure what TurboTax charges, but I pay $70 for fed ,
           | state, and local prep and filing.
        
         | hamandcheese wrote:
         | > FreeTaxUSA
         | 
         | > $15 total
         | 
         | Sounds like a scam to me.
        
           | jaktet wrote:
           | In WA it's free because no state taxes. You can pay money for
           | consulting or for being sent a printed or more expensive
           | binded copy of your return. I've used it for 5 years now
           | maybe. So I feel comfortable knowing they have a revenue
           | stream and when I did my due diligence when I started using
           | them a while ago.
           | 
           | I should probably figure out how to get notified if they get
           | acquired or something though.
        
           | boredpeter wrote:
           | The real scam is TurboTax charging over $100 for software
           | that has a fixed yearly cost for development and a negligible
           | cost for distribution and is used by millions.
        
             | delecti wrote:
             | Just wait until you find about digital media distribution.
        
           | teraflop wrote:
           | FreeTaxUSA is free for federal tax returns, and the $15
           | charge for state taxes is displayed right on the home page.
        
         | notyourwork wrote:
         | Last year was first year using FreeTaxUSA.
        
       | mmcconnell1618 wrote:
       | There are about 125 million households in the US. I'm making the
       | assumption that most households are filing a single tax return
       | even if there are two or more incomes. Statistica reports that
       | about 60% of households owe Federal taxes. So the market size of
       | tax filing households is about 75,000,000.
       | 
       | How many small dollar donations would it take to either rival the
       | lobbying dollars of Intuit or create a fantastic free
       | alternative?
        
         | twoodfin wrote:
         | Already happening:
         | 
         | https://apnews.com/article/tax-irs-taxpayers-direct-file-ef2...
         | 
         | I'm not holding my breath on "fantastic".
        
         | [deleted]
        
       | sys_64738 wrote:
       | Intuit and H&R Block deserve to crash and die. They should not
       | exist and should never have existed.
        
         | [deleted]
        
         | dave333 wrote:
         | It's paying tax most people hate. The tax prep companies just
         | make it a bit less painful for a fee. We have the complex tax
         | code we voted for. Simplifying it is great - just don't take
         | away my deductions!!
        
       | say_it_as_it_is wrote:
       | How is $90 Million spent in lobbying activity? Where does the
       | money go?
       | 
       | Answer: https://www.opensecrets.org/news/reports/layers-of-
       | lobbying
        
         | delfinom wrote:
         | The real question is how much money is unreported. Lol
        
         | bmitc wrote:
         | I assume pockets.
        
       | bradley13 wrote:
       | Track that $90 million, and publicize where it landed. Lots of
       | corrupt politicians and regulators. I mean, I'm sure the money
       | has been "legally" spent...just not ethically. Legal loopholes
       | are deliberately left open...
        
         | atlasunshrugged wrote:
         | The vast majority of lobbying dollars already are tracked, I
         | recommend OpenSecrets. I don't think it's any secret that
         | politicians are taking political donations and they (when they
         | retire) or former staffers go to work for them for egregious
         | sums of money.
         | 
         | https://www.opensecrets.org/news/2023/05/turbotax-owner-intu...
        
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