![]() (H&R Block, whose tax filing product H&R Block At Home competes with TurboTax, declined to discuss return-free filing with ProPublica. Versions of TurboTax for individuals and small businesses range in price from free to $150. TurboTax products and services made up 35 percent of Intuit's $4.2 billion in total revenues last year. Roughly 25 million Americans used TurboTax last year, and a recent GAO analysis said the software accounted for more than half of individual returns filed electronically. In its latest annual report filed with the Securities and Exchange Commission, however, Intuit also says that free government tax preparation presents a risk to its business. In an emailed statement, Intuit spokeswoman Julie Miller said, "Like many other companies, Intuit actively participates in the political process." Return-free programs curtail citizen participation in the tax process, she said, and also have "implications for accuracy and fairness in taxation." (Here is Intuit's full statement.) government through a big government program." It is also a member of the Computer & Communications Industry Association (CCIA), which sponsors a " STOP IRS TAKEOVER" campaign and a website calling return-free filing a "massive expansion of the U.S. Intuit argues that allowing the IRS to act as a tax preparer could result in taxpayers paying more money. The company also lobbied on bills in 20 that would have barred the Treasury Department, which includes the IRS, from initiating return-free filing. The disclosures show that Intuit as recently as 2011 lobbied on two bills, both of which died, that would have allowed many taxpayers to file pre-filled returns for free. ![]() Although the lobbying spans a range of issues, Intuit's disclosures pointedly note that the company "opposes IRS government tax preparation." Intuit has spent about $11.5 million on federal lobbying in the past five years - more than Apple or Amazon. Conservative tax activist Grover Norquist and an influential computer industry group also have fought return-free filing. Well, for one thing, it doesn't help that it's been opposed for years by the company behind the most popular consumer tax software - Intuit, maker of TurboTax. "It's doable, feasible, implementable, and at a relatively low cost." "This is not some pie-in-the-sky that's never been done before," said William Gale, co-director of the Urban-Brookings Tax Policy Center. The concept has been around for decades and has been endorsed by both President Ronald Reagan and a campaigning President Obama. ![]() The idea, known as "return-free filing," would be a voluntary alternative to hiring a tax preparer or using commercial tax software. Advocates say tens of millions of taxpayers could use such a system each year, saving them a collective $2 billion and 225 million hours in prep costs and time, according to one estimate. The government-prepared return would estimate your taxes using information your employer and bank already send it. It's already a reality in Denmark, Sweden and Spain. ![]() You'd open up a pre-filled return, see what the government thinks you owe, make any needed changes and be done. Imagine filing your income taxes in five minutes - and for free. It cited the article below as well as another story we did on how a rabbi, civil rights activist, and others were misled into supporting Intuit’s campaign. Her office also released a report on the tax industry’s opposition to simpler filing solutions. Elizabeth Warren proposed a bill yesterday to allow free government-prepped returns. She called Intuit “a staunch opponent to government prepared tax returns.” Meanwhile, Massachusetts Sen. “Our legislative, our policy position on that hasn’t changed,” said spokeswoman Julie Miller. So this week, we called Intuit and asked if they still oppose free, government-prepared returns. Update, April 14, 2016: In 2013, we detailed how Intuit has lobbied against allowing the government to estimate your taxes for you.
0 Comments
Leave a Reply. |