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TurboTax’s fight against free tax filing (slate.com)

804 points by xweb · 1609 days ago · 394 comments on HN

Article summary

The IRS already has most of the information needed to file taxes for the majority of Americans, but instead of providing a free filing service, it tasks citizens with filling out complicated forms. Intuit's TurboTax has been accused of deceiving customers by advertising its services as free when, in fact, many people end up paying for them. An investigation found that TurboTax used code and web design to push people into its paid products, and the company has been sued by the Federal Trade Commission. The case highlights the lobbying efforts of tax preparation companies to prevent the government from offering a free filing service.

Main themes

  • tax preparation
  • Intuit and TurboTax
  • IRS and government regulation
  • alternative tax filing services
  • lobbying and regulatory capture
  • tax complexity and fairness

What commenters say

  • Some argue that the IRS should provide a free tax filing service, as it already has most of the necessary information.
  • Others believe that a consumption tax would be a better system, but it may not be fair to all income groups.
  • The current tax preparation system is seen as intentionally complex and designed to benefit companies like Intuit and H&R Block.
  • Some commenters recommend using alternative tax filing services like FreeTaxUSA or Cash App Taxes, which are cheaper and more user-friendly.
  • There is a concern that the IRS may not be trustworthy if it were to take over tax filing, given its past controversies.
  • Others argue that the benefits of a free government-provided tax filing service outweigh the potential risks and complexities.
  • The use of dark patterns and deceptive advertising by tax preparation companies is widely criticized.
  • Some commenters think that the discussion around tax filing is repetitive and should be limited to new developments.