Intuit has recently come under fire for misleading taxpayers. Taxpayers who qualified to file for free were instead led to a paid option.
Did you know, Intuit (along with other tax preparation software companies) have a free file option so the IRS does not have to offer it? The argument is that tax preparation software companies would lose clients if the IRS provided said service. On the other hand, wouldn’t the companies just be losing customers that only used the free file option anyways?
The other argument is that it is bad for one place to handle all the avenues of tax services (i.e. preparing returns, determining tax payments/refunds, and whether an audit is necessary). Yet, the IRS is a nonprofit government agency which is subject to laws/regulations. Intuit is a for-profit company. Also, there are 36 countries that already have free filing systems (e.g. Germany, Japan, UK).
About two years ago, a bill was introduced to simplify the tax preparation process. The Tax Filing Simplification Act would require the IRS to establish an online free filing system for all taxpayers. Just like the systems we already see in many other nations.
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