IRS Reforms Free File Program
Justin Elliott and Paul Kiel (via Hacker News):
But the success of TurboTax rests on a shaky foundation, one that could collapse overnight if the U.S. government did what most wealthy countries did long ago and made tax filing simple and free for most citizens.
For more than 20 years, Intuit has waged a sophisticated, sometimes covert war to prevent the government from doing just that, according to internal company and IRS documents and interviews with insiders. The company unleashed a battalion of lobbyists and hired top officials from the agency that regulates it. From the beginning, Intuit recognized that its success depended on two parallel missions: stoking innovation in Silicon Valley while stifling it in Washington.
Justin Elliott and Paul Kiel (via Hacker News):
The email correspondence sheds light on a pivotal moment for the future of Free File in the fall of 2018: An expert body called the IRS Advisory Council (IRSAC) had spent months investigating the program. It was preparing to publish a blistering report concluding that the IRS’ “deficient oversight and performance standards for the Free File program put vulnerable taxpayers at risk.”
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The emails are striking for what they lack: no counterproposals or efforts by IRS officials to push for a better deal. Less than two weeks after the industry proposal, the IRS official who oversees the program, Ken Corbin, signed a new memorandum of understanding.
Justin Elliott and Paul Kiel (via Hacker News):
The IRS announced significant changes Monday to its deal with the tax prep software industry. Now companies are barred from hiding their free products from search engines such as Google, and a years-old prohibition on the IRS creating its own online filing system has been scrapped.
Previously: