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Comment by runawaybottle | Hacker News Reader

I think their software is good and I usually have a very easy time filing taxes. In comparison, I remember filling out my FAFSA application and that being long ordeal. I don’t think government has the willingness to create a seamless tax-filing experience.

Who is stopping the IRS from making a competing easy to use tax filing website? Are people suggesting Intuit is stopping a good product team from operating within the IRS?

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> Who is stopping the IRS from making a competing easy to use tax filing website? Are people suggesting Intuit is stopping a good product team from operating within the IRS?

Yes. The IRS signed an agreement with a coalition of companies called the Free File Alliance (including Intuit) stipulating that if the latter would provide free filing, the IRS wouldn't create a competing product. [1] Intuit then delisted the TurboTax Free File page from search engines [2] so taxpayers would only be able to find the version that directs users to pay. Only 3% of taxpayers took advantage of Free File products — remember, these are products made by tax prep companies like Intuit — even though over 70% are eligible. [3]

[1] https://www.propublica.org/article/inside-turbotax-20-year-f...

[2] https://www.propublica.org/article/turbotax-deliberately-hid...

[3] https://www.propublica.org/article/free-file-online-tax-prep...

They're a corrupt, profiteering company that does everything it legally can to stop people from filing taxes for free.

https://www.propublica.org/article/inside-turbotax-20-year-f...

But listen to my argument, I’m willing to pay to have an easier time filing my taxes. I’m not going to use IRS’s tool if it doesn’t make it a painless process like TurboTax.

So I ask again, will the IRS make a painless tool? If the answer is yes, but Intuit is lobbying them not to, then I understand your point.

If it’s just about free vs non-free, I could care less. Filing taxes or filling out anything for the government is usually an awful experience and I’m willing to pay to not have to deal with it.

The problem isn't that the IRS won't make a painless tool. The issue is that Intuit actively works to make sure the tax code stays as complicated as possible. Ideally the tax code is so simple that complicated tools aren't necessary for your average filer.

It’s more than that: they stopped the potential practice of the IRS sending you a pre-filled out tax form with what they know that you could then just sign and accept, as is done is many other countries.

Most other first world countries manage to offer some form of return-free filing. In that instance you wouldn't have to fill out anything at all.

>So I ask again, will the IRS make a painless tool? If the answer is yes, but Intuit is lobbying them not to, then I understand your point.

Yes, IRS would have made a painless tool, but for that lobbying.

https://www.nbcnews.com/business/taxes/turbotax-h-r-block-sp...

> So I ask again, will the IRS make a painless tool? If the answer is yes, but Intuit is lobbying them not to, then I understand your point.

Exactly this, yes. It's well documented all over the place, but here are a couple of examples:

https://www.propublica.org/article/filing-taxes-could-be-fre...

https://www.economist.com/democracy-in-america/2013/04/02/it...

In any case, thanks to the folks in this thread suggesting alternatives. I was going to switch to Credit Karma last year, but literally the day after I created an account I woke up to the news that Intuit had bought them.

Edit: I see down-thread someone says they had to spin out the tax-filing portion of the business?

Square acquired Credit Karma's Tax business, probably folding it into CashApp

[1] https://squareup.com/us/en/press/credit-karma-tax

[2] https://www.pymnts.com/news/partnerships-acquisitions/2020/c...

Their software is not very good and a legit accountant costs about $200 if your taxes are relatively simple. Said acccountant will save you more than $200 over TurboTax because TurboTax is not very good — this goes double if you’re in a more complex tax situation. And the accountant is even more seamless since all you do is hand over your paperwork and let them do everything else.

And the great irony is that said accountant is likely using an Intuit product anyway. So it’s not like they don’t have the ability to make good products for the consumer market, they choose not to.

> Who is stopping the IRS from making a competing easy to use tax filing website? Are people suggesting Intuit is stopping a good product team from operating within the IRS?

How about reading TFA before commenting on it? This is literally exactly what it's about.

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