Why do I need an intermediary to e-File?

I just finished preparing my Federal and California 2012 income tax returns. I used TurboTax for the purpose. I still hate it, but it was useful when one number had to be changed late in the process. Now it is time to file.

TurboTax e-files a single Federal return for no extra charge. It charges about $20 to e-file a California return. What does it actually do for that charge? Why am I not allowed to file for myself. Supposedly, it would be simpler for the Feds and State to take a digital version of my forms rather than to scan paper forms. With relatively modern computers, they could even get fax copies to substitute for paper.

Because the first filing is free, most people would not question just what service is performed by e-filing. TurboTax is in no position to guarantee the veracity of the return or its signatures.

In my paranoia, I think that there is a lobby that has managed to restrict e-filing to the Tax Preparers Guild. It may even be possible for these filers to glean useful information off of my return.

I am thinking of just being ornery and just sending paper copies of my return.

Reply to
Salmon Egg
Loading thread data ...

You're basically paying for the program to calculate the CA tax.

Reply to
removeps-groups

That makes no sense. The program calculates the CA tax whether I file electronically or not. The only thing is that I am so POed by the time I am done, that almost anything seems better.

TurboTax even sucker punched me at the end. I could not copy and paste the FTB address onto an envelope file. I had to carefully retype every character.

Reply to
Salmon Egg

I don't think that would be "ornery". For me it's just common sense.

I e-file my federal return since the cost is included in the cost of the software. (I use Taxcut, not Turbotax, but the principle is the same). I've always paper-filed my state returns, declining to pay the $20 fee (but paying the USPS fee for confirming delivery). I'd have to be getting a pretty large return to make paying the e-filing fee worthwhile. And, as long as I have proof of delivery, I see no advantage to me from e-filing.

I think the intermediary probably has to verify that there are not structural errors in the return. Why that can't be done by the software itself is beyond me.

Reply to
Ron Rosenfeld

On Saturday, March 30, 2013 11:54:11 AM UTC-6, Salmon Egg wrote: Assuming Intuit is on the ball, they should be pricing their offerings to what the market will bear. The price they charge you to e-file your return is based on their belief that $20 is a competitive price and the market will pay it and maximize their profit vs charging some other amount. The price has nothing to do with anything else.

Reply to
Alan

you are not being paranoid. Search this topic and you will see that Intuit spends a lot of lobbying money.

Why can the IRS not send out pre-filled and pre-calculated tax forms for the majority of filers, based on their W2 and 1099 information, as is done in certain other countries? The taxpayer can always decline and file their own return if necessary.

The tax preparation industry, including CPAs, tax planners, etc. just love the job security.

Reply to
Pico Rico

You can efile online yourself for free - see

formatting link

Reply to
bo peep

They could, but it would be later in the year since they don't have everything by April 15. Of course, that date didn't come down from Moses.

A bigger question to me is why can't you e-file directly through the IRS website like you can in at least three states? (I suspect there are a lot more, but I've had personal experience with only three.)

The software lobby has been mentioned as a prominent player, and no doubt it is. But I really don't think that the ability to punch numbers into the IRS site would cut down much on software sales, plus it would relieve them of having to deal with the e-file process.

Phil Marti VITA/TCE Volunteer Clarksburg, MD

Reply to
Phil Marti

On Sat, 30 Mar 2013 13:54:11 EDT, Salmon Egg wrote Re Why do I need an intermediary to e-File?:

I have been using tax prep software since 1987 (long before eFile was invented) and have never yet eFiled, even though I wouldn't have to pay a charge for it. Since I seldom get a refund of more than $50, there is no advantage to it for me and I like being able to see exactly what is being sent.

The only advantage to the tax payer that I can see with eFile is that if you are due a large refund, you can get it faster.

Reply to
Vic Dura

What would the price be if you could do it yourself. I guess my real question is: What prevents me from e-filing. I have a computer. I have internet. I have a fax. If there were use for a data modem for a direct telephone connection, I would have that as well. I used to have that before internet.

It is such nonsense that breeds conspiracy theories.

Reply to
Salmon Egg

Maybe Turbotax shouldp price their products differently. If you want to be able to calculate state taxes then buy that state module up front, and then state filing is free. Perhaps they want to make cost look dirt cheap so exclude the extra fees. But someone mentioned that you can buy the federal cost, print out the state return, and mail it in. So then I don't know why they charge so much. They must surely have to comply with state regulations, but $20 seems a bit much. Remember that printing is around 5 cents a page, and if there are lots of forms (likely as you have to include the first two pages of 1040), it could be $1.50 to mail, and another $2 or so to make it certified.

Reply to
remove ps

This is strange... I see this one reply, but my old reliable newsgroup server (Eternal September, nee Motzarella) did not deliver any of the original messages in the thread to my newsreader. A quick glance at Google Groups shows the full thread. Maybe just me, maybe not.

Anyway, you CAN efile for free in CA. Go to ftb.ca.gov, look for Calfile and ReadyFile. I have used the former with success, back when I still used TurboTax.

It is very ignorant to assume that the software and other infrastructure that makes efiling possible is free of cost. The taxpayers have funded a level of free filing (see previous paragraph), but why should Intuit and other vendors do so?

Who do you think keeps the servers and routers and software (including tax law changes every year) and backups and security and 24x7 access going? Gnomes? No, there are actual human beings whose employment includes making your life more convenient, should you choose to be an Intuit (or whoever) customer.

Reply to
Mark Bole

Nothing beyond your own capabilities prevents you from becoming an efile transmitter yourself. The information you need is all out there via taxpayer-funded internet servers.

The fact that you don't have to efile, but you are still whining about the option of paying for it, speaks for itself.

Indeed, there is very little use for a data modem and a "direct" telephone connection these days, as you state. I'm almost at the point where I will charge a client if they want to send me a fax.

Reply to
Mark Bole

Not just you. I'm only getting 3 posts from the eternal-september server via the Thunderbird client and Google Groups has 14 posts. ____ Alan

formatting link

Reply to
Alan

I do not mind paying for service. Intuit not only takes grief away, but it also shoves some down my throat.

Just one:

I go to forms and select 1040.

I have to mouse to the lower right corner to drag the window in order to expose the entire window.

I find line 8a and double click on it to look at interest entries.

I then select 1040 again.again instead of near line 8a. TurboTax does not like page-down.

That means I have to use another mouse search to get to line 8b only to find that I go back to Schedule B which I just left.

Reply to
Salmon Egg

A few days ago, PBS had a story about a denial of service war between spammers and anti-spammers. It is believed that the volume affected much of the internet not directly involved.

Reply to
Salmon Egg

I don't think that's related.

If you read the eternal-september.support group, you'll see that the operator of the service reported that one of his servers was down, and he was waiting for the datacenter operators to respond to his restart request.

Reply to
Barry Margolin

Use another program or use pencil and a four function calculator if you don't like TurboTax.

Reply to
Bill Brown

Getting dangerously into politics here, but what the hell...

Why I can't stand the idea you mention:

1) It'll be an undeserved windfall for the US govt. Out of ignorance, fear, inertia, etc. too many people will blindly click "OK on the pre-calculated return and will overpay.

2) It'll continue the trend toward mentally decoupling people from their tax burden. Instituting withholding was a huge jump in that direction and this would continue to worsen it. Not a direction the country should be moving further in.

I have no love for the tax software industry -- it's fine with me if the IRS wants to offer free web filing like CA, MA, etc. do for state returns.

But I am vehemently against the pre-calculated return idea.

Reply to
Rich Carreiro

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.