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.