(no subject)

[arethinn]

Does anyone have any idea why the IRS hasn't set up their own internal e-filing system for federal tax returns (like the Franchise Tax Board has in California) and instead requires you to use an outside company? And what's more, why list so many of them? Since I qualify for the free e-filing I have to look through like thirteen different websites to see if there may in fact be any difference between them that would lead me to choose one over another. I mean wtf?

Edit: oopsz opines that there is probably legislation specifically preventing the IRS from doing this. (What a dumb idea. There oughta be a law! er...)

Comments

[arethinn]

Well, apparently people still use outside services in California because the FTB website lists both CalFile (the internal one) and the websites of several companies... I don't think that's a valid reason.

By "not allowed" do you mean Federal law? If so, why does it not apply in the states?

[ungarsfragile.livejournal.com]

Well, all it says here (http://www.irs.gov/efile/article/0,,id=98294,00.html) is:

NOTE: IRS cannot compete with private enterprise and does not offer free e-file software or direct filing. A number of companies, tested and approved by the IRS, do offer free use of their software and free filing, while others will charge nominal fees.

I'm guessing it's a specific legislation preventing the IRS from competing with the tax industry. State tax collection agencies are probably not affected.