(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

[m0usegrrl.livejournal.com]

it's because the IRS's database is the Legacy System From Hell. it's so old and bloated and kludgy from years of patching instead of rebuilding that it's nigh unto impossible to integrate an interactive web-based filing system into it. [i've got friends who work for the IRS, which is how i know this.] plus they're cheap bastards -- why build it themselves when there are all these third-party systems out there?

[ungarsfragile.livejournal.com]

I believe they aren't allowed to compete with private industry.

If the IRS offered their own service, who would use an outside one, right? Would you believe the tax service companies have lobbyists?

[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?

[arethinn]

I figured it had to boil down to "logistical nightmare", but if the FTB can manage it (which would be the next largest tax-collector in the nation, I would think)... *shrug*

[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.

[heartssdesire.livejournal.com]

I wouldn't bother with most of them. Turbo tax or HR Block are free and both work fine, and unless you make lots of money you probably qualify for the free versions. A lot of the lesser known ones that IRS lists have weird requirements or aren't really free, and it's probably not worth bothering looking at them all.

[arethinn]

I mean, even after eliminating the ones where I am not in the right state or make too much money, there are still thirteen left in the list where I do qualify for free federal filing, and I have no idea what would tell one apart from another. It would be so much simpler if there were just the one.

Two things.

[aki-dreaming.livejournal.com]

1. First of all, I have no idea.

2. Second of all, TV'S FRANK AND DR. FORRESTER! OMG MST3K love.

[twopiearr.livejournal.com]

the FTB, of course, has the advantage of a comparatively much smaller population and a local hotbed of geek consultants, which are not unheardof but not exactly a dime a dozen in washington.