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IRS successfully launches their own free Direct File - some of my fellow 'murcans are eligible (sh.itjust.works)

submitted 10 months ago by [email protected] to c/technology

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For your simple[r] tax needs: https://directfile.irs.gov

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[–] [email protected] 0 points 10 months ago (1 children)

The IRS presented them to the public as a "free option" for years, knowing they were not free.

The only time they're not free is if you don't meet the requirements for the Free File Program or you try to use one of TurboTax's services that aren't part of the Free File Program.

I actually used TurboTax for years before they left the Free File Program (supposedly because it was too restrictive in what they could charge for), and I never had to pay a cent. I've since moved on to other tax sites that are still part of the Free File Program, and I've still never had to pay anything.

[–] Burn_The_Right 1 points 10 months ago* (last edited 10 months ago) (1 children)

Most people who tried to use the program were deceived by Intuit. Intuit settled numerous lawsuits for their lies. Their expensive settlement is why Intuit left the program. Here's a relevant exerpt from an Ars Technica article on the topic:

Meanwhile, the federal government and US states have taken action against Intuit for its allegedly deceptive promises of "free" tax filing to lower-income taxpayers. In a May 2022 settlement with all 50 US states and the District of Columbia, Intuit agreed to pay $141 million in restitution to millions of consumers.

Intuit also agreed in the settlement to stop its "free, free, free" ad campaign. The firm was accused of steering customers away from the IRS Free File program that is free to 70 percent of taxpayers while using misleading ads to promote a separate "freemium" TurboTax product that isn't actually free for most people.

Separately, the Federal Trade Commission's chief administrative law judge ruled last month that Intuit violated US law with deceptive advertising and should be forced to stop promoting TurboTax as "free" unless all conditions imposed on the free offer are immediately and conspicuously displayed to consumers.

[–] [email protected] 0 points 10 months ago* (last edited 10 months ago) (1 children)

I would argue that the IRS wasn't at fault here, though. Like the article said, people were steered away from the Free File Program, so people having to pay wasn't a fault of the Free File Program but rather a fault of Intuit's deceptive practices of marketing their alternative freemium versions of their software.

[–] Burn_The_Right 1 points 10 months ago* (last edited 10 months ago)

The IRS was very aware of it as it had been going on for years. There were numerous complaints and lawsuits that the IRS were made aware of as they happened.

Intuit spent millions annually lobbying anyone who would accept their money and were permitted to remain part of the free-file program for years with their famously deceptive software.

The IRS and lawmakers have all been complicit in allowing this to happen for an extended period of time.

Just curious, why are you defending Intuit or the IRS? It seems an odd position to take. I've never encountered someone with this position before.