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Except the tax preparation industry must be taking a significant enough cut to make it lucrative to spend money lobbying. Is that cut smaller than the total ext
by sanderjd 8y ago
Except the tax preparation industry must be taking a significant enough cut to make it lucrative to spend money lobbying. Is that cut smaller than the total extra tax that would be paid due to mistakes in the auto filing system? I'm skeptical.
- astine 8y agoTax preparers usually file federal taxes for free while charging a fee to file state and local taxes. That's where they make their money.
- rhacker 8y agoSo basically even if the IRS wanted to create a system, they would be competing with a free system anyway? And the IRS wouldn't go out and do a system for each state.
- sanderjd 8y agoI suspect (but don't know) that they make more off of the various up-sells for people with more complex filing situations. Also, the free filing is marketing. It's their foot in the door. If something like rapid return happened, they would lose that strategy.