4 ms·
Yes. That's exactly what I'm talking about. The bill would extend the program that's already in place and has been since 2001. Right now it's currently set t
by pfranz 7y ago
Yes. That's exactly what I'm talking about. The bill would extend the program that's already in place and has been since 2001. Right now it's currently set to expire in 2020. The specific language is “to not enter the tax preparation software and e-filing marketplace.” which doesn't prevent them from developing their own solution--only launching it while the non-compete is in place.
I'd love for the IRS to offer their own solution. I just don't see it happening under this Congress and I think it would be difficult even if Democrats took control of both houses. Congress has starved the IRS funding for years and the US government hasn't been particularly good at developing web services.
I'm not sure if this is a permanent ban because I haven't read the bill, but I think it was exaggerated in the news. I don't see why it couldn't be reversed as part of a serious effort to roll something out.
The bill was HR 1957 https://www.congress.gov/bill/116th-congress/house-bill/1957?q=%7B%22search%22%3A%5B%22taxpayer+first+act%22%5D%7D&r=1&s=1 https://www.congress.gov/bill/116th-congress/house-bill/1957...
The program is called Free File https://en.wikipedia.org/wiki/Free_File https://en.wikipedia.org/wiki/Free_File
and the tax prep companies are part of the Free File Alliance https://en.wikipedia.org/wiki/Free_File_Alliance https://en.wikipedia.org/wiki/Free_File_Alliance
- Wowfunhappy 7y agoWhy does Congress need to pass a new law to prevent the IRS from breaking a non-compete contract? Does normal contract law not apply?
- pfranz 7y agoI'm not sure I follow you. The current law was passed in 2015 and carries it through 2020[1]. I could be mistaken, but if no action is taken the program would expire on both sides. I'm not quite sure what the tax companies get out of free filing other than the non-compete from the IRS. The tax companies hide their free program, so they're not getting upsales. In 2007 they agreed not to offer loans against tax returns. [1] https://www.accountingtoday.com/news/irs-renews-deal-for-free-tax-software https://www.accountingtoday.com/news/irs-renews-deal-for-fre...