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> > So what does the IRS get out of this? > Not having to do the hard work of making a usable tax filing system and providing phone support for users. Since t
by AdieuToLogic 7y ago
> > So what does the IRS get out of this?
> Not having to do the hard work of making a usable tax filing system and providing phone support for users.
Since the IRS is the Single Point of Truth[0] for federal tax collection, by definition any commercial entity which offers tax preparation must conform to the IRS's tax filing system. Which, BTW, is used by millions of people via paper-based filings.
> A good theory for government is to always do the minimum -- do only the part that can only be done by the government and let private companies compete to do everything else.
While you may feel this to be a "good theory for government", many do not. Some consider a government's role to also include ensuring equitable treatment of all peoples within their domain.
> The IRS is doing roughly this, by providing the e-filing API. The surprising thing is that TurboTax has so few competitors.
TurboTax has many competitors[1]. Which may explain why they did their best to help write the rules (per the article):
> For a decade and a half, the IRS program to allow most Americans to file their taxes for free has been floundering.
> Now, IRS emails obtained by ProPublica help show why: The agency has allowed the tax preparation industry to write the rules.
0 - https://en.wikipedia.org/wiki/Single_source_of_truth https://en.wikipedia.org/wiki/Single_source_of_truth
1 - https://www.bls.gov/ooh/business-and-financial/accountants-and-auditors.htm https://www.bls.gov/ooh/business-and-financial/accountants-a...