[geeks] tax software rant

[Doug McLaren]

On Tue, Apr 17, 2007 at 08:05:36PM -0400, Phil Stracchino wrote:

| I buy tax software on a CD, prepare my return on my computer behind my
| firewall (the software vendor never seeing the data), and submit my
| return to the IRS as the law requires, either electronically or by mail.

Actually, if you submit your return electronically, it goes through
the vendor of your tax software, who then submits it to the IRS.

Now, the IRS could collect the information directly, but I'm guessing
that they were lobbied really strongly by Intuit, HR Block and others
to keep them in the $$$ loop.  $15 per pop to accept a relatively
small .xml file (either it's xml now, or they're pushing for it to be
xml ... either way, doesn't matter), run some checks on it, then
submit it to a similar application at the IRS (perhaps as a batch with
other returns) and then send an email when it all works?  Where can I
get me a job like that?!?!?

So even then, they're getting your personal information.  

I guess if we want this to change what we need is some massive
identity theft to occur and be tracked back to Intuit's servers, where
a cracker hacked their computers to copy all the good bits of all
returns submitted through them.  Or have him replace all the bank
account numbers of the really big refunds with his own accounts at the
Intuit computers and then submit that ... THEN the IRS/Congress might
take the tax return software vendors out of the loop.  Maybe.

| I don't do my taxes online.

Well, if you submit electronically, part of it's done online.

Now, I'm with you on not trusting a web site to do my taxes, but my
concerns are more that I'm worried that the web site might go away at
some point.  I assume that they let you save a copy of your tax return
on your computer (.pdf format seems a given, but also a copy of the
data file so it can be reloaded?) but without software to manipulate
that data file, it's not too useful.  What if they decide to do away
with the web site?  I feel much better with a CD in my hand that I can
file away with my tax return printout, data file and other paperwork.

-- 
Doug McLaren, dougmc at frenzied.us
Knowledge is Power
Power Corrupts
Study Hard, Be Evil