Her title says the IRS "Should Administer Free File Program." Uh, it already does! TurboTax and other software are part of it, but the IRS has the most control. One might say the IRS's handling of Free File is lax (ProPublica did), but Robinson's blog-post casts no blame on the IRS.
Relying on ProPublica's reporting about an audit of Free File, she writes: "For tax year 2018, TurboTax and other companies funneled 14 million taxpayers who were eligible to file their taxes for free to paid services and reaped at least $1 billion in profits from the practice."
The TIGTA audit actually says: "Based on these results, TIGTA estimates that more than 14 million taxpayers met the Free File Program criteria and may have paid a fee to e-file their Federal tax return in the 2019 Filing Season" [my bold]. Robinson's assertion -- they did pay -- is clearly false. The audit does not say how many of the 14 million did pay; it only says they were eligible to file free. Robinson magically turns "may have" into $1 billion of real money!
She writes: "The truth is, if the government provided free tax filing, it would cut into the profits TurboTax makes from people trying to follow the law and pay their taxes."
A larger truth is the government does provide free tax filing -- via the Free File program, Free Fillable Forms, and VITA/TCE with many, many places staffed by volunteers all over the USA. Also, there is paper filing! What ProPublica and ITEP apparently fail to understand is that many people much fear the IRS, and they are willing to pay somebody else a few dollars to lessen that fear. Many also lack the confidence to go it alone and are willing to pay due to that.
She writes: "TurboTax has repeatedly proven that it exists to maximize profits for shareholders, not provide free tax-filing services for lower-income families."
Nonsense. TurboTax is a product; Intuit is the company. It's stunning how she sweeps Intuit paying its employees, suppliers, and lenders under the rug. No business exists primarily to provide free stuff. Why does she believe Intuit should do so? Does ITEP exist without donations and a huge tax break? ITEP's Form 990 shows that Robinson doesn't work for ITEP for free.
Robinson gives a link to a Washington Post op-ed -- Elizabeth Warren wants to make it simpler to file taxes. Good for her. Much of Warren's proposed legislation is about corporate, not personal, income tax. Anyway, it does include: "If Warren gets her way, the IRS would be required to offer an online service at no cost, one that would permit filers to do their taxes without the involvement of outside tax prep businesses." Sorry, WP opinion writer, the IRS already does that -- it's called Free Fillable Forms.
The Washington Post op-ed also says: "That an entire industry can make millions by complicating a civic duty is infuriating." Sorry, WP opinion writer, Congress and the IRS made it complicated, not TurboTax, H&R Block, etc.
She writes: "TurboTax has repeatedly proven that it exists to maximize profits for shareholders, not provide free tax-filing services for lower-income families."
Nonsense. TurboTax is a product; Intuit is the company. It's stunning how she sweeps Intuit paying its employees, suppliers, and lenders under the rug. No business exists primarily to provide free stuff. Why does she believe Intuit should do so? Does ITEP exist without donations and a huge tax break? ITEP's Form 990 shows that Robinson doesn't work for ITEP for free.
Robinson gives a link to a Washington Post op-ed -- Elizabeth Warren wants to make it simpler to file taxes. Good for her. Much of Warren's proposed legislation is about corporate, not personal, income tax. Anyway, it does include: "If Warren gets her way, the IRS would be required to offer an online service at no cost, one that would permit filers to do their taxes without the involvement of outside tax prep businesses." Sorry, WP opinion writer, the IRS already does that -- it's called Free Fillable Forms.
The Washington Post op-ed also says: "That an entire industry can make millions by complicating a civic duty is infuriating." Sorry, WP opinion writer, Congress and the IRS made it complicated, not TurboTax, H&R Block, etc.
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