Lobbying by Tax Preparers Helps Keep Tax Day Complicated

SeaBreeze

SeaBreeze

Endlessly Groovin'
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Life only gets harder, more complicated and more expensive for the average American citizen it seems. More here.


In theory, this process could be a lot simpler. But helping Americans file their taxes, a basic function of citizenship, is big business — H&R Block, for instance, pulled in $3.1 billion last year — and many of the same companies Americans turn to for help with their taxes lobby hard to make sure Americans keep needing that help.

Since 1998, companies that help Americans file their taxes, and groups that represent those companies, poured more than $40 million into influencing Congress, according to data compiled by the nonpartisan Center for Responsive Politics.

The bulk of that spending came from Intuit, the maker of TurboTax, and H&R Block. Both companies dramatically increased their lobbying budget in the last decade, with Intuit passing $1 million annually in 2006 and committing more than $2 million every years since 2008. H&R Block has spent more than $2 million every year since 2013.
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I agree with that. The Federal gov't could make tax preparation very easy online. They've almost got it that way now. Just short a few steps so you have to go somewhere else, unless you like to do some arithmetic (which I don't mind). Probably more secure, too. They could transfer a couple of those Pentagon/State Dept. programmers to IRS. It's the same way with our state (GA).

Now if you want to call this a conspiracy, then, yes, I believe in conspiracies. :)
 
Another link concerning the high cost of filing taxes http://www.thefiscaltimes.com/2016/04/18/Outrageous-Reason-It-Costs-So-Much-File-Your-Taxes
What surprised me was that there is an agreement in place whereby the IRS promises to "not enter the tax preparation software and e-filing services marketplace". Really??? That is how the tax prep companies get away with charging their ridiculously high rates. This has got to change!

 

I'm lucky that my husband has always done our taxes, he used to do his parent's taxes too.
 
I don't see any problem. Before I retired I always used a good friend CPA and paid $300 to $500.When I retired over 20 years ago I started doing them my self using TURBOTAX and have never paid more than $50. Of course my tax situation was more complicated before retiring due to Business Expenses, Investment Expenses, Home, rentals etc.
Personally, I don't feel that Tax Prep fees are excessive.
 
Presently, the IRS Tax Codes are over 75,000 pages....most of which are tax dodges and loopholes for the wealthy and corporations. With that kind of nonsense to wade through, I suppose there is some justification for high tax prep fees. For most people, taxes should be fairly simple...."How much did you make, how much did you spend, if you have anything left, send it in"....at least, that's what it seems like.

H&R Block and TurboTax have reasonably priced programs that fit the vast majority of people. I've used H&R for years, and I usually pay about $40 for their CD to do both the Federal and State, and E-file both. There is a Free online program from TaxAct that allows a person to file basic returns for free...but I'm a bit leery about putting my financial info on their "cloud".
 
My policy is if I have a plumbing, electrical or auto problem then I'm willing to call anyone who knows more than I. I used to do taxes in my former life & quit when it started getting more complicated. But as I find now, most of the seniors are in the same position I'm in, very few deductions, no dependents & a few investments to list. It's simple for me & I will help if asked but so many are willing to pay the obscene fees to have them done by the professionals, peace of mind I guess. My 'can do' attitude must come from my cultural upbringing.
 
Those involved in the business of taxes are in a cornucopia of self perpetuation and worse than a buggy whip maker union.
 
Hubby has a program and last year, the IRS sent us a letter saying we owed them $2700.

One call to our lawyer fixed that. The IRS sent us a check for $3200, and that was that.
 

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