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IRS E-File Letter

I got a letter in the mail today from the IRS encouraging me to e-file my taxes. Although it would be easier to e-file, I have steadfastly refused to do this over the past few years because they charge for this service. Why should I pay to make their lives easier? (Surely it is a cost savings for them when people e-file.)

But wait! Myth number one about e-file, according to this letter, is that 96 million taxpayers are eligible to use this service for free. Wait again! What about the other 200 million?

This reminds me of the Ticketmaster “TicketFast” program, where they charge you $1.50 to print your tickets immediately, but don’t charge at all to mail them to you. How is it better for Ticketmaster to mail the tickets? They have to be printed out, put in an envelope and mailed. The other way, they don’t have to do anything.

Instead of trying to convince me to spend money to save them some, shouldn’t the government be improving their service? How about creating a TaxCut / TurboTax clone and putting it on the IRS site and allowing people to use it for free? I don’t know much about the IRS, but it seems like this would be the best way to get tax information in a standardized format that would really cut costs.

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5 Responses to “IRS E-File Letter”

  1. Nigel Says:

    What is actually e-file\’s purpose and its standardization? Well, good information!

  2. Administrator Says:

    I’m pretty sure this was comment spam, but I’m not sure. Is it some new reader that grabs part of the post and somehow automatically tries to make it a cohesive sentence?

    (There was a link to a broken page that I removed.)

  3. John S Says:

    The IRS wnated to set up a tax-prep program for web use, but it was seen as a threat to the “competive marketplace”–meaning software companies complained and the IRS is explicitly limited by Congress as to how much they can provide. There was an article in the WSJ a couple years ago about e-file and IRS effots and the polictics of it, but I no longer subscribe to wsj.com, so I can’t look it up for you.

  4. John S Says:

    Sorry for the double post, but an even larger block to the IRS making e-file more accessible was the lobbying by accounting organizations and tax prep companies. The IRS isn’t able to pursue lot of ideas that would seem obvious to improve service when it potentially reduces revenue for established interests.

  5. Administrator Says:

    Yeah, I figured that the money made by tax prep companies would have something to do with it, but that doesn\’t really help me much. ;o)

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