| Aha, here's the actual interesting bit: The intensity of industry opposition to CalFile has not gone unnoticed in Washington, D.C. In February, IRS commissioner Mark Everson told Congress that he was reluctant to set up an IRS direct e-file system in part because of the bruising battle he witnessed in California...And that leaves federal taxpayers with little prospect of a direct-to-government e-filing system anytime soon...In fact, the industry already ran Big Brother-themed ads in California when tax authorities there were setting up CalFile, a direct e-filing system for state taxes. Lenny Goldberg, the head of the California Tax Reform Association, says Intuit is leading the charge against direct e-filing. But looking at https://www.ftb.ca.gov/file/ways-to-file/online/calfile/inde... , it looks like I can file my taxes for 2020 via CalFile, so what is this about then? ReadyReturn? Well, according to https://priceonomics.com/the-stanford-professor-who-fought-t...
There is one program in America, however, that provides some taxpayers with completed tax returns. Since 2007, around 80,000 California taxpayers each year have paid state income taxes this way under a program called ReadyReturn. ReadyReturn survived corporate lobbying for one reason: Joe Bankman decided to make easy tax filing his personal mission, and he spent $30,000 to hire a lobbyist to counter lobbying by Intuit, the maker of TurboTax software. but here's something more interesting: Since 2015, the tax preparation industry has persuaded lawmakers to include a line in the annual appropriations bill that bars the IRS from offering pre-populated returns to taxpayers. The Financial Services and General Government Appropriations Bill approved by the Senate last month extends that ban another year. The codification of Free File in the Taxpayer First Act and the extended ban on pre-populated returns in the appropriations bill are steps in precisely the wrong direction. |
I think the popular counter argument is worth knowing. The TurboTaxes of the world argue that if the Government just sent you a pre-filled out form they could mess up many of them & you would possibly overpay if you didn't do your due diligence. This tends to get support from those who like to argue in favor of ideas such as "smaller govt" & "govt is inefficient compared to businesses where the capitalism market will pick the winners". Obviously both of these ideas are highly controversial.