03 April, 2013

Filing taxes: It shouldn't be so hard | The Economist

Filing taxes: It shouldn't be so hard | The Economist:
N 2010 a panel created by the White House estimated that American taxpayers spend 7.6 billion hours and some $140 billion a year keeping the IRS off their backs. According to the Washington Post over 80% of taxpayers use software or pay someone to file their taxes. The national taxpayer advocate, a sort-of in-house IRS watchdog, once said, "If tax compliance were an industry, it would be one of the largest in the United States." But of course, it is an industry.

It is an industry made up of accountants and companies like H&R Block and Intuit, which makes the TurboTax software used by many Americans. And it is an industry that, according to ProPublica, has worked hard to keep the IRS from preparing your tax returns for you for free. Intuit, for example, has spent millions lobbying the federal government, opposing bills that would allow the IRS to send you pre-filled-in returns (the agency already has most of your relevant information) and supporting bills that would ban the practice.