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Free e-filing for 2001 Taxes?
chipperdog asks: "I know this gets asked every year about this time, but
are there any free alternatives for e-filing tax returns? In previous years,
HD Vest offered free filing, but has
discontinued it this year. I can't justify spending more than $10 for filing a
return that I can send through the post office and IRS data entry people for
approx $0.50-0.75. It would be nice if the IRS would just publish a standard
submission format, so open source developers can work with it.."
Nonetheless, what is proposed might be possible. I worked at an govt. agency in 1995/6 that developed a web interface to allow filing of EZ1040's and 1040a's and from some popular tax programs. We tested end-to-end - from a browser and a tax product into IRS's mainframe systems. Total cost was something like $30 million.
The project was killed by Congress, specifically by Congressman Ted Stevens. He used GAO to nitpik the system to dealth on technical details (PKI wasn't really around back then) and rapid development/procurement practices used by the project. The GAO Report is here. But hell, we did it in six months!
I think IRS is still gun shy on the issue.
This way, whether one prepares his taxes using a software program which then prints out the relevant forms or by filling out forms manually, filing is a simple matter of going to the website, logging in, and typing the data into the forms.
The IRS could then perform a quick check for math errors or other booboos and let the person correct them immediately. If a person is not ready to submit the forms, his information is saved, and the next time he logs in, the forms are restored to the way they were when he was last there. Clicking on the final submit button is equivalent to signing the form and sticking it in the mail.
Seriously, this seems all very do-able to me. The current efiling system where you have to pay someone $50 to do basically the same thing you could do on the web yourself sounds like a scam and a political payoff to the tax accountants.
Sig (appended to the end of comments you post, 120 chars)
I think the nitpicking might have had something to do with the fact that the IRS and the tax preparation and electronic filing/refund anticipation loan people have a symbiotic relationship. And the industry has lobbyists on the hill. A Federal representative at a PKI briefing (back when the Federal government was a bit hotter on the idea) had said that there will never be free electronic filing available to the public, because they are reluctant to put Intuit, HRB, et al, out of business--and that if they feared being put out of business, they would be reluctant to innvotate with Treasury.
Another proud carrier of the $rtbl flag
I found out about itax.com through godaddy, my domain name registrar. I haven't tried the service, but it says "100% free, no gimmicks" on their web site. I've been happy with their domain services so far so you might want to check it out.
Brandon Tallent
But you have to send them your fingerprints to be able to use it. I'm working on an open-source (QingPL) e-filing program. It probably won't be finished until next year without help, but it is available for your examination at http://sourceforge.net/projects/tax/.
They like to very tightly control who has access (for good reason) to send them data, both for quality control and security.
That actually makes it the perfect place for open source software, because you don't have to worry about massive numbers of people downloading and using your software for free. Tax preparation and e-filing is a service, and selling services is exactly how you make money with open source software.