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Free e-filing for 2001 Taxes?

Posted by Cliff on from the it's-getting-to-be-that-time-of-year-again dept.

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.."

11 of 39 comments (clear)

  1. Would be nice... sort of already tried... by pease1 · · Score: 4, Interesting
    The IRS has an amazingly complex process for processing their data into the different centers around the country. They like to very tightly control who has access (for good reason) to send them data, both for quality control and security.

    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.

  2. Specs & Info by FredtheDead · · Score: 5, Informative

    Here is the IRS's "IRS e-file For Tax Professionals, Software Developers and Transmitters" page.
    and here is the "IRS e-file Technical Publications" page which has the e-file file layout spec.

    1. Re:Specs & Info by markhb · · Score: 4, Insightful

      On the first of those pages, I found a link to their progress report on e-filing. Their stated intermediate goal by next year is for 100% of returns prepared electronically to be submitted electronically; overriding goal is that by 2007 80% of all returns (taken as 80% each of individual, commercial, and informational returns) to be filed electronically. Personally, I don't see how they can get to the 80% for individual returns without getting to "If you didn't pay to prepare the return, you don't need to pay to E-file."

      --
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    2. Re:Specs & Info by anthony_dipierro · · Score: 3, Informative

      You should know that you have to be approved, submit your fingerprints, and pass an FBI criminal background check in order to connect to the IRS computers. I applied in mid-December and still haven't been approved. Even if I am approved the software will not likely be finished enough to pass the test until next year.

    3. Re:Specs & Info by Tackhead · · Score: 4, Insightful
      > Personally, I don't see how they can get to the 80% for individual returns without getting to "If you didn't pay to prepare the return, you don't need to pay to E-file."

      Real easy. Allow things like the AMT to filter down into the middle class tax brackets, add more goofy deductions and credits, further complicate the "long-term/short-term" capital gains situation by adding an "ultra-long-term" capital gains rate, just keep patching on layer after layer of complexity to the code.

      The goal is that by 2007, nobody will be capable of filing their return without the assistance of a tax preparer.

  3. Quicken has free filling... by biohazard99 · · Score: 4, Informative

    For people whose AGI was under 25000 here. I used it last year and it was great, but it is a large web app so doing it over a 56k could mean a long night downloading instead of looking at tax tables and reciepts.

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  4. Need a Web-based solution by PoiBoy · · Score: 3, Interesting
    What the IRS really needs to do is create a web site where anyone can file his taxes online with a simple web browser.

    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.

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    1. Re:Need a Web-based solution by Havokmon · · Score: 4, Insightful

      Does anyone know how many EZ forms are used? That's about the only thing that could be done via the web... You're supposed to send copies of all your deductions along with the form. In my case have a mortgage, property taxes, consolidation loan (Never do one of those), 3 kids (ok, can't send them, though sometimes I'd like to), and 401k crap that needs to be sent... If you WANT to be audited, then I suggest taking a lot of deductions, and not sending any proof..

      --
      "I can't give you a brain, so I'll give you a diploma" - The Great Oz (blatently stolen sig)
  5. Re:Would be nice... sort of already tried... by Pituritus+Ani · · Score: 3, Interesting
    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 [gao.gov]. But hell, we did it in six months!

    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.

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  6. www.taxactonline.com by haystd · · Score: 4, Informative

    E-File is $7.95, paper return is free. Used them this year and they worked ok. Not quite as much hand-holding as you'd get with Tax Act or Turbo Tax, but fine for most tax returns if you're used to filing your own taxes.

  7. They do have a standard format by anthony_dipierro · · Score: 5, Interesting

    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/.