TurboTax Activation Fiasco

kurtinatlanta writes "Though the news broke in September, no one cares about tax return preparation software until January. Apparently Intuit's activation scheme for TurboTax will only allow you to print or file your returns from the computer on which you first installed it. The phrase "one computer" in their license literally means one computer. Moving the software (i.e. disk reformat, buy new computer) requires buying it again. There are all kinds of negative reviews on amazon.com as a result. Is this problem real or overhyped?" There's a more recent story about the flap. The Intuit PR rep is quoted as saying that people can install the software on multiple computers using the same activation code, but I don't think an unworking installation really counts.

Comments

My take

[Em Emalb]

"Is this problem real or overhyped?"

It's real. If I buy something, I damned well better be able to use it/reinstall it if my computer blows up.

Think about it.

Re:My take

[patbob]

If I buy something, I damned well better be able to use it/reinstall it if my computer blows up.

Mark me paranoid, but the info is my tax info. The program is as much a part of the archival data as the .tax file and the paper copies. If there's any question about how I came up with the answers on the paper form, I darn well better be able to install it on another computer so I can access the data and algorithms that went into the conclusion.

Guess my complaint to them last September went unheeded. :-)

Re:My take

[evilpenguin]

This ability to transfer ownership of a DVD, book, CD, or VHS tape is because of the "principle of first sale." This is not a legal right, however, and only exists because it has been technologically impossible to prevent up to now, and because IP vendors were content with the revenue from the first sale.

The technology of perfect IP control is, however, either here now (in the case of software) or on the way (in the case of DVDs, CDs, and movies). It WILL be technologically possible to prevent recording, copying, or subsequent use. If you think you should be able to transfer without copying, then you had better get a bit more politically active. Consider joining/supporting the Electronic Frontier Foundation and write your congressional deleagation in opposition to the DMCA (which is already law) and several other proposed but not-yet-passed pieces of legislation designed to control even your presently legal use of your purchases.

Copyright infringement is, and should be illegal, but the principle of first sale, the right to archive, fair use, and the other consumer "rights" that came only from imprefect control technologies are in grave danger. If you think these should be rights of yours, by thunder, say so!

Re:My take

[gilroy]

Blockquoth the poster:

Where is the principle of first sale then? It is NOT present. I was never saying the law didn't mention first sale, nor that fair use isn't mentioned in the law.

This of course is the evil genuis nature of the DMCA. As has been claimed, you have certain rights ... but you don't have the right to exercise those rights.

This is my scheme for copy protection: Either a product is released "in plaintext" -- that is, with no access control mechanisms -- and the copyright holder is allowed to pursue infringers through the power of the courts. Or a piece is released with technological protections in place -- but then the producer has no right to redress under the court system.

In other words, don't muck with First Sale or Fair Use -- or you're on your own. If your encryption/protection works, more power to you. But if some kiddie cracks your access control mechanism, then too bad... you have no right to sue.

I don't think there's a snowball's chance in a supernova of such a law passing, but I think it would be fair.

Possible Solution?

[saider]

Here's what I do for nazi software - Run it in a VMWare virtual machine. As far as the program is concerned it is running on the same computer.

The only trick is you need to have VMWare ($300).

So What? Audits, that's what.

[asscroft]

I usually print and file from the same machine at which I installed anyway. This only has two impacts

1. You can no longer get the friends and family pack, so what, it's $20.00 and is super easy way to do your taxes. How many accountants charge $20.00 for you, and your friends, and your parents. Give it up, the free ride is over.

2. Audits from the IRS go back 7 years. If I have a new computer in 7 years I won't be able to reprint this years return. So much for the "store my tax info on CD". I'm stuck with Paper as my only record keeping. That removes one of the benefits of using a computer program in the first place.

Re:Use TaxAct.com

[tibbetts]

Or, pay an actual human being to do your taxes. I've never done it but I understand they know all about the loopholes and stuff.

Amen to that! My wife and her family haven't filled out their own tax forms for many years. I used to laugh at their willingness to throw away Good Money, but after we got married and bought a house, I decided to do a bake-off between using TurboTax myself vs. their long-time wetware tax preparer. The result? TurboTax cost me $70 ($30 fed. + $20/each for two states), took about three hours to go through (and another couple of hours or so to print and proofread) and I got a refund of $x. The tax preparer cost $120, took 40 minutes, and got us a refund of $x + $400 via legit "loopholes" (things like moving costs, higher ed credits, etc.).

If you need to fill out only a 1040EZ form, you definitely don't need TurboTax or a preparer, but if you have dependents or itemize deductions, I highly recommend going to a live person. (And no, IANATP.)

But if you're audited ...

[Bowfinger]

I don't know. TurboTax is only good for one tax year, so the useage lifetime for the software is as long as it takes me to actually do my taxes, which is only a couple of days, if that.

But what if you get that audit letter from the IRS in two or three years? You may want to reinstall 2002 TurboTax so you can review your records, only to find that it won't work on your most recent PC.

What if you simply need to file an amended return later this year? What if you lost your paper copy of your return and want to print another? What if you have trouble exporting your 2002 data to 2003 TurboTax, or maybe to a competing product without such an obnoxious copy protection mechanism?

There are lots of scenarios where you might need to use this software long after your initial filing. It's too bad Intuit is adopting the same kind of customer-hostile philosophy pioneered by our beloved MPAA & RIAA.

Re:Read the submission!

[MeNeXT]

So according to you I can install MS Office on Linux, I just can't run it? Please! as far as I care, if it does not work as advertised it is not installed....