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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.

34 of 554 comments (clear)

  1. My take by Em+Emalb · · Score: 5, Insightful

    "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.

    --
    Sent from your iPad.
    1. Re:My take by patbob · · Score: 4, Insightful
      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. :-)

      --
      Welcome to the net of 1000 lies. Upgrades are scheduled soon that should bring us to the 10,000 lies mark.
    2. Re:My take by evilpenguin · · Score: 5, Insightful

      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!

    3. Re:My take by joshki · · Score: 5, Informative
      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.
      Sorry, wrong answer. Section 109(a) of the Copyright Act of 1976, 17 U.S.C. 109(a)

      Do some research before you start spouting about things you don't understand -- the right of first sale is codified in law, and has been affirmed by the supreme court in numerous cases. There may be debate about how it applies to some digital media by some corporations, but that doesn't change the fact that it certainly is a legal right.

      --
      I do not read or respond to AC's. If you want a discussion, log in. Otherwise, don't waste your time.
    4. Re:My take by rw2 · · Score: 5, Interesting

      Sorry Susano, but I shouldn't have to "slashdot them with complaints" to get good service.

      I should be able to shut off the ads in quickbooks.
      I shouldn't have to pay $75 for technical service that I never recieved.
      I shouldn't have to pay $149 a year for tax tables when the gross margin must be 98%.
      I shouldn't have to call and explain to them who I am to reinstall my 1999 tax software
      If I have to call them, they should be open 24/7 not just when it's convenient for them.

      Just the ads in quickbooks alone are reeediculous. I generate an invoice, intuit wants to sell me a service to check if the customer will pay. I write a check, they want to sell me checks. I quit quickbooks, they want to sell me back-up services.

      I shouldn't have to get 200K of my closest /. friends to harass them to get this stuff fixed...

      They aren't devoted to customer satisfaction, they are devoted to squeezing the absolute most they can out of their customers. I think just a few google searches will be enough to demonstrate that they have squeezed too hard and will therefore, like they have with me and many others in on this article, lose business due to an almost complete disinterest in customer satisfaction.

      Oh, and I've written them about all of these issues. Not even the courtesy of a reply. They couldn't be bothered to lift a pen, much less fix the issue. Customer service indeed.

    5. Re:My take by gilroy · · Score: 4, Insightful
      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.

  2. Read the submission! by Dynedain · · Score: 5, Informative

    The Intuit PR rep is quoted as saying that people can install the software on multiple computers using the same activation code - the very thing that the activation process is supposed to prevent - so he is misquoted, misinformed, or lying.

    No, you can install on another machine, you just can't print or file your return from that machine. Installation and printing are completely different things last I checked.

    --
    I'm out of my mind right now, but feel free to leave a message.....
    1. Re:Read the submission! by MeNeXT · · Score: 5, Insightful
      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....

      --
      DRM? No thanks, I'll just get it somewhere else...
    2. Re:Read the submission! by The+Bungi · · Score: 4, Interesting
      Everyone knows that changing stories without notification is a very, very bad practice, and an ethical editor like micheal would never stoop to such a low level.

      Moderation rears its ugly head again, I see you got an offtopic slap.

      Anyway, think of why this happens. Especially in a story like this, Slashdot (or the OSDN keiretsu) could be fully taken to court by Intuit because of misrepresentation of facts and loss of business related to that. Don't know the exact legal term, but I'd think it's somewhat akin to slander. Never mind that it doesn't really matter - TurboTax and the whole activation thing sucks. But it's different if it's plastered all over the front page for half a million people to see.

      Ergo, the "editorial byline" is fixed with alacrity. Very convenient.

      Hmmm. What's that I see in the distance? An offtopic bitchslap on this thread? Could it be? Yes!!

  3. Use TaxAct.com by Qrlx · · Score: 4, Informative

    The simple solution is to not use TurboTax. TaxAct.com has always worked for me. And it's free.

    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.

    1. Re:Use TaxAct.com by tibbetts · · Score: 5, Insightful

      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.)

      --
      :wq
  4. One good review by SoCalChris · · Score: 5, Funny

    I bet G. Cooke from Texas would give it a positive review!

    1. Re:One good review by jonathanclark · · Score: 4, Interesting

      Why do I have the feeling that a lot of these negative comments are made by a competing company? Most of the dates are Jan 4. It would be interesting to see Amazon's IP logs for all the post. I know this wouldn't be the first case of posting fake reviews (both positive and negative). No doubt many of the comments are real, it's a legit issue - but I think it's been overhyped by competition. My guess is it's someone from TaxCut.

      Look at this review:

      ------------------
      Christopher R Chirdon from Pittsburgh, PA USA
      I was reading reviews here when I really checked into the online activation stuff. But someone was concerned if you could import your 2001 "filename.tax" file from TurboTax 2001 into TaxCut 2002 and the answer is YES! I bought TaxCut because I want to prepare on my personal computer and then take it to work to print on my laser printer, but I don't want to have to buy 2 licenses. Also, it's just SUCH a hassle. The funny thing is, I don't think taxCut uses ANY type of authentication. I put the CD in and it never asked me for a serial or anything, just a box that said "Is this a legal copy? Y/N".
      In a nutshell, if you are concerned about buying TaxCut 2002 and importing your TurboTax 2001 goo, don't be. It went right in for me, and the program seems to be every bit as good as TurboTax. It doesn't have that annoying "da dum dum, da dum da" musical intro that always bothered me either... ;)

  5. Alternative? by swordboy · · Score: 4, Interesting

    OK -

    I'm finally gonna switch because of this but my big question is, which competing product would be best to go with and why?

    TIA

    --

    Life is the leading cause of death in America.
    1. Re:Alternative? by fobbman · · Score: 5, Informative

      I've been checking out Kiplinger's Tax Cut from my local library for a few years now. Very thorough software, and it only costs me money when I return it late. ;)

  6. TurboTax sucks anyway by Lxy · · Score: 5, Interesting

    Last year I needed to file a 1040 for the first time. Usually I just go for the 1040EZ, but I had a few items I needed to use the 1040 for. Ok, whatever.

    I was looking for a good e-file solution, so I found Turbotax online. For $10 you can file your 1040, no software to install, it's a secure java applet. Cool. I spent a good 45 minutes filling everything out, triple checking my numbers, submitted it, life was good.

    Three weeks later, I get an envelope from the IRS.

    It seems that Turbotax f#@%ed up my taxable income, and stiffed me $320 on my federal return. The IRS fixed it and sent me a check for the difference, but I was still ticked. I printed off all the info and studied it carefully. All the data I put in was right. I ran the numbers manually, and what do you know, my taxable income was lower, and when I comp[uted the tax table I found the missing $320.

    F@#% YOU, TURBOTAX.

    --

    There is no reasonable defense against an idiot with an agenda
    :wq
    1. Re:TurboTax sucks anyway by LostCluster · · Score: 5, Funny

      On the other hand... let's notice that the IRS sent that taxpayer $320 he didn't even realize he was entitled to.

  7. Possible Solution? by saider · · Score: 5, Insightful

    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).

    --


    Remember, You are unique...just like everyone else.
  8. Damn.... by dallask · · Score: 4, Funny

    I guess this means that I cant download and rip a copy of TurboTax so that I can lie on my tax returns while burning it for family????

    Crap.

    --
    The Code Ninja is swift with his tool, precise in his delivery, and deadly accurate in his execution.
  9. What I'd like to see by salesgeek · · Score: 4, Interesting

    I don't care if it's character based, but it would be cool if the IRS did a tax application that was simply self-calculating and linked so the totals from worksheet forms carry over to the tax form.

    I don't need FinanceChick and TaxDude giving me video advice. I just need the instructions, the forms, and a way to save while I go out back and beat up on the shed, woodpile or a bear when I get to the "Your income tax due (or your refund)" line...

    $G

    --
    -- $G
    1. Re:What I'd like to see by LostCluster · · Score: 4, Informative

      The IRS has made rumblings that unless the tax software industry gets their act together, the IRS will start work on an "official" tax product that would likely be impossible to compete with.

      The state of MA has already done this, with an easy-to-use web interface (over HTTPS, of course) that puts the state edition of TurboTax to shame. MA doesn't have that complex of a tax code anyway, so there really isn't much for software to do in the first place besides data entry and transmission.

  10. So What? Audits, that's what. by asscroft · · Score: 4, Insightful

    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.

    --
    because I have been enjoined by this Holy Office to abandon the false opinion which maintains that the Sun is the centre
  11. Best comment on Amazon regarding the matter by Eagle7 · · Score: 5, Funny

    I love this comment:

    Quality Control?, January 4, 2003
    Reviewer: Ex-long time user from Hernando, MS United States
    I purchased TurboTax Deluxe for the fourth year in a row this year. When I went to install the program from the CD it turned out to be an AUDIO CD OF MEXICAN MUSIC! Bizarre.
    ...

    --
    _sig_ is away
  12. Re:More importantly.... by mumblestheclown · · Score: 4, Funny

    Moderation Totals: Mind-Numbingly Naive, -2

  13. I'd call support on that one by Wee · · Score: 4, Funny
    I'd seriously call support, and have them walk me through an installation. In fact, I'd weedle my way to 2nd or 3rd tier if I could before I got to the actual inserting-the-cd bit. And I'd have to turn auto-run on too. That would be a key feature of the support session: "Ok, I inserted the CD and now there's like carnival music or something coming out of my speakers! Does TurboTax come with a soundtrack?"

    Feh. The only kind of music I want to hear when doing taxes is the Muzak in the lobby of my CPA. Try taking the TurboTax software packaging to tax court with you and see how much it helps.

    Dental work and accounting: two things you should never do by yourself, for yourself.

    -B

    --

    Ash and Hickory, straight-grained and true, make excellent bludgeons, dandy for the cudgeling of vegetarians.

  14. Re:People are dumb.... by evilpenguin · · Score: 5, Informative

    This is just dead wrong. I sniffed my network during the install. It opens an https session to a server at Intuit. About 30k of data is exchanged (being encrypted 128-bit I don't know what data). I can guarantee that if the reg key is included, they can cripple the next install. If you don't hook the machine to the internet, they don't let you pint or file. Don't make pronouncements out of ignorance.

  15. Amended Returns by IsThisNickTaken · · Score: 4, Informative

    I have been a Turbo Tax user for the last 7 or 8 years. Several years ago I decided to change how I was handling depreciation on a rental property. I was able to reinstall my old copies of Turbo Tax and amend my tax returns. I had kept my .tax files around on my computer.

    While it is of limited use, some people do need to access/change previous tax returns. With the new product activation it sounds like I may have been screwed.

  16. This page from Intuit spells it out clearly by release7 · · Score: 4, Informative
    Copied from http://www.turbotaxsupport.com/servicesupport/defa ult.asp?platform=1&formName=&pd=&fs=&ver=&sku=&Doc ID=

    Do I need to activate TurboTax again if I reinstall the program? Whether or not you need to reactivate TurboTax (that is, purchase an additional product license) depends upon your particular situation:

    If you reinstall TurboTax to the same hard disk that it was previously activated on, you do not need to activate it again.

    If you install TurboTax on another computer, you need to activate it again only if you want to print or electronically file your tax return from that computer.

    Example: You activated TurboTax on your home computer and attempt to electronically file your tax return, but for some reason you start to experience problems with your Internet connection. The next day, you install TurboTax on your computer at work, along with a copy of your tax file. In order to electronically file your tax return from your work computer, you must activate TurboTax on your work computer. Note: If you need to reinstall an activated copy of TurboTax on another computer because of a hard disk failure, or if you are reinstalling an activated copy of TurboTax on a newly purchased computer or hard disk, please contact a live agent to obtain a second activation code.

    If you install TurboTax on another computer without activating it, you can make changes to your tax return using the EasyStep Interview, but you will not be able to print, electronically file, use the Forms Method, view tax forms, or save your tax file as a .pdf file from that computer.

    Example: After activating TurboTax, you electronically file your tax return and print copies of the return for your records. Shortly thereafter, you replace your original computer with a new one. You install TurboTax on the new computer in case you need to refer to your 2002 tax file, but you do not intend to electronically file or print your return again. In this case, you do not need to activate TurboTax on your new computer. Product Activation lets you print or electronically file tax returns from any computer that TurboTax is activated on; it does not prevent installing the program on another computer.

    --

    <a href="http://www.joblessjimmy.com">Work is dumb and so is Jobless Jimmy.</a>

  17. But if you're audited ... by Bowfinger · · Score: 5, Insightful
    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.

  18. Re:Pencil by cheezedawg · · Score: 4, Informative

    like receiving your return in a couple days quick

    You do realize that if you get a refund when you file your taxes, that basically means you just gave the government an interest free loan, right? The trick is to withhold as little as possible during the year so you either break even or owe a little bit on April 15 (not enough to get an underpayment penalty, of course). Then your money is YOURS throughout the whole year, and you can save it and invest it anyway you like the whole time.

    --
    "The defense of freedom requires the advance of freedom" - George W Bush
  19. Shouldnt that be by Unknown+Poltroon · · Score: 4, Interesting

    the irs returned 320 that they werent entitled to?
    Lets remember, its YOUR money THEY are taking.

    --
    All Troll + "offtopic" mods are meta moderated as "Unfair", because you abused the system.
  20. Spyware by The+Bungi · · Score: 4, Interesting
    Here's a nice overview of spyware. Point your non-techie friends/co-workers/family/pets to articles like this one so they "get" what spyware is and what it's not, and explain to them why they should avoid it.

    Gator for example claims millions of "satisfied customers" - in my experience they have millions of victims who don't know how the crap got into their computers in the first place and no clue as to how to remove it. But I guess that's a valid "installed base".

    As for C-Dilla, I don't think it's spyware (not in the classic definition anyway), but regardless of that TurboTax is no longer welcome on my computer, and I happen to be a 5 year satisfied user. There's absolutely no fucking way I'm going to live with a resident executable living in my system hooking processes to see if they are "protected". Intuit can smooch my bootay. I'm going with TaxCut for 2002.

    I hope the company rents a clue from this, and I hope their sales fall through the basement and they fix it for 2003. If they do, I'll buy it again.

  21. My experience says Intuit dropped the ball. by hklingon · · Score: 4, Informative

    I am a college student and part time computer consultant. We all know how that goes. The thing is, I've helped many clients upgrade their QuickBooks, Quicken and other Intuit products over the past several months. Let me relate to you only one of them:

    Client has Quickbooks 6.0. It must be about 4 years old, or so. It is cumbersome and annoying to update the Tax table/rate codes. They use it for payroll, accounts recievable, accounts payable. Though it is a family business, it is broken into several files for manage-ability. (Legally) They have several companies set up-- and some companies are seasonal. (e.g. Yard work). From what I understand, there are federal and state tax advantages, if you have several small companies that work together. Anyway, there are about 3 employees that manage the books for 15 or so company files.

    Trouble: When we upgraded from QB6.0 to QB2003, the "upgrade" did not count QB6.0 as valid. We were on hold for over 90 minutes, and finally got through to a rep, that told us we had to fax them a recipt for the QB2003 as well as a recipt for the QB6.0 from 4 years ago. (We had QB6.0 serial numbers, correspondence, etc, no good. The client had been a quicken gold support (or whatever) member for the past 4 years, up until about 6 months prior to the upgrade. They could find no trace of us in the system, and only a recipt for QB6.0 would do. They claimed they couldn't find us even though they'd mailed tax table updates a few months prior as well as a "you must upgrade to QB2002 right now because we no longer support 6.0" -- with QB2003 due out soon we decided to wait the 4 (or so) months to get the newest version. They were told QB6.0 would count for the QB2003 upgrade when they explicitly asked (at my instruction). Anyway, about 4 days later they were able to activate qb2003 with a replacement keycode, but only after faxing them both the recipts, cover of the manual and serial numbers. Did I mention we bought directly from the intuit website? As if that wasn't enough, a few days later they went to do payroll. It wouldn't let them until it went online and updated-- which it could not do because it could not verify subscription status. When done manually, after being on hold for 108 minutes, the rep said it was good for only one company file. My client would have to pay per-company. I think the "accountant edition" might side step this somehow, but it was difficult getting straight answers. We chatted with a rep on the website as well as phoned in months prior and went over the situation in detail. We ordered what they recommended. We've also discovered some features they had in QB6.0, though rudimentary, are pay-for in QB2003. It has been an extremely painful upgrade.

    Though this client only had 4 QB computers, this was probably the most painful upgrade ever. The other experiences I've had with intuit proably aren't this bad, but they're not exactly great either.

  22. If you multiboot -- beware! by Whip · · Score: 5, Interesting

    I've been trying to post this "review" to Amazon for a couple of days, but there seems to be something wrong with their comment posting code. So here's MY experience with TurboTax 2002

    [amazon posting starts here]
    I won't reiterate many of the points made by other reviewers on amazon -- I'll just summarize the reviews as "good software, but the copy protection sucks".

    I had the copy protection suck more than most. I dual boot WindowsXP and Linux, using the "GRUB" bootloader (which is currently used now by, among others, RedHat linux), and installing TurboTax 2002 made my entire computer unbootable! The activation code writes some information to the front of the harddrive (before the first partition), which overwrote my bootloader, which was already living there! (This may happen with other bootloaders as well... I've only tested with the one).

    And fixing my system so it would boot again (by reinstalling the bootloader) produced a copy of TurboTax that a) thought it wasn't activated, and b) Thought that my productid had already been used "by another computer", so couldn't be re-activated.

    Intuit did eventually give me another product ID that worked, after I spent several hours trying to explain the problem to tech support, and rebooting time and time again as the reps had me uninstall, reinstall, install in safe mode, install while standing on my head...

    The software itself is OK (Though I still wish it could import from Quicken based on the "class" of the transactions), but I have the strong opinion that installing tax software should not render my computer unbootable!