[Novalug] Tax Software Example

Ken Kauffman kkauffman@headfog.com
Tue Jan 23 11:01:23 EST 2007


-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

It's not online. It's windows based software similar to TurboTax.
Unfortunately, it's windows and mac only, so linux isn't the picture.
However, it's the *details* about using tax software that I'm pointing out.

Ken

Jay Hart wrote:
> Ok, maybe I missed something earlier. If I think I now understand TaxCut, its an online "form"
> that, when complete, you then just submit to the IRS.
> 
> Jay
> 
> "Preparing US tax forms?"
> 
> That doesn't make sense in this context. It's an electronic submission
> not *preparation*.
> 
> E-Filing via Tax Software:
> The electronic filing software zips your return information in separate
> packets. These packets are transmitted to the IRS in one taxpayer
> "envelope." The IRS functions as an electronic post office for the
> participating states, which receive and process the state electronic
> "envelopes."
> 
> As you can see, there is no outsourcing required and it goes directly to
> the IRS.  It also eliminates any mistakes with getting information off
> the paper into the computer for processing, which in turn speeds up the
> process overall.
> 
> Please feel free to elaborate if I've missed something here.
> 
> Ken
> 
> Jay Hart wrote:
>>>> There was I believe a 60 minutes piece several years ago that showed many tax preparation
>>>> companies outsourcing their tax return processes overseas.
>>>>
>>>> So what this means to you:  Your information between you and the US Gov't can be seen to some
>>>> extent by non-Americans. This scarces me to no end. The company they showed preparing US tax
>>>> forms
>>>> was an Indian company and the process was one in which pieces of data such as SSN was not
>>>> transmitted to the Indian company. But could this not be the case in all cases. I don't know,
>>>> and
>>>> so to ensure that my personal data does not leave the US (whatever that means), my accountant
>>>> does
>>>> my returns himself.  I still use a Ohio based accountant because he is good, and he can prepare
>>>> my
>>>> VA return just fine.
>>>>
>>>> Its really for this reason (data moving outside US), and this reason alone, that I don't have
>>>> any
>>>> confidence in online tax companies.  It may take a few more weeks to get my returns processed,
>>>> but
>>>> if I'm living on my tax return, then I've got bigger problems.
>>>>
>>>> Jay
>>>>
>>>> This is going to be quite long.  I believe it to be a good read, but
>>>> then again -- I wrote it, so of course I would <grin>.
>>>>
>>>> The issue that I have with Tax Software available elsewhere PARTICULARLY
>>>> with open source solutions is the backing provided by the software
>>>> creator.  There are a lot of tax laws that exist that either may have
>>>> changes, created or have new interpretations and guidelines.
>>>>
>>>> Those are always covered and warrantied by the "big players" out there
>>>> [Quicken and TaxCut (H&R Block)].
>>>>
>>>> Additionally, I have chosen E-filing with TaxCut (over Quicken).  About
>>>> 4 years ago Quicken introduced a copy protection mechanism that
>>>> *crushed* my Windows installation.  The burner simply was crippled as a
>>>> result of the software.  I don't care if they removed it subsequently, I
>>>> will likely never use Intuit tax software.  I moved to TaxCut.  I also
>>>> continue to use Quicken because it has functionality I leverage simply
>>>> not in other OSS products.
>>>>
>>>> Jay Hart -- here is an interesting piece that counters your argument on
>>>> only filing by paper to prevents "screw ups" from the on line
>>>> submission.  The support supersedes the issue.
>>>>
>>>> =====
>>>> Good support piece that I found with TaxCut from their online Q&A --
>>>>
>>>> Q: Can I do my taxes by hand and then sign up for Worry-free Audit Support?
>>>> A. No. H&R Block Worry-free Audit Support is only offered for returns
>>>> e-filed with an H&R Block Digital Tax Product.
>>>>
>>>> How It Works:
>>>> 1-Successfully e-file* your individual resident income tax return
>>>> (federal or state) using TaxCut or TaxCut Online (with paid federal
>>>> return) and you are eligible to receive audit support at no additional
>>>> charge for your 2006 return.
>>>>
>>>> 2-Retain your e-file confirmation email for Worry-free Audit Support?
>>>> confirmation.
>>>>
>>>> 3-If you receive a notice from the IRS or State Department of Revenue or
>>>> are audited, H&R Block will provide you with assistance with the notice
>>>> and/or offer to provide you with an H&R Block Enrolled Agent to
>>>> represent you if you are audited.*
>>>>
>>>> 4-Call 1-800-HRBLOCK to initiate audit services that you may need.
>>>> Conditions apply. View the complete terms and conditions for details.
>>>> =====
>>>>
>>>> Even if tax software for Linux were freely available, I 100% want
>>>> *backing* of the product like this.  I noticed that TaxCut has recently
>>>> been made available for the Mac as well.
>>>>
>>>> For me, there are certain products that just require them to be backed
>>>> to avoid legal repercussions.
>>>>
>>>> As an additional note, this is the type of obstacle that exists for OSS
>>>> in the business.  No matter how effective the solution, management wants
>>>> backing and accountability of certain types of products.  The pressure
>>>> is even higher if your business falls into needing to become
>>>> Sarbanes-Oxley (SoX) compliant.  SoX mandates not only separation of
>>>> duty for individuals but that focus highlights the accountability around
>>>> each responsibility.  There is a higher pressure for people to provide
>>>> solutions that work accurately the first time.  One OSS strength becomes
>>>> that primary weakness in that the code is open and you can edit it if
>>>> there is a problem.  However, "if there is a problem" is unacceptable to
>>>> begin with.
>>>>
>>>> A COTS solution where someone guarantees the solution and is legally
>>>> accountable is less of a headache for most organizations.  We all know
>>>> that it may or may not meet the need, but accountability is built in.
>>>> So if you can make that sell, then OSS isn't hard to get into the business.
>>>>
>>>> I only bring this up because I know Novalug has public engagements (i.e.
>>>> Congressional Internet Caucus Tech Fair) that exposes the interests to
>>>> the business and government.  If the representatives of NOVALUG can
>>>> articulate in clear terms the issues at hand and how they are *already*
>>>> addressed in the business space, then the interests are better served.
>>>>
>>>> Talking negatively about another solution or product almost never sells
>>>> the product your trying to push.  Avoid MS bashing.  You have to justify
>>>> and illustrate the value in OSS solutions.
>>>>
>>>> I also thing a dogged approach that all solutions must OSS is the wrong
>>>> communication to send to anyone.  This comes at the expense of being
>>>> viewed as extremists.
>>>>
>>>> I'm interested in any stories or opinions you may have about what I've
>>>> written above.  Also if I haven't been clear please ask for clarification.
>>>>
>>>> Ken
> _______________________________________________
> Novalug mailing list
> Novalug@calypso.tux.org
> http://calypso.tux.org/cgi-bin/mailman/listinfo/novalug
>>
_______________________________________________
Novalug mailing list
Novalug@calypso.tux.org
http://calypso.tux.org/cgi-bin/mailman/listinfo/novalug
>>

-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.4.6 (MingW32)
Comment: Using GnuPG with Mozilla - http://enigmail.mozdev.org

iD8DBQFFtjFTeG7FWlPCs4ERAikwAKCCWgdBFnAIlbbVTgLzzV7CuI1TsgCeLXW9
ThrGBz7X954F9i/TaBMolBA=
=57Bt
-----END PGP SIGNATURE-----




More information about the Novalug mailing list