Intuit beats FTC in court, ending restrictions on “free” TurboTax ads

L0neW0lf

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Sounds like we need a consumer watchdog that can sue at this point. If 2/3 of the people that try to file can't do so for free, that violates "free" in my book.

Getting rid of the government free option to file is also ridiculously burdensome IMO. In my mind, that means we ought to be able to deduct any tax filing software we use in our filings.
 
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125 (127 / -2)

rcduke

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...privacy, combating robocalls, and regulating broadcasting—go effectively unenforced.”
I'm afraid, dear Watson, that this is the point.

Big business gets to lie to serve themselves but they immediately get defended when sued by the people. Big business got Trump in office for a second term, and he's now stripping regulations away to benefit big business under the guise of "removing woke regulations".

Not sure how this gets fixed because it'll just get stripped away the next time a republican gets elected to the presidency.
 
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85 (85 / 0)
You gotta love these arguments over standing and venue. No one in this ruling, not even Intuit themselves, are denying that they straight up lied to their customers to extract fees from them... but because the fifth circuit decide the complaint was handled improperly Intuit is now free to continue lying to people.
 
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58 (59 / -1)
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jhodge

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So this is a ruling that before an Executive branch agency can penalize you, they have to make their case to a Judicial branch court as opposed to a in-house judge? That sounds good in theory, but impractical. Kind of like how the criminal courts would be unable to operate if nobody ever excepted a plea-bargain.
 
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24 (24 / 0)

wxfisch

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Since the IRS knows if I do my taxes wrong, what if they just sent me a bill, I could claim any credits I am due, and then be done with it?

No, instead Intuit and H&R Block are so in bed with congress that we continue to have this ridiculous process where I have to figure it all out (or more likely pay someone to help me), and hope I did it right, because otherwise I have to pay someone, possibly from one of those companies, to help me fix it and refile to try again.
 
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79 (80 / -1)

Wheels Of Confusion

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Just love that Carr isn't even trying to hide his partisanship.
I mean, he literally said he isn't going to.
https://meincmagazine.com/tech-policy...nt-trump-more-than-fcc-chairman-brendan-carr/
Carr, a longtime Trump supporter who sometimes wears a Trump-shaped lapel pin, wrote a Project 2025 chapter in 2023 describing how the FCC should be overhauled to achieve conservative priorities. It was never likely that he and Trump would differ much in their policy positions. But few, if any, leaders of historically independent agencies have aligned themselves with Trump as consistently and vocally as Carr has in his first year as FCC chairman.

Carr’s devotion to the president has been most obvious to the general public whenever he threatens broadcaster licenses. But Carr hardly seems independent of Trump when it comes to his other actions as head of the FCC. His press releases announcing various types of FCC decisions often praise Trump’s leadership and say the FCC is acting to advance a Trump priority.

“We are fully aligned with the agenda that President Trump is running,” Carr told The Wall Street Journal.

Far from insisting that the FCC make decisions independently, Carr has welcomed Trump’s direct orders. After Trump issued a December 11 executive order requiring the FCC to open a proceeding that could lead to preemption of state AI laws, Carr issued a statement saying that “the FCC welcomes President’s Trump’s direction.”

We emailed Carr in early December, requesting a phone interview or comments about whether he still believes the FCC should operate independently from the White House and did not receive a response. But on December 17, Carr confirmed during a Senate hearing that he no longer believes the FCC is independent from the White House.

“There’s been a sea change in the law since I wrote that sentence,” he said after being confronted with one of his previous statements describing the agency as independent. “The FCC is not an independent agency” because “the president can remove any member of the commission for any reason or no reason,” he said.
 
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17 (18 / -1)
Huh, $128 to file a regular return with Turbotax this year. They killed the IRS-created Free File path in the BBB and left us this. Free File (RIP) was pretty excellent, I was in one of the pilot states that worked well with it too.

If you want to play on hard mode, AFAIK you can still download a PDF form and file that way for free. Make sure you have perfectly sanitized inputs, the validator will barf if you have stuff like trailing spaces.
 
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48 (48 / 0)

Jeff S

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I don't understand - aren't such administrative agency 'fines' similar to a speeding ticket? Sure, I have the right to go to court and challenge the ticket on whatever legal theory I think will prevail "e.g. they don't have proper evidence to prove my guilt; or, they got the wrong person; or the police officer was trying to blackmail me into giving them a BJ by threatening me with a ticket" or whatever.

Or, you can decide that they have enough evidence, the ticket is $100 and it's not worth your time going to court to fight when you're going to lose anyhow, so you sign the back of the ticket waiving your right and admitting guilt and pay the $100.

So why isn't it like that with FTC fines? They can choose to waive the right to trial and pay the fine, or they can try their luck in court if they want to challenge it?
 
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31 (31 / 0)

CalJake

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Not that Intuit/TurboTax really cares, but this is the first time in 20 years I didn't use TurboTax to prepare my taxes. It seemed to be getting worse every year. Their requirement for Win 11 only for this year's application, even if your Win 10 has extended security coverage, is a load of shit. I will not use their web-based version, which they're clearly trying to push everyone to. And this whole sketchy "Free" compaign has always been misleading. Good riddance.
 
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38 (38 / 0)

olePigeon

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If it weren't for Intuit, the IRS would be properly funded like any other 1st world developed nation. You wouldn't have to fill out any forms unless you've moved, in which case it's just a Change of Address Form from the Post Office. Everyone would get either a cheque or a bill, and the ability to review the final return with an option to file a correction. You could, of course, opt-in to file if you want to itemize or if you have foreign investments you need to report. But for 80% of Americans, you'd just get a cheque every year without having to do anything.

As a bonus, the IRS would also have the resources to audit wealthy individuals instead of low-income and blue-collar individuals who can't hire fancy lawyers. Reclaim billions of dollars in lost revenue, maybe even send a few of them to prison for tax evasion.
 
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65 (65 / 0)
Reminder that the primary reason TurboTax exists is because the tax code is too complicated to just fill out the forms with a pen.




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27 (31 / -4)

Tridus

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Reminder that the primary reason TurboTax exists is because the tax code is too complicated to just fill out the forms with a pen.




View attachment 131226
Which companies like Intuit actively pay Congress bribes (sorry, "Campaign Contributions") in order to maintain. Just like they recently paid to get Congress to remove the free filing option.

So the real primary reason Turbotax exists is to solve a problem perpetuated by the makers of Turbotax and supported by one of the most openly corrupt governments on earth.
 
Upvote
28 (29 / -1)
Just dropping this in here, in case people don't know: https://apps.irs.gov/app/freeFile/

There are plenty of (actually) free alternatives to Turbo Tax. You can you the link above to find an IRS approved tax service, based on what kind of income you have.

Like a lot of people, I used TurboTax for years when it was actually free (or at least close to it). Part of the appeal is that it keeps your previous years data which makes a much smoother filing each year. I've helped my parents a lot with their taxes and it makes it really easy for everyone, but I was shocked at how much they are charging for the service now. This seems to be the typical bullshit "get them in the door cheap and then slowly raise prices" routine that is all too common in tech industry.

The one I ended up finding for my parents was actually cleaner and easier than TurboTax, and completely free. Took less time start to finish and saved them roughly $180.
 
Upvote
26 (28 / -2)
So this is a ruling that before an Executive branch agency can penalize you, they have to make their case to a Judicial branch court as opposed to a in-house judge? That sounds good in theory, but impractical. Kind of like how the criminal courts would be unable to operate if nobody ever excepted a plea-bargain.

I don't understand - aren't such administrative agency 'fines' similar to a speeding ticket? Sure, I have the right to go to court and challenge the ticket on whatever legal theory I think will prevail "e.g. they don't have proper evidence to prove my guilt; or, they got the wrong person; or the police officer was trying to blackmail me into giving them a BJ by threatening me with a ticket" or whatever.

Or, you can decide that they have enough evidence, the ticket is $100 and it's not worth your time going to court to fight when you're going to lose anyhow, so you sign the back of the ticket waiving your right and admitting guilt and pay the $100.

So why isn't it like that with FTC fines? They can choose to waive the right to trial and pay the fine, or they can try their luck in court if they want to challenge it?
That’s exactly what this ruling was. It was a process decision, not on the merits. The conflict with the FTC is that you have one agency serving as prosecutor, judge, jury, and setting the penalty, all in their in-house tribunals (where they have a 95+% “win” rate). They then further claim that you have to fully exhaust the in-house appeals system before having the right to move to an actual jury trial. The SC basically said what Jeff S suggested, that if you’re guilty and you know it and the penalty is reasonable, then you can pay it and move on, but if you disagree on whatever grounds you can immediately move to the courts.

Which, all [legitimate] concerns of corruption and cronyism and overstuffed dockets aside, is precisely where these disputes belong. The in-house system is massively stacked against the accused in a way that the US Constitution doesn’t allow under the 7th amendment. There’s not a legal leg to claim otherwise, only pragmatic ones.
 
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msawzall

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Just dropping this in here, in case people don't know: https://apps.irs.gov/app/freeFile/

There are plenty of (actually) free alternatives to Turbo Tax. You can you the link above to find an IRS approved tax service, based on what kind of income you have.

Like a lot of people, I used TurboTax for years when it was actually free (or at least close to it). Part of the appeal is that it keeps your previous years data which makes a much smoother filing each year. I've helped my parents a lot with their taxes and it makes it really easy for everyone, but I was shocked at how much they are charging for the service now. This seems to be the typical bullshit "get them in the door cheap and then slowly raise prices" routine that is all too common in tech industry.

The one I ended up finding for my parents was actually cleaner and easier than TurboTax, and completely free. Took less time start to finish and saved them roughly $180.
Replying just to repost.
 
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pete.d

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If it weren't for Intuit, the IRS would be properly funded like any other 1st world developed nation. You wouldn't have to fill out any forms unless you've moved, in which case it's just a Change of Address Form from the Post Office. Everyone would get either a cheque or a bill, and the ability to review the final return with an option to file a correction. You could, of course, opt-in to file if you want to itemize or if you have foreign investments you need to report. But for 80% of Americans, you'd just get a cheque every year without having to do anything.

As a bonus, the IRS would also have the resources to audit wealthy individuals instead of low-income and blue-collar individuals who can't hire fancy lawyers. Reclaim billions of dollars in lost revenue, maybe even send a few of them to prison for tax evasion.
All true, except the "if it weren't for Intuit" part.

Unfortunately, there are plenty of other interested vested in keeping the US tax code complicated and filer-based. From H&R Block, Kiplinger, and other big tax firms, along with the CPA lobby as a whole, to the millionaires and billionaires who get to avoid all kinds of tax liability through the use of myriad loopholes possible only because of the complexity of the code, lots of people like things exactly as they are. And unfortunately, those people are the ones in charge of the laws, not the general public.

But other than that, yes, absolutely yes. The US tax system is just plain wrong, and there are lots of other countries that do it right that we could emulate. Basically, get rid of deductions beyond a basic poverty-line based one, treat all income the same, and instead of making people do their taxes, just send them a bill based on the data that the IRS is already getting from required reporting.

Maybe with a sane tax system, we wouldn't even need to be looking at wealth taxes. Not that I'd have anything against them, but it's an added political distraction that mainly exists because we fail to capture tax revenue on income of the wealthiest.
 
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41 (41 / 0)
Just dropping this in here, in case people don't know: https://apps.irs.gov/app/freeFile/

There are plenty of (actually) free alternatives to Turbo Tax. You can you the link above to find an IRS approved tax service, based on what kind of income you have.

Like a lot of people, I used TurboTax for years when it was actually free (or at least close to it). Part of the appeal is that it keeps your previous years data which makes a much smoother filing each year. I've helped my parents a lot with their taxes and it makes it really easy for everyone, but I was shocked at how much they are charging for the service now. This seems to be the typical bullshit "get them in the door cheap and then slowly raise prices" routine that is all too common in tech industry.

The one I ended up finding for my parents was actually cleaner and easier than TurboTax, and completely free. Took less time start to finish and saved them roughly $180.
And if you're over the income limits for the free ones, or if you just hate yourself, you can fill out the forms yourself and file digitally. It's essentially just a bunch of PDFs that do the math for you.

https://www.irs.gov/e-file-providers/free-file-fillable-forms
 
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26 (26 / 0)

Mechjaz

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Since the IRS knows if I do my taxes wrong, what if they just sent me a bill, I could claim any credits I am due, and then be done with it?

No, instead Intuit and H&R Block are so in bed with congress that we continue to have this ridiculous process where I have to figure it all out (or more likely pay someone to help me), and hope I did it right, because otherwise I have to pay someone, possibly from one of those companies, to help me fix it and refile to try again.
It's a sad not-quite-joke to say this is one of my favorite rants.

They know the rules. They know the numbers. They know what I owe or am owed. But I still have to send in a convoluted form to make my best guess at what I think those numbers are, under penalty of law for getting it wrong.
 
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RZetopan

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'Intuit issued a statement after the 5th Circuit ruling. “I’m thrilled that, once this matter returned to a neutral decision-maker, common sense carried the day,” Intuit General Counsel Kerry McLean said.'

So Kerry McLean is every bit as corrupt as the Felon45 administration, complete with making exactly counterfactual claims! Very Precise! Although, he did leave out claiming that this will greatly benefit the consumers with lower costs.
 
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8 (8 / 0)

Griking

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You want to beat Intuit? Take them out of the game.

Do our taxes for us. the government already know how much they owe us or we owe them. Give us the option to choose automatic taxes or manual taxes. Send us a check or bill in the mail and if we wanna do it ourself we can do it ourself.

There's no reason that 3rd party companies should be profiting off of taxpayers who just want to pay their bills or collect their refunds
 
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12 (13 / -1)
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It's a sad not-quite-joke to say this is one of my favorite rants.

They know the rules. They know the numbers. They know what I owe or am owed. But I still have to send in a convoluted form to make my best guess at what I think those numbers are, under penalty of law for getting it wrong.
My favorite part is I'm supposed to wait for all these various documents that they must get access to as well, do I can double check their math. Those documents, which are critical for me getting my math right so it matches their math, must be sent out by the end of January or whatever to make sure I have time to submit my math by the legal deadline.

I have never once had all my bank statements and shit on time. I've never even waited long enough to do my taxes to get them all on time. I'll do my taxes late March or even wait right up to April and I'll fucking still get a 1099 for some bank after I've submitted my return.

Is the IRS getting their copies late too? Or are the banks just fucking with me? Does anyone know what the hell they're doing, or is it all random chance if anyone gets it right?
 
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26 (27 / -1)

RZetopan

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Since the IRS knows if I do my taxes wrong, what if they just sent me a bill, I could claim any credits I am due, and then be done with it?

No, instead Intuit and H&R Block are so in bed with congress that we continue to have this ridiculous process where I have to figure it all out (or more likely pay someone to help me), and hope I did it right, because otherwise I have to pay someone, possibly from one of those companies, to help me fix it and refile to try again.
And remember Der Orange Führer during his first run at the presidency claimed he was going to simplify the IRS to where you could fill out your entire tax form on a 3 by 5 inch card? Did he forget, or is that only true for billionaires? (Rhetorical, only MAGA morons don't know which). /S
 
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19 (19 / 0)
Just dropping this in here, in case people don't know: https://apps.irs.gov/app/freeFile/

There are plenty of (actually) free alternatives to Turbo Tax. You can you the link above to find an IRS approved tax service, based on what kind of income you have.

Like a lot of people, I used TurboTax for years when it was actually free (or at least close to it). Part of the appeal is that it keeps your previous years data which makes a much smoother filing each year. I've helped my parents a lot with their taxes and it makes it really easy for everyone, but I was shocked at how much they are charging for the service now. This seems to be the typical bullshit "get them in the door cheap and then slowly raise prices" routine that is all too common in tech industry.

The one I ended up finding for my parents was actually cleaner and easier than TurboTax, and completely free. Took less time start to finish and saved them roughly $180.
I used to just use the guy my parents told me about until CA was in the trial for the direct file (that was taken out back and shot unceremoniously). I refuse to use TurboTax and all that for as long as possible. These free options should be advertised way more.

I also used VITA in college and a few years after when I wasn't making too much. Free taxes and training for students, should definitely be advertised more.
 
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Fatesrider

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Oligarchy
The only difference between a banana republic an an oligarchy is the relative wealth levels of each end of the spectrum.

In the US, the top 10% control 87.2% of the total wealth in the nation in 2205, while the bottom 50% own 1.1%.

When that much power is concentrated in that few people, the laws of the land should break them up.
 
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Steve austin

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Carr’s desire to keep the FCC’s power to fine is not because of the fines against AT&T, Verizon, and T-Mobile - I assume those go away as soon as they genuflect appropriately at the Orange Throne. Rather, it to retain the power to fine and otherwise punish media outlets that offend the Orange one.
 
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