The Tax-Preparation Racket Might Be Coming to an End

For years, TurboTax maker Intuit and other tax-preparation program makers worked to stop Americans from filing taxes directly with the federal government for free. But the TurboTax scam may finally be coming to an end.

In this photo illustration the TurboTax (Intuit) logo seen

Intuit and other corporations have kept Americans reliant on their services to file taxes, despite a US government effort to introduce a free filing service.(Rafael Henrique / SOPA Images / LightRocket via Getty Images)


For decades, the makers of tax-preparation software, like TurboTax owner Intuit, have worked to prevent Americans from filing taxes for free with the federal government. Through a combination of aggressive lobbying and search-engine manipulation, Intuit and other corporations have kept Americans reliant on their services, despite a US government effort to introduce a free filing service.

That may now be changing, as the Internal Revenue Service (IRS) has launched a pilot program, Direct File, that allows taxpayers to file for free. On the Lever Time podcast, Arjun Singh recently talked with Paul Kiel, a ProPublica reporter who has covered the tax-prep industry, and Beth Simone Noveck, a professor of experiential artificial intelligence (AI) who has helped develop tech platforms for state and federal government, on tax-preparation companies’ long campaign against letting Americans file directly with the IRS and the prospects for the government’s new pilot program.


Paul Kiel

In the 1990s, Intuit bought a company called Chipsoft, which had created TurboTax. This was like, CD-ROMs — back then, you would buy a CD-ROM that has tax software and then use the program to file through your computer.

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