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|1.5x, //upload.wikimedia.org/wikipedia/en/thumb/8/82/TurboTax_Logo.png/150px-TurboTax_Logo.png 2x” data-file-width=”256″ data-file-height=”256″ />|
|Initial release||2001; 17 years ago|
Intuit Consumer Tax Group headquarters in San Diego (where TurboTax is developed)
TurboTax is an American tax preparation software package developed by Michael A. Chipman of Chipsoft in the mid-1980s.  Intuit acquired Chipsoft, based in San Diego , in 1993.  Chipsoft, now known as Intuit Consumer Tax Group, is still based in San Diego, having moved into a new office complex in 2007.  Intuit Corporation is headquartered in Mountain View , California . 
TurboTax for the Mac was originally named MacinTax, and was developed by SoftView.  SoftView was in turn purchased by ChipSoft. 
TurboTax is one of the most popular income tax preparation software packages in the United States, along with its main competitors, Jackson Hewitt , H&R Block at Home , TaxSlayer , and TaxAct . 
- 1 Overview
- 2 International versions
- 3 Controversies
- 3.1 Writing to the boot track
- 3.2 Opposition to return-free filing
- 3.3 Repositioning of versions
- 3.4 Fraudulent return claims
- 4 Reception
- 5 See also
- 6 References
- 7 External links
Overview[ edit ]
There are a number of different versions, including TurboTax Deluxe, TurboTax Premier, etc. TurboTax is available for both federal and state income tax returns. The software is designed to guide users through their tax returns step-by-step. The TurboTax software provides taxpayers additional support for their self-prepared returns by offering Audit Defense from TaxResources, Inc . 
Typically, TurboTax federal software is released late in the year and the state software is released mid-January to mid-February.  TurboTax normally releases its new versions as soon as the IRS completes revisions to the forms and approves the TurboTax versions, usually late in the tax year. The process is similar for states that collect income taxes.
In 2001, TurboTax saved financial institution passwords entered by users to servers at Intuit and the home computer.  The programming error was reportedly fixed, but as of 2012 TurboTax offers no option to download a data file directly from the financial institution. Instead, it prompts the user for their login name and password at the financial institution or permits the data to be entered by hand. 
In 2003, Intuit faced vocal criticism for its TurboTax activation scheme.  The company responded by removing the product activation scheme from its product. In 2005 TurboTax extended its offering by allowing any taxpayer to use a basic version of its federal product for free as part of the Free File Alliance . By 2006 that offer has been limited to free federal online tax preparation and e-file for taxpayers whose adjusted gross income is $28,500 or less (or $52,000 for those in the military) and those 50 or under. TurboTax has received a number of complaints regarding its advertising of the free version. For filers who use this basic version of the software, federal filing is free. However, state tax filing is not free, and the cost of using TurboTax to file state returns is not presented to the user until they’ve already completed entering their information for federal returns.
In 2008, Intuit raised the price of TurboTax for desktop customers by $15 and included a free e-filing for the first return prepared.  The company’s new “Pay Per Return” policy was criticized for adding a $9.95 fee to print or e-file each additional return after the first, including returns prepared for members of the same household. On December 12, 2008 the company announced that it had rescinded the new policy. 
On January 21, 2009, TurboTax received considerable public attention at the Senate confirmation hearing of Timothy F. Geithner to be the United States Secretary of Treasury . Geithner had testified that he used TurboTax to prepare his tax returns for the years 2001 to 2004 but had incorrectly handled the self-employment taxes due as a result of his being employed by the International Monetary Fund . Geithner made it clear that he took responsibility for the error, which was discovered in a subsequent IRS audit, and did not blame TurboTax. Geithner paid $42,702 in back taxes. Intuit responded by releasing a statement saying “TurboTax, and all software and in-person tax preparation services, base their calculations on the information users provide when completing their returns.” 
In 2014 the Times of San Diego reported that 48% of Americans are not aware they must report their health insurance status on their 2014 tax returns, This report was based on a TurboTax survey conducted by Harris Poll . 
International versions[ edit ]
Intuit also addresses Canadian tax returns with an entirely separate product also named TurboTax, but previously called QuickTax. The French version has retained its original name ImpôtRapide until 2017, when it got renamed TurboImpôt.
Controversies[ edit ]
Writing to the boot track[ edit ]
The 2003 version of the TurboTax software contained digital rights management that tracked whether it had previously been installed on a computer by writing to sector 33 on the hard drive. This allowed it to track if it was on a computer previously, even through reinstalling the operating system. This also caused it to conflict with some boot loaders that store data there, rendering those computers unbootable. 
Opposition to return-free filing[ edit ]
Intuit, the owner of TurboTax, spent more than $11 million on federal lobbying between 2008 and 2012. Intuit “opposes IRS government tax preparation,” particularly allowing taxpayers to file pre-filled returns for free, in a system similar to the established ReadyReturn service in California. The company also lobbied on bills in 2007 and 2011 that would have barred the Treasury Department, which includes the IRS, from initiating return-free filing. An Intuit spokeswoman said in early 2013 that “Like many other companies, Intuit actively participates in the political process.” She said that return-free filing had “implications for accuracy and fairness in taxation.”   This led journalist Dylan Matthews to propose a boycott of the company in 2017.  
In its 2012 Form 10-K , Intuit said that “We anticipate that governmental encroachment at both the federal and state levels may present a continued competitive threat to our business for the foreseeable future.” 
Repositioning of versions[ edit ]
In January 2015 it become known that the Deluxe version no longer supports IRS Schedules C, D, E, and F in interview mode. Although the Deluxe version still allows entry into those schedules by means of “form mode”, doing so may result in the loss of the ability to file electronically. In addition, the Premium version no longer supports Schedule C or F in interview mode. Intuit was widely criticized for these changes and responded with short-term mitigation, although it has not reversed the decision.  On February 5, 2015 Intuit sent a second email apology to current and former customers regarding the decision to remove specific schedules from the Deluxe and Premium versions. Intuit also apologized for their poorly received initial apology sent on January 27. In the February 5 message Intuit announced that they would reverse course in their 2015 Deluxe and Premium versions, including the schedules that were historically included in the software. 
Fraudulent return claims[ edit ]
In an article by Brian Krebs on February 15, 2015 it was reported that Intuit Inc. temporarily suspended the transmission of state e-filed tax returns due to a surge in complaints from consumers about refunds already claimed in their name. 
In a later article on February 22, 2015, Krebs reported that it was alleged by two former employees that Intuit knowingly allowed fraudulent returns to be processed on a massive scale as part of a revenue boosting scheme. Both employees, former security team members for the company, stated that the company had ignored repeated warnings and suggestions on how to prevent fraud. One of the employees was reported to have filed a whistleblower complaint with the US Securities and Exchange Commission. 
Reception[ edit ]
BYTE in 1989 listed MacInTax as among the “Distinction” winners of the BYTE Awards, stating that “several of us have found [it] to be our favorite … a must if you’re doing your own taxes”. 
See also[ edit ]
References[ edit ]
- ^ “Michael Chipman – Forbes” . People.forbes.com. 2012-04-18. Archived from the original on 2009-05-16. Retrieved 2013-12-12.
- ^ Groves, Martha (1993-09-02). “Intuit, Chipsoft Agree to Merge in $225-Million Deal” . La Times. Retrieved 2016-12-29.
- ^ Horn, Jonathan (2014-11-09). “Intuit: An atmosphere to excel” . The San Diego Union-Tribune. Retrieved 2016-12-29.
- ^ “Corporate Profile” . Intuit. Retrieved 2013-12-12.
- ^ InfoWorld – Google Books . Books.google.com. 1999-01-13. Retrieved 2013-12-12.
- ^ Jaroslovsky, Rich (March 1, 1992). “MacInTax: the one and only. (ChipSoft Inc.’s MacInTax Personal 1040 tax preparation software)” . Computer Shopper . HighBeam. Retrieved 2013-12-12.
- ^ Nytimes.com Taking Tax Software for a Walk
- ^ “TurboTax Support: Audit Defense” . Turbotax.intuit.com. 2013-12-06. Retrieved 2013-12-12.
- ^ “Intuit TurboTax Order Status FAQs (2009)” . Intuit.com. Retrieved 2013-12-12.
- ^ “TurboTax Security Glitch May Force 150,000 Investors to Alter Passwords” . LA Times. 2001-04-06. Retrieved 2012-03-04.
- ^ “Importing Your W-2, 1099, and 1098 Forms” . Turbotax.intuit.com. 2013-09-09. Archived from the original on 2013-05-30. Retrieved 2013-12-12.
- ^ Metz, Cade (2003-10-01). “Intuit’s TurboTax Activation Scheme Irks Users” . PC Magazine. Retrieved 2007-06-13.
- ^ “Why has the price of TurboTax increased by $15 this year?” . Turbotax.intuit.com. Retrieved 2013-12-12.
- ^ Elmblad, Shelly (2008-11-25). “TurboTax Removes E-file Fees” . About.com. Retrieved 2008-12-03.
- ^ Ahrens, Frank (2009-01-22). “Treasury Pick Misfiled Using Off-the-Shelf Tax Software” . Washington Post. p. D1.
- ^ Jennewein, Chris (2014-12-03). “TurboTax: Americans Unaware of Obamacare’s Tax Impact” . Times of San Diego. Retrieved 2015-11-24.
- ^ David Becker (January 6, 2003). “Intuit pours oil on TurboTax troubles” . cnet.com.
- ^ a b Liz Day (March 26, 2013). “How the Maker of TurboTax Fought Free, Simple Tax Filing” . ProPublica.
- ^ The Tax Complexity Lobby , Len Burman, Forbes, 4/15/2013
- ^ Matthews, Dylan. “Why I’m boycotting TurboTax this year” . Vox. Retrieved 1 April 2017.
- ^ “The Call for Boycotting TurboTax” . Institute for Policy Studies . Retrieved 1 April 2017.
- ^ Janet Novack (January 22, 2015). “Intuit Offers $25 Refund To TurboTax Deluxe Users Hurt By Software Changes” . Forbes.
- ^ “Intuit Cries Uncle, Will Reverse TurboTax Deluxe Changes” . Forbes.com. Retrieved 2015-11-24.
- ^ “Citing Tax Fraud Spike, TurboTax Suspends State E-Filings — Krebs on Security” . Krebsonsecurity.com. 2015-02-06. Retrieved 2015-11-24.
- ^ “TurboTax’s Anti-Fraud Efforts Under Scrutiny — Krebs on Security” . Krebsonsecurity.com. 2015-02-22. Retrieved 2015-11-24.
- ^ “The BYTE Awards” . BYTE. January 1989. p. 327.
External links[ edit ]
- Official website
- Intuit software
- Tax software
- Wikipedia articles with possible conflicts of interest from April 2017
- Official website different in Wikidata and Wikipedia
- This page was last edited on 21 November 2018, at 19:02 (UTC).
- Text is available under the Creative Commons Attribution-ShareAlike License ;
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