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TurboTax
TurboTax
is an American tax preparation software package developed by Michael A. Chipman of Chipsoft in the mid-1980s.[1] Intuit
Intuit
acquired Chipsoft, based in San Diego, in 1993.[2] Chipsoft, now known as Intuit
Intuit
Consumer Tax Group, is still based in San Diego, having moved into a new office complex in 2007.[3] Intuit
Intuit
Corporation is headquartered in Mountain View, California.[4] TurboTax
TurboTax
for the Mac was originally named MacinTax, and was developed by SoftView.[5] SoftView was in turn purchased by ChipSoft.[6] TurboTax
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.[7]

Contents

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
TurboTax
Deluxe, TurboTax
TurboTax
Premier, etc. TurboTax
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 Turbo Tax software
Tax software
provides taxpayers additional support for their self-prepared returns by offering Audit Defense from TaxResources, Inc.[8] Typically, TurboTax
TurboTax
federal software is released late in the year and the state software is released mid-January to mid-February.[9] TurboTax
TurboTax
normally releases its new versions as soon as the IRS completes revisions to the forms and approves the TurboTax
TurboTax
versions, usually late in the tax year. The process is similar for states that collect income taxes. In 2001, TurboTax
TurboTax
saved financial institution passwords entered by users to servers at Intuit
Intuit
and the home computer.[10] The programming error was reportedly fixed, but as of 2012 Turbo Tax 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.[11] In 2003, Intuit
Intuit
faced vocal criticism for its TurboTax
TurboTax
activation scheme.[12] The company responded by removing the product activation scheme from its product. In 2005 TurboTax
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
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
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
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
Intuit
raised the price of TurboTax
TurboTax
for desktop customers by $15 and included a free e-filing for the first return prepared.[13] 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.[14] On January 21, 2009, TurboTax
TurboTax
received considerable public attention at the Senate confirmation hearing of Timothy F. Geithner
Timothy F. Geithner
to be the United States
United States
Secretary of Treasury. Geithner had testified that he used TurboTax
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
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."[15] In 2014 the Times of San Diego
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
TurboTax
survey conducted by Harris Poll.[16] International versions[edit] Intuit
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 Turbo Tax software
Tax 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.[17] Opposition to return-free filing[edit] Intuit, the owner of TurboTax, spent more than $11 million on federal lobbying between 2008 and 2012. Intuit
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
Intuit
spokeswoman said in early 2013 that "Like many other companies, Intuit
Intuit
actively participates in the political process." She said that return-free filing had "implications for accuracy and fairness in taxation."[18][19] This led journalist Dylan Matthews to propose a boycott of the company in 2017.[20][21] In its 2012 Form 10-K, Intuit
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."[18] 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
Intuit
was widely criticized for these changes and responded with short-term mitigation, although it has not reversed the decision.[22] On February 5, 2015 Intuit
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
Intuit
also apologized for their poorly received initial apology sent on January 27. In the February 5 message Intuit
Intuit
announced that they would reverse course in their 2015 Deluxe and Premium versions, including the schedules that were historically included in the software.[23] Fraudulent return claims[edit] In an article by Brian Krebs on February 15, 2015 it was reported that Intuit
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.[24] In a later article on February 22, 2015, Krebs reported that it was alleged by two former employees that Intuit
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.[25] Reception[edit] BYTE
BYTE
in 1989 listed MacInTax as among the "Distinction" winners of the BYTE
BYTE
Awards, stating that "several of us have found [it] to be our favorite ... a must if you're doing your own taxes".[26] See also[edit]

CompleteTax

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
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
TurboTax
Support: Audit Defense". Turbotax.intuit.com. 2013-12-06. Retrieved 2013-12-12.  ^ " Intuit
Intuit
TurboTax
TurboTax
Order Status FAQs (2009)". Intuit.com. Retrieved 2013-12-12.  ^ " TurboTax
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. Retrieved 2013-12-12.  ^ Metz, Cade (2003-10-01). "Intuit's TurboTax
TurboTax
Activation Scheme Irks Users". PC Magazine. Retrieved 2007-06-13.  ^ "Why has the price of TurboTax
TurboTax
increased by $15 this year?". Turbotax.intuit.com. Retrieved 2013-12-12.  ^ Elmblad, Shelly (2008-11-25). " TurboTax
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
Intuit
pours oil on TurboTax troubles". cnet.com.  ^ a b Liz Day (March 26, 2013). "How the Maker of TurboTax
TurboTax
Fought Free, Simple Tax Filing". ProPublica.  ^ The Tax Complexity Lobby, Len Burman, Forbes, 4/15/2013 ^ Matthews, Dylan. "Why I'm boycotting TurboTax
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
Intuit
Offers $25 Refund To TurboTax
TurboTax
Deluxe Users Hurt By Software Changes". Forbes.  ^ " Intuit
Intuit
Cries Uncle, Will Reverse TurboTax
TurboTax
Deluxe Changes". Forbes.com. Retrieved 2015-11-24.  ^ "Citing Tax Fraud Spike, TurboTax
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
BYTE
Awards". BYTE. January 1989. p. 327. 

External links[edit]

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