[Novalug] Tax Software Example

[Jay Hart]

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

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> 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
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