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TurboTax Maker Linked to 'Grassroots' Campaign Against Free, Simple Tax Filing

Intuit and its allies are continuing to work against proposals for what’s known as return-free filing.

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Over the last year, a rabbi, a state NAACP official, a small town mayor and other community leaders wrote op-eds and letters to Congress with remarkably similar language on a remarkably obscure topic.

Each railed against a long-standing proposal that would give taxpayers the option to use pre-filled tax returns. They warned that the program would be a conflict of interest for the IRS and would especially hurt low-income people, who wouldn't have the resources to fight inaccurate returns. Rabbi Elliot Dorff wrote in a Jewish Journal op-ed that he "shudder[s] at the impact this program will have on the most vulnerable people in American society."

"It's alarming and offensive" that the IRS would target the "the most vulnerable Americans," two other letters said. The concept, known as return-free filing, is a government "experiment" that would mean higher taxes for the poor, two op-eds argued.

Op-Eds and Letters Opposing Return-Free Tax Filing

Compare eight letters and op-eds against return-free tax filing have been written by community leaders over the last year.

The letters and op-eds don't mention that, as ProPublica laid out last year, return-free filing might allow tens of millions of Americans to file their taxes for free and in minutes. Or that, under proposals authored by several federal lawmakers, it would be voluntary, using information the government already receives from banks and employers and that taxpayers could adjust. Or that the concept has been endorsed by Presidents Obama and Reagan and is already a reality in some parts of Europe.

So, where did the letters and op-eds come from? Here's one clue:

Rabbi Dorff says he was approached by a former student, Emily Pflaster, who sent him details and asked him to write an op-ed alerting the Jewish community to the threat.

What Pflaster did not tell him is that she works for a PR and lobbying firm with connections to Intuit, the maker of best-selling tax software TurboTax.

"I wish she would have told me that," Dorff told ProPublica.

The website of Pflaster's firm, JCI Worldwide, had listed Intuit among its clients, but removed it after ProPublica contacted them. Pflaster said Intuit had been listed by mistake, but added that the firm does work for the Computer & Communications Industry Association (CCIA), a trade group of which Intuit is a member. Pflaster also said her firm has reached out to multiple groups and encouraged them to share information about the "flaws" of return-free filing.

The only CCIA member that's involved with tax preparation software is Intuit, and it's also the only member of the group that has taken a public position on return-free tax filing.

Intuit has long worked against return-free filing. (See How the Maker of TurboTax Fought Free, Simple Tax Filing.) The company has said in filings with the Securities and Exchange Commission that it views free government tax preparation as a risk to its business.

Last year, the company spent more than $2.6 million on lobbying, some of it to lobby on four bills related to the issue, federal lobbying records show.

Both Intuit and CCIA declined to answer questions about their connections to the letters and op-eds. An Intuit spokeswoman, Julie Miller, said in an emailed statement that Intuit works with many types of groups to support "taxpayer empowerment," and "we feel all points of view deserve to be heard."

"Return Free minimizes the taxpayers' voice and instead maximizes revenue collection for government," Miller wrote. "That kind of anti-consumer policy does not advance taxpayer rights."

 
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