Turbo Tax

[Florida]

The server is so overwhelmed people are not able to file before midnight. Check out the TT forums and see what people are doing in response. This is terrible!!!

[Red Cedar PM]

Do you have a link to the forums?

Intuit is a horrible company with horrible customer service. I am not surprised that this is going on. I had a good buddy of mine who did his girlfriend's taxes on Turbo Tax. He tried doing a part-year state return because she moved and TT said she owed $3,000 in state tax on $10,000 of income. He finally came to me for help after he sat on the phone getting the runaround from their customer service for 3 hours and got nowhere.

[Nikki]

H & R Block puts out a tax softwar program (like TurboTax) that for me at least, works quite well.

Now, it should be pointed out that waiting until the very last moment to file your taxes is......what's the word?.......oh yes, stupid! Each year, I adjust my withholdings so that come tax season I am close to zero, plus or minus $50. Like last year and the year before, when the tiny state refund paid for the tiny federal tax. I filled the state return immediately, and then when the refund arrived, I used it to pay the federal tax owed.

Sure hope all those late filers had access to a post office staying open until mdnight, otherwise I am guessing they are now officially late filers.

Question - when do you think the first lawsuit against Inuit gets filed over this debacle? By this Friday, or sooner?

What did the Eskimos have to do with it?

[Bud Dickman]

IRS forgives last-minute filers delayed by TurboTax glitch
Associated Press
Article Launched: 04/18/2007 09:47:23 AM PDT


SAN FRANCISCO - The Internal Revenue Service said Wednesday it would not impose late fees for users of the popular TurboTax and ProSeries software who missed the tax-filing deadline because Intuit Inc.'s servers became overwhelmed by a flood of last-minute returns.
A record number of returns from individual taxpayers and accountants caused delays Tuesday in customers receiving online confirmation that their tax returns had been submitted successfully, said Harry Pforzheimer, a spokesman for the Mountain View-based company that makes the software. In some cases, the delays caused taxpayers to miss the midnight deadline.

IRS spokesman Bruce Friedland said filers who encountered delays with Intuit's servers will not be penalized if their returns rolled in late. The reprieve also extends to people who tried to file Tuesday night but could not.

Penalties for late filing start at 5 percent of the unpaid taxes per month, and max out at a total of 25 percent.

"They will not be penalized for filing late," Friedland said. "We will do everything we can to assist taxpayers affected by the situation. If people couldn't e-file last night, we encourage them to file as soon as they can."

Intuit said the delays began early Tuesday and became worse as the midnight filing deadline approached. At its peak, Intuit was processing 50 to 60 returns per second, Pforzheimer said.

Usually, it takes only a few minutes after hitting the submit button for TurboTax users


to get a message indicating the transaction has gone through. By Tuesday evening, it was taking hours, Pforzheimer said.
"If you are sitting there and just did your taxes and want to get assurance it's been filed, it has to go into the queue," he said. "We are processing as quickly as we can given the unbelievable demand and the last-minute demand. You can't increase capability quickly enough to solve the problem for every single individual hitting the OK button."

Kansas City, Mo.-based H&R Block Inc., whose TaxCut software also allows people to file electronically, could not be reached Tuesday to determine if it also experienced processing problems.

Pforzheimer declined to estimate how many people had e-filed returns through Intuit so far. The company said last month that it had sold nearly 11 million copies of its TurboTax federal software as of March 17, although not everybody who uses the tax preparation software files electronically.

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On the Net:

[Judge Roy Bean]

Anyone who trusts HSBC/Blockhead to do their taxes deserves whatever happens to them. They scammed thousands of people last year who expected refunds only to find HSBC was acting on behalf of any number of dubious and unchallengeable debt collectors. If you thought you were getting a refund and one of the bottom-feeders was hooked in with HSBC on the deal, they got paid out of your refund no matter if it was valid or not. Getting it back would have taken thousands of dollars in legal expenses.

I wouldn't trust them as far as I could throw a B-17.

[Nikki]

Okay, if my personal computer crashed, lost power due to a storm, or lost the Internet because Comcast was ensuring their 95% reliability guarantee, I'd be stuck with a 5% penalty and no way to fight it except for Tax Court. (Unless I worked for the IRS then I'd be fighting for my job)

But a corporation messes up (and people didn't have the smarts to e-file a day or two earlier) and all is automatically forgiven.

There is something wrong with that picture.

The appropriate response from the IRS should have been "Tough. Taxpayers pay the penalty and then go after Intuit, according to its guarantee, to repay them."

Not only is the IRS forbidden to provide a service in competition with the for-profit (and lobbying) tax software industry, it looks like the Service can't even hold the industry to the same standard as it does the taxpayers.

[webhick]

lost power due to a storm

We just got power back at the office today. Been out since Monday. IRS initially gave us a 48 extension of time, and now it's been extended further.

Relief for April 16 Storm Victims

[Nikki]

Quasi-relief

Q: Will interest be waived on payments made after April 17, 2007?

A: No. We do not have the authority to waive interest on any underpayment of tax due April 17, 2007, that is paid late unless there is a Presidential disaster declaration.

But, interestingly,

Q: Who is covered by this extension?

A: This relief applies to taxpayers who have been affected by the storm on April 16 leading up to the April 17, 2007, filing deadline. Affected taxpayers located outside the Northeast are covered if they are prevented from filing in a timely manner because of the storm.

Q: Why aren't specific states listed? Is my state return covered by this extension?

A: We decided not to list specific states because of the widespread nature of the storm and transportation issues that could affect people located outside the Northeastern corridor. You will need to contact your respective state tax agency regarding any filing deadline issues pertaining to your state tax return.

I wonder who, with a loud enough voice in the right place, caused that?

[webhick]

The interest on unpaid taxes aren't so bad. It's the penalties that hurt.

Q: Do people need to attach a justification?

A: No, but they can mark the April 16 Storm designation on the top front page of their return. If you were eligible for the extension of time to file and pay, and timely filed and paid by April 26, 2007, and you still receive a penalty notice, contact the number on the notice and explain that you were eligible for the extension.

It appears to me that they're waiving the penalties.

[Demosthenes]

lost the Internet because Comcast was ensuring their 95% reliability guarantee

FIOS! I've had it 15 months and haven't lost a connection yet...

[Nikki]

Not everyone can afford private Fiber Optic service to their home / office.

[Judge Roy Bean]

Not everyone can afford private Fiber Optic service to their home / office.

It's less than cable 'round here and rock-solid.

[Demosthenes]

I'm even switching to FIOS TV instead of cable in the next couple of months.