Page 25 - VTaxOnDemand Independent Industry Analysis of Accounting Industry

DIY Tax Preparation Software

Tax Preparation Software Competitors 29
1.) TurboTax
2.) Tax Slayer
3.) Jackson Hewitt
4.) H&R Block
5.) Tax Act
6.) FreeTax USA
7.) EZ Tax Return
8.) eSmart Tax
9.) Fileyourtaxes.com

Perils
1.) Identity Theft and Cyber Security Threats 30
a. TurboTax: The FBI is investigating cases of fraudulent tax returns filed using
TurboTax software. The probe comes after a number of states, including
Minnesota, Utah, Alabama, and Georgia, reported a spike in potentially fraudulent
tax returns being filed by scan artists attempting to steal tax refunds.
b. H&R Block: Identity Thieves Infiltrated Tax Office in Bronx, a Suit Says 31
c. Tax Act: In January, TaxAct suspended a small number of accounts – less than
0.25 percent (less than ¼ of 1 percent) – after identifying instances of suspicious
activity. 32
d. Tax Slayer: As a result of ongoing security reviews, TaxSlayer identified a small
percentage of its customers whose accounts may have been accessed by someone
who obtained their username and password from another online service.
2.) Improper Tax Liability Calculation
a. TurboTax: A spokesperson for Intuit, the maker of TurboTax, defended the
popular software. "I suspect any claim that TurboTax did not alert a customer to
the availability of the election is not accurate" said Bob Meighan, vice president
of customer advocacy for Intuit. "TurboTax definitely alerts customers to the
election option and fully explains the implications. This is a clear case of a
customer improperly using the software or at least using it in a manner which will
not provide the guidance and tips one would expect from software." ...... 33
b. H&R Block: H & R BLOCK had an error in their software for 2009 tax year, and as a
result, I owe the government almost $2000 (that's right TWO THOUSAND
DOLLARS!). 34
3.) Online help can be insufficient 35

29 http://www.pcmag.com/article2/0,2817,1904319,00.asp
30 http://www.foxbusiness.com/markets/2015/02/11/is-low-cost-online-filing-worth-risk.html
31 http://www.nytimes.com/2010/04/09/nyregion/09hrblock.html
32 http://www.forbes.com/sites/kellyphillipserb/2016/02/05/identity-theft-a-concern-as-two-tax-preparation-
software-companies-announce-unusual-activity/#32f4c2ad2adb
33 http://taxprof.typepad.com/taxprof_blog/2005/03/irs_grants_reli.html
34 http://www.complaintsboard.com/complaints/h-r-block-c362645.html
35 http://money.usnews.com/money/blogs/my-money/2012/02/16/the-pros-and-cons-of-filing-your-own-taxes

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