TCS - More on Tax Software, Recalls, and Scams

More on Tax Software, Recalls, and Scams

by Ira Wilsker
Golden Triangle PC Club
From the February 2003 issue of the I/O Port Newsletter

Last week in the EXAMINER, I had a column on the two most popular income tax software preparation programs, H&R Block’s TaxCut, and Intuit’s TurboTax. Since I wrote that column, some new information has been released.

First, the good news; the IRS recently announced a program that may allow millions more taxpayers to calculate their taxes online for free, and file them at no charge with the IRS on the IRS E-FILE system. The IRS has created the “Free File Alliance”, a cooperative arrangement between the IRS and several private organizations to provide free online federal income tax preparation services to qualified individuals, along with free electronic filing. The goal of the IRS and the alliance is, according to the IRS website, to “…provide free tax preparation and filing to at least 60 percent of the American taxpayers, or approximately 78 million people”. Generally, those using the short 1040EZ form qualify, but each provider is free to set their own qualifications. H&R Block is offering the free service to eligible taxpayers with an adjusted gross income of less than $28,000, and Intuit is offering its online version of TurboTax free to qualified individuals with an adjusted gross income less than $27,000, or to most taxpayers qualified for the “Earned Income Tax Credit.” Some companies, such as “TaxSlayer” are offering free services to all active duty military personnel. Another company, “TaxAct”, is offering the services to individuals with an income greater than $100,000. “TaxBrain” is offering the service to most taxpayers over the age of 50, while “OnlineTaxes” is offering the service free to anyone younger than 20. Some other providers are offering free services to all residents of specific states, but so far, Texas and Louisiana are not listed. A full list of free providers, and their individual eligibility requirements is available online at http://www.irs.gov/app/freeFile/jsp/index.jsp. While this is an online program, requiring internet access, it is accessible from public computers commonly available in libraries, schools, and other public places with internet access. Several community service agencies, including many religious organizations, will also be providing public access to the service.

According to the IRS website at www.irs.gov, those eligible will benefit by quicker tax preparation, faster refunds, built in accuracy and error checking, and acknowledgement of receipt of electronically filed forms. The private providers of the service have pledged to strictly respect the privacy and confidentiality of filers.

Now, there is some possible bad news about one of the popular income tax programs, TurboTax, regarding a controversy about a utility included in TurboTax. Several media websites are reporting that TurboTax is using a product activation and copy protection system called “Safecast” or “C-Dilla”. A product key based on the computer’s configuration is transmitted to Intuit once the software is installed, and Intuit sends back a code that unlocks the software. Safecast possibly prevents the software from being run on a computer after that machine has been upgraded, and monitors the CD-RW drive, preventing backup copies of the CD. Concerns have also been expressed that if a user upgrades his hardware after filing his taxes, TurboTax will only have limited functionality. Anecdotes are also appearing online that users who installed TurboTax, and recently purchased a new computer, have been unable to reinstall their TurboTax on the new computer. If installed on a new computer, some reports claim that tax forms cannot be printed or amended. Simply, taxes can be prepared and filed only from a single computer; if the computer is upgraded or replaced, TurboTax will not fully function. Safecast supposedly also monitors the computer even when TurboTax is not running, consuming about a megabyte of memory. It has also been alleged that Safecast remains on the system and monitors even if TurboTax is uninstalled. To help soothe over the controversy, Intuit, the publisher of TurboTax, recently released an uninstaller for Safecast. According to the Intuit website, the uninstaller will automatically be provided TurboTax users when the user updates the software. Intuit, which has a reputation of being responsive to consumers, says that they will monitor the situation, and respond accordingly.

PRODUCT RECALL

American Power Conversion, also know as “APC”, announced the recall of some if its “UPS” or uninterruptible power supply products, due to a potential fire hazard. About 900,000 of the units were sold in the US, and manufactured between November 2000, and December 2002. These UPS systems were sold through office supply and electronics stores, catalogs, and other retail outlets, and are models BACK-UPS CS 350 and 500. The recalled units can be identified by the model markings on the front, and by the serial numbers located on the bottom. Only units with serial numbers having the first six characters in the following ranges are affected; AB0048 through AB0251, BB0104 through BB0251, and JB0125 through JB0251. Units with an “R” at the end of the serial number are not being recalled. More information on the recall can be found on the APC website at www.apc.com, or by calling APC toll-free at 866 272-7359.

ONLINE SCAM ALERT

The National Council of Better Business Bureaus has issued an alert about an online service offering to file consumer complaints with the BBB and other agencies for a fee. The service calling itself “ConsumerProtectionAgency.us” is a business, not a consumer protection agency. "There is no need for consumers to use third parties or to pay a fee in order to file a complaint with the BBB," said Ken Hunter, president and CEO of the Council of Better Business Bureaus. This business, which uses paid sponsorships and ads on search engines under the search term “consumer protection”, has an unsatisfactory rating from the BBB.



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Tulsa Computer Society 2/02/2003
Don Singleton, President