Shutting Down Virginia’s iFile
Okay, this one’s personal. For years I’ve filed my state tax return using iFile, Virginia’s free on-line tax filing service. I do that partly because I’m cheap—I don’t want to pay Intuit $15 to send my return electronically—and partly because it reduces errors and saves the state money.
But this year the General Assembly, with the concurrence of new governor Robert McDonnell, voted to end the iFile program. So next year I’ll go back to mailing in a paper return. A 44-cent stamp costs just 3 percent of Intuit’s bill. I did say I’m cheap, didn’t I?
Roughly 300,000 Virginians will use the program this year—it's clearly popular. So what prompted the state to drop it? It seems that the General Assembly agreed with Delegate Kathy Byron (R-Campbell) that helping people file their taxes is not a “core service of government.” Like all states, Virginia has budget problems and needs to cut costs. Doing away with iFile will save the state roughly $50,000. That assumes, of course, that current users don’t decide to file by mail. At about a buck a pop to process paper returns, the state comes out a loser if many former iFilers choose that route.
Whether or not it’s false economy to end iFile, I question the logic of the state’s choosing not to make it easier and cheaper for people to file their tax returns, especially when it saves the state money. Maybe, as some commentators suggest, it’s kowtowing to tax preparers, who lose business to do-it-yourselfers. Or maybe it’s intended to make taxes hurt more and build pressure against them. But as long as we want the state to provide those core services, we need revenue to pay the bills. Why not make tax collection as easy and economical as possible?
[...] The Obama Administration had proposed that government pre-fill your tax return with information it collects from employers, financial institutions, etc. The idea has gone nowhere, at least in part because of fierce opposition from the tax software industry. Intuit had also temporarily derailed a free file program in California and killed a simple online filing system in Virginia. [...]
[...] The Obama Administration had proposed that government pre-fill your tax return with information it collects from employers, financial institutions, etc. The idea has gone nowhere, at least in part because of fierce opposition from the tax software industry. Intuit had also temporarily derailed a free file program in California and killed a simple online filing system in Virginia. [...]
[...] The Obama Administration had proposed that government pre-fill your tax return with information it collects from employers, financial institutions, etc. The idea has gone nowhere, at least in part because of fierce opposition from the tax software industry. Intuit had also temporarily derailed a free file program in California and killed a simple online filing system in Virginia. [...]
[...] The Obama Administration had proposed that government pre-fill your tax return with information it collects from employers, financial institutions, etc. The idea has gone nowhere, at least in part because of fierce opposition from the tax software industry. Intuit had also temporarily derailed a free file program in California and killed a simple online filing system in Virginia. [...]
I am filing by paper again this year. So one year after the loss of ifile, i wonder how many of us (humans) reverted to filing virginia taxes by mail. we preferred ifile while it was available.
I am again filing by paper for the second year in a row. In addition both of my sons will be filing via paper. Additionally, I own a small business, so all of the corporate stuff will be filed via paper. This was a foolish move – but not terribly surprising…sadly. I would also like to point out that I don’t think it’s cheap to not want to pay someone to do your taxes. If you are capable of doing them (and, in fact, I would take it one step further and say that even if you are not, there should be free options regardless of income level), you should be able to submit them electronically without financial penalty. It’s another example of corporate monies affecting government to the detriment of the citizens, albeit a minor one.
Sounds Interesting but can you make it clear to the state that we want iFile back?
Let me get this straight. There is someone who thinks collecting taxes is not a core function of government? What planet is she from? Back to paper for me.
Going back to paper filing.
Please help make it clear to the state that we want iFile back – please mail your paper form.
Please help make it clear to the state that we want iFile back – please mail your paper form.
It’s not really a core function of government to monopolize the alcohol industry either, but they do.
I would gladly have paid one dollar to the state to maintain the iFile website/filing system.
Why not make it a paid for service? $1 x 300,000 tax patrons is more than enough to cover the $50,000 costs for maintaining the system.
Now I am being forced to pay a vendor for software that will cost at least $15.
And I DO believe it is the governments duty to help individuals (not businesses) with their taxes!
But, wait, businesses still get to use the iFile system for free; it’s just the individuals in Virginia that are being pushed off the system – for a measly $50K.
I am now forced to use paper again after many years of iFile usage.
Government should be looking out for the common man first, and not the companies/lobbies that will ultimately profit.
Wherever money changes hands, there are always those trying – and often succeeding – to find a way to take a piece of the action. In this case, it means using political influence to allow the tax preparation industry to insert their open palms between citizens and government.
I’ve only recently learned of this action by the legislature, and wrote my Delegate and Senator. My Delegate – who voted against this – replied immediately. I have yet to hear from my Senator.
I find it odd that an administration who resists health care reform because it forces people to buy insurance now would force e-filers to buy preparation services or software.
I suspect the real motivation is that it is much easier to delay refunds for paper filers than it is for e-filers. This has happened in the past to Virginia taxpayers. Forcing many to paper is not a good omen for the future.
I would never pay a preparer or use a for cost system, given that with an MPA with a concentration in finance, I know enough about taxation to do it myself. This year, I i-file. Next year, I use paper.