Turbo Tax Melts Down on Tax Day 554
Raven17 writes "Turbo Tax by Intuit completely melted down under the load from last minute filers. Some people have been having problems as long as 24 hours already. I surrendered 2 hours before the East Coast deadline and schlepped on down to the Post Office."
Back up at the wire (Score:5, Informative)
Personally, I did mine back in February.
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Re:Back up at the wire (Score:5, Interesting)
I've been using TaxCut online since 2003, and it works great.
Re:Back up at the wire (Score:5, Insightful)
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TELL me about it. I just went yesterday, to get water [jeffparish.net] turned on in a new duplex I'm moving to temporariy. They would NOT talk to me, unless I had proof of my SS#. They would not take my word..I had to show documentation. My SS card is packed in storage with all my stuff post Katrina...but, fortunately, there was a SS Dept. office just recently opened in a mall closeby, and they ga
Re:Back up at the wire (Score:5, Insightful)
Well, probably because the IRS doesn't accept tax returns where the SSN field is blank.
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Easier and less of a headache. Besides, they tend to get you more savings than you would by yourself.
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Same here. My algorithm is "If government owes me money, file taxes ASAP, else if I owe government money, file taxes as close to April 15th as possible".
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One needn't wait... one can spec on one's tax forms a date to direct-debit the amount owed, anytime up to 4/15.
Re:Back up at the wire (Score:5, Interesting)
If it's going to save the government money, why should I pay for it?
You should be asking instead (Score:5, Insightful)
the real problem is the tax system and the fact that Congress does nothing to simplify it.
Simplified tax system (Score:3, Funny)
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OTOH, you can be sure that "special processing" doesn't go out of their way to make sure you've taken every deduction you've got coming to you. If
Re:Back up at the wire (Score:4, Informative)
NPR : IRS Urges E-filing - But by Vendors Only, Please [npr.org]
Basically, Intuit (and presumably H&R Block and any other tax software producers) lobby long and hard to make sure the public can't e-file directly to the IRS, only by proxy. So your $16.95 is presumably going entirely to Intuit. Plus the $44.95 (or more, or less if you're lucky) you paid for the software. Plus the additional $29.95 if you have to file to two states.
It's a pretty nice gig.
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Re:Back up at the wire (Score:5, Interesting)
Actually they aren't. Nobody working for the government gets paid with "YOUR TAX DOLLARS".
They get paid with Federal Reserve Notes well before you remit any of your earnings. And they will get paid whether you remit anything or not. Because there is a printing press that will give it to them regardless.
Your tax Reserve Notes go to the Federal Reserve to prevent devaluation of the currency. And since the "money" is created out of thin air, that's really the only reason you pay taxes.
The more dollars the general population has, the less a dollar is worth. So taxation serves to remove as many dollars out of circulation as possible, thus supporting the fiat currency.
When you pay FEDERAL taxes, you are not directly paying for any employees or programs ... as the money is simply printed and given to the Federal Government on demand, to distribute to whomever they want. So why, if money is printed on demand, does the Federal Reserve need YOUR money? They can create as much as they want. They don't need yours.
The reason is value. The more money YOU have, the less *value* your neighbor's money has and the government's money has.
Federal taxation doesn't pay for anything, it simply removes monetary supply from the hands of the populace. Less supply = more demand = curtailed inflation.
In short, your are not paying for anything with taxes. You are just supporting the perceived value of paper and ink that has no intrinsic value in and of itself.
Money is a convention (Score:5, Interesting)
Every word you wrote is absolutely true. From an economic theory standpoint, it's really quite a critical concept. As a philosophical statement, that was really quite deep and insightful (seriously). However, from a strictly pragmatic point-of-view, that is absolutely worthless.
Money is an abstraction which exists for convenience. It saves us from having to carry chickens to the gas station. Rather than being carrying chickens around, we say, here's an abstraction which we'll all agree to deal in. It's a lot easier and less messy than carrying chickens around. The first step was using tokens to represent chickens. Rather than carrying the chicken, we carried a token that represented a chicken. But it quickly became obvious that, hey, all I really care about is the value represented by the token. I don't care about the chicken (maybe I prefer beef anyway). So let's all just agree to say the token represents an abstract concept of value. Saves the trouble of keeping all those chickens around.
It's true that paying taxes "supports the perceived value" of the currency. So does any use of the currency. When I pay for my gas or Internet in US dollars rather than chickens, I'm supporting the currency. When I get paid in US dollars, I'm supporting the currency. When I browse Slashdot and look at the ends, that translates into resources used, which are paid for in US dollars, which supports the currency.
If you prefer, substitute some other tangible good, such as "cows", "cheese", or even "gold" for "chickens". It's all the same concept.
Re:Back up at the wire (Score:5, Informative)
Except that's not at all how the government controls money supply: The Federal Reserve is the source/sink of dollars, not the IRS.
Money supply is controlled by the sale and purchase of bonds and the interest rate, not through taxes. This is why the Fed uses the interest rate to affect inflation. It's the effect on the amount of cash the Fed has to pay out to 'buy back' its bonds. Basically, if the Fed wants more cash in the market, it buys bonds more than it sells them; if it wants to curtail the money supply, it buys fewer bonds back than it sells. Note that the Fed target interest rate is based on the supply and demand for the notes. Also note that it's a target rate - the media and literature always calls it "the target federal funds rate". Because to get that rate, the Fed has to buy or sell its bonds. To increase the rate and "slow down" the economy, the Fed sells more bonds. The reason this increases the rate is because to sell more bonds, it has to make them more lucrative to the purchaser which means a higher interest rate. What happens then is the buyer gives dollars to the Fed in exchange for a bond. Note that a bond is not money, so money has effectively left the money supply.
When the Fed wants to reduce the interest rate, it starts selling fewer and fewer bonds (or buying bonds back). This reduces the supply of bonds so, for a given demand, the "price" the buyers are willing to pay (a lower interest rate) increases. Either way, this either puts dollars directly back into the economy via a buy-back, or indirectly because fewer people are buying the bonds so their cash stays in the system. Buying back takes bonds out of the free market and replaces them with dollars.
This mechanism, while not perfect, also helps adjust the money supply to a larger economy, because when real wealth is created in the economy, the creator of that wealth gets more dollars and more bonds are purchased. When those bonds are purchased back or redeemed for face value plus interest, there is an increase in available dollars. Inflation happens when the market guesses wrong at the interest rate, and more dollars are paid out during redemption than is representative of the current actual wealth. Similarly, if the economy contracts the money supply can also contract because eventually the interest rates on the bonds will fall and less additional money is required to redeem the notes; this will reduce the money supply relative to the amount of wealth. Stagflation happens when the nasty effect of a shrinking economy is paired with increasing inflation. (Yay for basic macroeconomic theory).
Another key thing to remember is that the Fed and money supply only control the tokens representing value in the US; they don't directly control wealth (and, as is important to note, value and wealth are not the same thing).
Re:Back up at the wire (Score:5, Interesting)
Re:Back up at the wire (Score:5, Interesting)
I can't believe that Iran switched 100% to using EUR for oil. China is their biggest customer and they have tons of USD to spend. They probably have tons of EUR as well, but they probably have more USD at this point.
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Money is viewed as a money supply. M1, M2 and M3. US doesn't even publish M3 money supply!!!
For more information about M1,M2 and M3 money supplies,
http://economics.about.com/cs/money/a/money_supply
http://research.stlouisfed.org/fred2/data/M3SL.txt [stlouisfed.org]
http://research.stlouisfed.or [stlouisfed.org]
Re:Back up at the wire (Score:5, Informative)
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It's called war tax resistance [wikipedia.org] and it's an age-old anti-government tradition that has been surprisingly tolerated by the government in recent times."
I guarantee that if you are making any significant money at ALL....and you try to pull this, that the IRS will not be so
I submitted mine (Score:5, Funny)
Perhaps (Score:5, Funny)
Only Fools Wait Until The Last Minute (Score:5, Interesting)
I just don't understand the dorks that wait so long they have no options.
Re:Only Fools Wait Until The Last Minute (Score:5, Informative)
It was basically a manual DNS attack. With so many waiting until the last minute, what do people expect? File at least a day before the deadline. What difference does a day's worth of interest make on the average IRS tax bill? And if people are so concerned about a day's worth of interest, print the damn return and mail it with a check. That way you get a few more days of interest.
All true, but the fact that people wait until the deadline is not news. If you're going to get into the online tax-prep business, you'd better have a stout server. This kind of failure can kill a business.
Re:Only Fools Wait Until The Last Minute (Score:4, Insightful)
Or a stout series of servers, God knows you shouldn't be relying on a single box to handle that information with that liability.
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All true, but the fact that people wait until the deadline is not news. If you're going to get into the online tax-prep business, you'd better have a stout server. This kind of failure can kill a business.
Or a stout series of servers, God knows you shouldn't be relying on a single box to handle that information with that liability.
IBM called; they'd like to sell you some On Demand e-Business infrastructure. (I'd bet Sun has some "grid computing" power to sell as well...)
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Re:Only Fools Wait Until The Last Minute (Score:5, Insightful)
TurboTax should know it's market share, let's pretend it's 75%. That's 180,000,000 *
On NPR they gave a figure that the TurboTax servers were processing like 40 per second.
I do peak load extimation for Unix servers for a living. Somebody at TurboTax screwed up big time, real big time. They should have doubled the number of servers they thought they might have needed. They should have contracted with a company like Google to cache the returns, then process them batchwise as fast as they could.
Re:Only Fools Wait Until The Last Minute (Score:5, Funny)
Excellent, then my tax return could be stored along side my e-mail, calendar, documents, searches, and every website I've visited that uses Double-click or Google ad services
Yuh Huh... (Score:4, Funny)
Peak Load Estimation Guy: You need 300 xeon class servers on optical fibre to handle the load!
Peak Load Estimation Guy's Manager to His Boss: Yeah we'll be fine with a 486 on DSL!
Later...
CEO to Public: There's no way we could have foreseen the huge spike in traffic that caused our servers to melt down.
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In other words, apples and oranges.
If you are talking about database transactions, performance depends on what the transaction IS. It's one thing to process 1500 TPS where your transaction consists of updating a single column in one row, completely another if it updates dozens of tables with triggers and stored procedures.
Re:Only Fools Wait Until The Last Minute (Score:5, Interesting)
Re:Only Fools Wait Until The Last Minute (Score:4, Insightful)
As for people... Combine laziness and hatred and you end up with a gajillion people that will wait until the last possible second to deal with it. It shouldn't be a real big surprise.
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There was a story on NPR a day or so ago on the subject of tax filings. An IRS spokeswoman mentioned that more people than ever (a euphemism for "I don't remember the percentages") are filing electronically. Of those filing electronically, most file last minute like their paper counterparts.
Plus ca change, huh?
At any rate, I don't think it's fair to characterise last-minute filers as fools. Everyone hates hates filing. It's human nature
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(Ok, so only if you don't know that you can post-date your filing, but...)
Re:Only Fools Wait Until The Last Minute (Score:5, Funny)
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I just don't understand the dorks that wait so long they have no options.
More than a decade ago, I a had a friend at a former
Re:Only Fools Wait Until The Last Minute (Score:4, Insightful)
"he won't have spent any of the money he saved on anything to give himself any happiness."
Yes, because you haven't experienced true joy until you get interrupted during dinner by telemarketing calls.
Re:Only Fools Wait Until The Last Minute (Score:5, Interesting)
File a few weeks before. When you file and when you pay can be different, so you aren't actually losing any interest. You can file in January but tell the IRS to deduct it from your bank account on the due date in April. Or you can do the same if you are paying by check (file in January, mail check in April).
Re:Only Fools Wait Until The Last Minute (Score:4, Informative)
Just for those who never thought about this, what you suggest works the other way, as well... As long as they owe you a refund, nothing bad happens if you file a day late.
The IRS bases all its penalties on how much you owe. Don't owe anything? No penalties for filing a day late.
The government cares that it gets your money. It doesn't care so much if you don't get your money.
Re:Only Fools Wait Until The Last Minute (Score:5, Informative)
My gut reaction was that you still have to file on time. But, I stand corrected [irs.gov] and I think you for the information.
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There's no reason I can't start saving up now *and still* keep the $10k in the bank until 4/17. Assuming you're making some non-zero return off of your money, it hurts you to give it away any sooner than you have to. No matter when you start saving for next years taxes (or whatever other confoun
Re:Only Fools Wait Until The Last Minute (Score:5, Interesting)
No it doesn't. They missed the filing deadline; not you. What you are supposed to do here is timely file your 1040 without that information then re-file your 1040 when you get the additional information then either pay the difference with interest or claim the difference as a refund (in many cases this is with interest too). Optionally you can include estimated tax payments on your first 1040 filing if you want to avoid paying interest when you file again. Your final easy option is to file form 4868 for an extension along with your estimated payment. If you expect a refund the best thing is to file 1040 twice so you can go ahead and get your money back. If you expect to pay, the 4868 is much simpler.
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Your above average American has issues budgeting their finances for the month. Your average American would be completely hosed. The deductions are simply a forced budgeting system to ensure the IRS gets paid at least most of what they're due.
-nB
for those of us that done speak Yiddish (Score:5, Informative)
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Ahhh, but the key here is the 'tedious journey' part, which is not conveyed at all if he simply said "I went to the post office."
same as in real life (Score:3, Insightful)
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Re:same as in real life (Score:5, Informative)
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Another great reason (Score:2, Funny)
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Paying them back by giving them so many customers they can't keep up? As a business owner, I'll gladly take some of that "punishment".
As a Hog Farmer (Score:5, Funny)
Turbotax Issues (Score:4, Informative)
Re:Turbotax Issues (Score:5, Insightful)
Because someone has to say it:
Getting a refund compared to having to pay is bad. The government collected too much in taxes (well, more than they are required to by law). This money was denied to you throughout the year. Money which could have been earning interest, used for investments, hell, eating out a few more nights a month.
You get your refund back interest-free from the gov. It's really no different than if you left a $20 in your coat pocket during the winter only to find it the next year. Sure it FEELS GOOD, but, that could have been doing something much more useful than just sleeping in a pocket.
Then again, there are penalties imposed if you fix your W-4 (and other forms) so that they don't withhold anything and you have to pay all your tax once a year. I think that's too bad.
Re:Turbotax Issues (Score:5, Insightful)
And then when my tax bill came at last, it would feel like a hardship.
This is because each time I get paid, I pay my mortgage and bills, transfer a fixed amount into my various savings and investment accounts, and consider whatever is left to be mine to play with.
By getting a refund at tax time, I may have missed out on the interest, but the "found" money is large enough that I won't be inclined to waste it -- I'll make a major purchase, pay off a loan, or -- now that the amount is big enough to mean something to me -- put it into an interest-bearing account or investment.
Plus, the fact that I'm getting a refund is motivation to file in February, and avoid this whole April 15th mess.
So yeah, giving the government an interest-free loan is mathematically foolish -- but when you take psychology into account it can be better than owing them.
Re:Turbotax Issues (Score:5, Interesting)
In my opinion, feeling good is highly underrated. If the psychological joy of getting money back on taxes outweighs the joy from interest incurred from having that money early for someone, then I don't see a problem. God knows we pay enough in entertainment costs in a year to make ourselves feel good.
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For the love of god! You've had four and half months to do your damn taxes! Why are you waiting if you were expecting a refund?!?
Why Wait? (Score:2)
Why not do your taxes in the first couple weeks of January? All your information is fresh in your mind, and you've still got plenty of time. If you owe money, wait to file until the last minute, so all you've got to do is come home from work and click a couple buttons. If you're getting a return, file immediately. I did that this year and got my return in less than a week.
Why people procrastinate on something like this is ridiculous. If the average American put half the time into doing their taxes as they
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But yeah, that's still 2 and a half months.
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Because most companies wait until the very last possible moment to send their W-2's out.
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And the "last possible moment" still gives 2 months or so of time. After working phone support for Intuit during tax season (NEVER. AGAIN.) a few years ago, I can't say I have any sympathy for the procrastinators.
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If you really filed that early, you might investigate amending your return to claim the phone tax credit. A number of changes to the tax code weren't really in place in January. This was the year of the procrastinator, not the pig -- thanks to congress and the IRS.
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why last minute (Score:2)
the earlier you get your refund, the more interest it can accrue in your savings account as opposed to an interest-free loan to Uncle Sam...
no webserver is expected to survive if you way overload it. you can't really blame Intuit/Turbotax on this one.
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assuming you get a refund, personally i like to wait as long as possible before paying the government (which means i didn't give them a interest-free loan like most americans).
But even I'm smart enough to file a few days ahead of the final day
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*every* year on tax filing deadline, either there's a super long line at the Post Office, or the e-filing sites are overloaded. can't people file a bit earlier? even a week ago would've been much better.
Post office lines are one thing. Being a company that sells e-file service with no capacity to actually um...efile...is a whole different matter. If you don't get a refund and want to wait to give your money away till the last possible moment and there's a company who claims you can, why wouldn't you. Plus, if you tried to file on Turbo Tax's website last night, they never even posted a warning that they were experiencing problems. With the size of their company, one would think they'd be able to handl
It's so unfair (Score:5, Funny)
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Netcraft confirms (Score:2, Interesting)
May it be related to moving from Solaris to Linux last summer?
[/me hides]
Re:Netcraft confirms (Score:5, Informative)
The TurboTax web app is hosted @ www.turbotaxonline.com and still runs on Solaris (http://uptime.netcraft.com/up/graph?site=www.tur
Turbo Tax: Pain in the rear (Score:4, Insightful)
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Obligatory Simpson's Quote (Score:3, Funny)
Excellent Sir! (Score:2)
Not Completely. (Score:2)
A lack of planning on your part.... (Score:2)
For next year... (Score:5, Interesting)
Will the procrastinators learn their lesson and file at least a day early? Heck no. They even had two extra days this year. If paying the taxes is the issue, that's what an extension is for.
I am a horrible procrastinator myself, but I guess my greed overpowers that. My taxes were done, returned and spent in February. Woot! New PC!
I also learned a few years back that Turbo Tax is no better than most of the other products out there, free or otherwise. I've been using http://www.taxact.com/ [taxact.com] for the past three years. I usually do the download, but I tried the web version for my mother-in-law's taxes. Very smooth, quick, painless and best of all, completely free. I did my mother-in-law's taxes Sunday, 4/15. That's the latest I've ever filed a return. Guess I'm getting sloppy like the unwashed masses.
This is Lesson 1 in "SaaS for Dummies." (Score:2)
There are limits to this, but it's a basic fact of hosted apps. All of your customers might actually want to use your software at once. At any given time. Therefore, if you have your salespeople signing up a few million more customers, it's time to plow some of the profi
Designed DOS attacks... (Score:2)
Started well before tuesday... (Score:3, Interesting)
I filed monday morning. I'm still waiting for my confirmation. I'm going to have to call the IRS to find out if it was actually transmitted. You have to admit, it's a neat loophole. The government isn't alllowed to entrap you, so they get a corperation to do it for them, and reap the penalty rewards. Hey we gotta pay for GW's spending somehow, right?
I'm not going to be a guinea pig for their e-file fantasies/experments. If I pay a cent in penalties, the IRS will get paper from me for a decade.
From their site... (Score:2)
Update, 6:30am, April 18: Outstanding issues with our servers have been resolved and we are currently processing all customers' returns and requests for status checks at a normal rate. As we mentioned earlier, we are working with the IRS this morning to ensure that returns will be considered as timely filed even if transmitted to us past midnight.
We encourage customers to continue trying to e-file; if you have been unable to successfully transmit, please try again.
If you have transmit
haha stupide people (Score:2)
or
"I pay the Homer tax, let the bear pay the bear tax."
Extended IRS deadline for East Coast Filers (Score:2, Informative)
The IRS [irs.gov] website says:
The wisdom of Homer Simpson (Score:2)
Lisa Simpson: "Dad, you have to file your taxes every year."
[Homer scream]
E-File is a scam for the consumer (Score:2)
It was a sweetheart deal made in some back room years ago - the IRS will not accept E-Filings from private citizens except v
2-day Extension (Score:5, Informative)
EULA (Score:4, Informative)
efiling a ripoff (Score:4, Interesting)
Re:efiling a ripoff (Score:4, Interesting)
efile + direct deposit means a refund in (usually) 72 hours or less. It's almost instant money.
mailed + direct deposit means a refund in 2-3 weeks. Very acceptable, and if you're cheap like me it's a great option.
mailed + mailed check means a refund in a month or two.
Mailing a check is apparently the biggest delay. So if you, for whatever reason, efiled and want a paper check, you're wasting your money.
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I did mine already last year!
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I know people just assume that the IRS would be unreasonable, but Tax software takes so much of the load and expense off the IRS that they will do anything cost free to get people to use eFiling. Intuit might give people a refund off of the cost of eFiling if they paid extra. (in the form of a coupon for next year)
You could try to sue, but Intuit and the IRS are being so reasonable that I don't think you could win.