CalFile#ReadyReturn

More than 20 other countries implement prepopulated returns for some of their taxpayers.{{Cite book|url=https://www.oecd.org/tax/forum-on-tax-administration/database/Table%C2%A07.3.%20Personal%20income%20tax%20returns-Use%20of%20electronic%20filing%20and%20pre-filling.xlsx|title=Spreadsheet: Tax Administration 2013: Comparative Information on OECD and Other Advanced and Emerging Economies|year=2013|doi=10.1787/9789264200814-en|isbn=9789264200807}} Denmark began a prefilled return program in 1988, and has an 80-percent participation rate. Chile, Finland, Malta, New Zealand, Norway, and Sweden have similar programs available to most taxpayers. Singapore, South Africa, Spain, and Turkey have similar programs available to at least 30 percent of taxpayers. Australia, Estonia, France, Hong Kong, Iceland, Italy, Lithuania, and Poland have similar programs available and are used by some taxpayers.{{Cite book|url=https://www.oecd-ilibrary.org/taxation/tax-administration-2013_9789264200814-en#page242|title=Tax Administration 2013: Comparative Information on OECD and Other Advanced and Emerging Economies|year=2013|doi=10.1787/9789264200814-en|isbn=9789264200807}}{{Cite web|url=https://www.forbes.com/sites/kellyphillipserb/2015/04/03/fix-the-tax-code-friday-should-irs-file-your-return-for-you/|title=Fix The Tax Code Friday: Should IRS File Your Return For You?|first=Kelly Phillips|last=Erb|website=Forbes}}

In the 1990s, Michigan offered return-free filing but dropped the program due to lack of participation, Louisiana planned but dropped implementation due to Y2K problems,John Rappa, Chief Analyst. [https://www.cga.ct.gov/2017/rpt/2017-R-0019.htm States Allowing Income Tax “Return-Free Filing”] Office of Legislative Research, Connecticut General Assembly January 24, 2017 and Minnesota proposed but did not enact return-free filing.[https://web.archive.org/web/20150918214515/http://www.revenue.state.mn.us/research_stats/revenue_analyses/2007_2008/revenue_analysis_2007_2008_senate_files_sf0665(hf0843)_1.pdf Analysis of SF 665 (Rest) and HF 843 (Benson)], Minnesota Department of Revenue (March 2, 2007)

In March 2017, the effort to establish ReadyReturn in California was the subject of an episode of NPR's Planet Money podcast.{{Cite web|title=Episode 760: Tax Hero|url=https://www.npr.org/sections/money/2017/03/22/521132960/episode-760-tax-hero|access-date=2021-05-16|website=NPR|language=en}}

In 2004, the FTB staffers told Joseph Bankman,Joseph Bankman [https://www.law.nyu.edu/sites/default/files/Mr.%20Smith%20Gets%20an%20Education_%20Why%20it%20is%20so%20Hard%20to%20get%20Easy%20Tax%20Filing%20-%20Bankman_0.pdf “Mr. Smith Gets an Education: Why it is so Hard to get Easy Tax Filing.”] a leading scholar in the field of tax law, a clinical psychologist,{{Cite web | url=https://law.stanford.edu/2018/04/09/tax-time-really-need-painful-anxiety-ridden-process/ | title=It's tax time! Does it really need to be such a painful and anxiety-ridden process? }} and professor of law and business at Stanford Law School, that they realized that they had all the data they needed to fill out Californians' tax returns for millions of Californians whose entire income came from one job.

In 2005,{{Cite web|url=https://www.washingtonpost.com/opinions/americans-shouldnt-be-responsible-for-filing-tax-returns--the-government-should/2017/03/30/e91d8cd8-0979-11e7-93dc-00f9bdd74ed1_story.html|title=Opinion: Americans shouldn't be responsible for filing tax returns, the government should|first=John|last=Klotsche|date=March 30, 2017|via=washingtonpost.com}} Joseph Bankman worked with the state of California to create ReadyReturn, a pilot study with a completed tax return prepared by the state (not an individual or tax professional) that was available to single, no-dependant, standard-deduction, one-employer, wages-only taxpayers for the 2005 filing season.{{Cite book|url=https://books.google.com/books?id=EwvQUK9Q7LgC&q=ReadyReturn&pg=PA511|title=California Income Tax Manual 2008|first=Kathleen K.|last=Wright|date=February 5, 2008|publisher=CCH|isbn=9780808018469|via=Google Books}}

When the FTB launched the ReadyReturn website, Intuit sued and lobbied California legislators to kill the program.{{Cite journal|url=https://www.csmonitor.com/Business/2008/0415/p01s05-usec.html|title=Will the Simple Return end April 15 tax agony?|date=April 15, 2008|journal=Christian Science Monitor}}{{Cite web |last=Holtzblatt |first=Janet |date=December 2006 |title=Implications of Return-Free Tax Systems for the Structure of the Individual Income Tax |url=https://icepp.gsu.edu/files/2015/03/ispwp0630.pdf |access-date=September 16, 2022 |publisher=Andrew Young School of Policy Studies}}{{Cite web |last=Leubitz |first=Brian |date=June 6, 2006 |title=ReadyReturn Dies in the Assembly: Another Good Idea Laid to Rest in the California Legislature |url=https://www.calitics.com/index.php/tag/396/ |access-date=September 16, 2022 |website=calitics |language=en-US}}

In the pilot, taxpayers were allowed to file the return as given to them, to modify and then file it, or to ignore it and file however they normally would.{{Cite web|url=https://www.taxpolicycenter.org/briefing-book/what-was-experience-return-free-filing-california|title=What was the experience with return-free filing in California?|website=Tax Policy Center}} Of the 50,000 participants in the pilot, 38,500 chose to ignore the return and approximately 11,500 filed it.{{cite book|last=Mikesell|first=John L.|title=Fiscal Administration: Analysis and Applications for the Public Sector, Eight Edition|year=2010|publisher=Wadsworth|location=Boston, Massachusetts|isbn=978-0-495-79582-7|pages=366}} A survey of pilot participants found more than 90 percent said they saved time using ReadyReturn and that it was more convenient than the system they had used previously. 99 percent said they would use it again the next year.{{cite book|last=Furman|first=Jason, Jason E. Bordoff|title=Path to prosperity: Hamilton Project ideas on income security, education and taxes|year=2008|publisher=Brookings Institution Press |location=Washington DC |isbn=978-0-8157-3013-2 |pages=300 |url=https://books.google.com/books?id=n0ntgoDT4tkC&q=readyreturn&pg=PA300}} 0.3 percent of ReadyReturn filings contained errors versus 3.1 percent of non-ReadyReturn filings.{{cite book|last=University of New South Wales Australian Taxation Studies Program|title=International Tax Administration: Building Bridges|year=2010|publisher=CCH Australia Ltd.|location=Sydney, Australia|isbn=978-1-921701-29-0|pages=181|url=https://books.google.com/books?id=jes84qL5sAcC&q=readyreturn&pg=PA181}}

Between 2001 and 2010, Intuit Inc., maker of the tax-preparation software TurboTax, spent more than $1.7 million (equivalent to ${{Formatprice|{{inflation|US|1700000|2010}}}} in {{Inflation/year|index=US}}{{Inflation/fn|index=US}}) on lobbying in an attempt to kill ReadyReturn.{{Cite web|url=https://capitolweekly.net/turbo-tax-maker-intuit-again-is-mired-in-political-turmoil/|title=Turbo Tax maker Intuit, again, is mired in political turmoil|date=September 24, 2009|website=Capitol Weekly}}{{Cite web|url=https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free?token=yIzUwxhFBlPUbcgl8aMwDk7gQ6AdqbgA|title=Inside TurboTax's 20-Year Fight to Stop Americans From Filing Their Taxes for Free|first1=Justin|last1=Elliott|first2=Paul|last2=Kiel|website=ProPublica}}{{Cite web|url=https://www.propublica.org/article/how-the-maker-of-turbotax-fought-free-simple-tax-filing?token=Gg58888u2U5db3W3CsuKrD0LD_VQJReQ|title=How the Maker of TurboTax Fought Free, Simple Tax Filing|first=Liz|last=Day|website=ProPublica}}{{cite news|last=Ventry|first=Dennis J.|title=Intuit's end-run|url=https://www.latimes.com/archives/la-xpm-2010-jul-21-la-oe-ventry-intuit-20100721-story.html|access-date=25 December 2011|newspaper=Los Angeles Times|date=21 July 2010}} A bill to provide explicit statutory authorization for ReadyReturn and to make the program permanent died without a vote in the 2006 session of the California State Legislature.Jim Sanders, Tax-Return Bill Dies in Assembly, Sacramento Bee, June 2, 2006, p. A4{{Cite web|url=https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=200520060SB1355|title=Bill Text - SB-1355 Income tax returns: ReadyReturn pilot program.|website=leginfo.legislature.ca.gov}}{{Cite web|url=https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=200520060AB1046|title=Bill Text - AB-1046 Income tax: ReadyReturns.|website=leginfo.legislature.ca.gov}}LA Zelenak. [https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=2615&context=faculty_scholarship Justice Holmes, Ralph Kramden, and the Civic Virtues of a Tax Return Filing Requirement] 2007. California State Controller Steve Westly said he was stunned by the response from taxpayers who used the program as part of the pilot project, about 96 percent of whom said it is a service government should provide, and one they would use again,

"I absolutely have come to believe that ReadyReturn is the right thing to do".
—California Controller, Steve Westly{{Cite web|url=https://www.latimes.com/archives/la-xpm-2006-dec-05-me-taxes5-story.html|title=Second life for state tax program|date=December 5, 2006|website=Los Angeles Times}}

No ReadyReturn forms were used for the 2006 tax year,{{Cite web|url=https://www.accountingtoday.com/news/calif-tax-board-okays-return-of-readyreturn|title=Calif. Tax Board Okays Return of ReadyReturn|date=December 6, 2006|website=Accounting Today}} but the FTB revived it on their own for the 2007 tax year, expanding it to cover one million Californians.{{cite book|last=Graetz|first=Michael J.|title=100 Million Unnecessary Returns: A Simple, Fair, and Competitive Tax Plan for the United States|year=2010|publisher=Yale University Press|location=New Haven, Connecticut|isbn=978-0-300-16457-2|pages=49|url=https://books.google.com/books?id=kUtkaHI_TkEC&q=ready+return+intuit&pg=PA48}}{{Cite web|url=https://www.sfgate.com/bayarea/article/SACRAMENTO-Tax-board-votes-to-extend-2544345.php|title=SACRAMENTO: Tax board votes to extend ReadyReturn pilot program - Software firms, rights groups say move is illegal|first1=Lynda|last1=Gledhill|date=December 5, 2006|website=SFGate}}

In 2012, 88,652 California taxpayers used the system, and, with paper returns costing more than seven times a ReadyReturn return to process, it saved the state an estimated $125,000.[https://web.archive.org/web/20131109225355/https://www.ftb.ca.gov/aboutFTB/tool_kits/ReadyReturn/2013_Tool_Kit.pdf ReadyReturn: Your California tax return ready and waiting for you], California Franchise Tax Board (January 17, 2013) 99 percent stated they were satisfied with ReadyReturn, 97 percent stated this is the type of service government should provide, 96 percent stated it was more convenient than how they filed in the past, 95 percent stated it saved them time, and 98 percent stated they would use it again.{{Cite web|url=https://www.policygenius.com/blog/intuit-turbotax-return-free-filing/|title=Why doesn't TurboTax want your taxes to be simple?|date=March 1, 2016|website=Easy Money by Policygenius}}{{Cite web|url=https://priceonomics.com/the-stanford-professor-who-fought-the-tax-lobby/|title=The Stanford Professor Who Fought the Tax Lobby|last=Mayyasi|first=Alex|date=March 22, 2017|website=Priceonomics|access-date=April 24, 2017}}{{cite web|url=https://www.motherjones.com/politics/2013/03/intuit-turbotax-fought-free-simple-tax-filing|title=How the Maker of TurboTax Fought Free, Simple Tax Filing|first=Liz|date=March 26, 2013|publisher=Mother Jones|author=Day}}{{Cite web|url=https://www.motherjones.com/politics/2006/03/taxes-made-tolerable/|date=March 2013|publisher=Mother Jones|title=Taxes Made Tolerable|first=Robin|last=Mejia}}{{Cite web|url=https://sunlightfoundation.com/2013/04/15/tax-preparers-lobby-heavily-against-simple-filing/|title=Tax preparers lobby heavily against simple filing|first1=1440 G. Street NW|last1=Washington|first2=DC 20005 202-742-1520 Call with|last2=Skype|date=April 15, 2013|website=Sunlight Foundation}}

CalFile{{Cite web|title=File directly with us — for free.|url=https://www.ftb.ca.gov/file/ways-to-file/online/calfile/index.asp|url-status=live|archive-url=https://web.archive.org/web/20200119142326/https://www.ftb.ca.gov/file/ways-to-file/online/calfile/index.asp |archive-date=2020-01-19 |website=California Franchise Tax Board}} is the current free tax preparation program, initiated by the FTB, to file state tax returns online directly to the FTB.{{cite web |title=How to File a California State Tax Return {{!}} Credit Karma Tax® |url=https://www.creditkarma.com/tax/i/how-to-file-california-state-taxes |website=Credit Karma |access-date=9 January 2021 |date=12 October 2018 |quote=E-file and pay for free with CalFile through the Franchise Tax Board’s website.}}{{cite web |title=California Franchise Tax Board - Case Studies |url=https://www.humanfactors.com/case-studies-caftb.aspx |website=Human Factors International |quote=FTB suspected that much of its site was underutilized – either because people couldn't find information or didn't know what to look for. FTB was especially eager to increase the usage of CalFile, its online filing feature. At the start of a major redesign, HFI performed an expert review and conducted usability testing on both the existing website and a new prototype. By getting usability analysis and recommendations early in the redesign process, FTB minimized the cost of implementing changes.}}{{cite news |last1=Prah |first1=Pamela M. |title=States' Free Online Tax Filing Services Going Underused |url=https://www.govtech.com/archive/202720241.html |access-date=9 January 2021 |work=Government Technology |agency=Stateline.org |publisher=e.Republic |language=en |quote=California is the only state that has a free online tool that generates the return itself; you don’t even have to enter the numbers. The program ReadyReturn pulls the information from wage reports and past tax returns and then completes a return online. The state touts ReadyReturn as an easy program that allows taxpayers to finish state tax returns in minutes, rather than hours.But not many Californians are using it. Of the 2 million taxpayers who were eligible to use ReadyReturn, just 89,000 used the program last year, according to the state Franchise Tax Board. Some 244,000 Californians used CalFile, the state’s other online tax program, which requires that taxpayers enter their own information, the board said. In a nutshell, ReadyReturn is for filers with under about $250,000 in income and CalFile is for wealthier taxpayers. ReadyReturn is not without controversy. It started out as a pilot in 2005, but faced opposition from the industry, particularly Intuit, producer of TurboTax.}}{{cite news |last1=Bankman |first1=Joseph |last2=Hemel |first2=Daniel |last3=Ventry |first3=Dennis |author1-link=Joseph Bankman |title=Why filing taxes isn't easy |url=https://www.politico.com/agenda/story/2018/07/18/tax-filing-congress-irs-000683/ |access-date=9 January 2021 |work=The Agenda |publisher=POLITICO LLC |date=2018-07-18 |language=en |quote=California already offers a tool, CalFile, which allows residents to prepare and file state income taxes online at no cost. So why doesn’t the IRS do the same?}}{{cite news |last1=Klotsche |first1=John |title=Americans shouldn't be responsible for filing tax returns — the government should |url=https://www.washingtonpost.com/opinions/americans-shouldnt-be-responsible-for-filing-tax-returns--the-government-should/2017/03/30/e91d8cd8-0979-11e7-93dc-00f9bdd74ed1_story.html |access-date=9 January 2021 |newspaper=Washington Post |date=30 March 2017 |quote=This idea for the tax agency to do the heavy-lifting computations is not new. California launched just such a program, ReadyReturn, in 2004 and recently took its best features and folded them into CalFile, the state’s easy-to-use service offering free e-filing. (John Klotsche is a partner and former chairman of the executive committee of the law firm Baker McKenzie. He was a senior adviser to the IRS Commissioner from 2003 to 2008.)}}{{cite news |title=State provides free completed tax returns for many |url=https://www.davisenterprise.com/news/business/state-provides-free-completed-tax-returns-for-many/ |access-date=9 January 2021 |work=Davis Enterprise |publisher=Davis Enterprise |date=11 March 2011 |quote=Last year, nearly 75 percent of all personal income tax returns were filed electronically. Key benefits of e-filing are that tax returns are more accurate; taxpayers get confirmation that FTB received their return, and the state saves paper-processing costs, the news release said. Taxpayers who file online and have their refunds issued by direct deposit often get refunds within one week. Paper-filed returns take longer, up to six to eight weeks depending on the time of year the return is filed.FTB offers CalFile, a free e-file program for more complicated tax filings. This online process takes about 15 to 30 minutes to complete. With CalFile, the taxpayer types in his or her tax information and e-files the return from FTB’s website. More than 6.4 million taxpayers can use CalFile. FTB also produced a short video describing the ease of using CalFile.}}{{cite news |last1=Pender |first1=Kathleen Pender |title=How to get your taxes done, or do them yourself, for free |url=https://www.sfchronicle.com/business/networth/article/How-to-get-your-taxes-done-or-do-them-yourself-10993730.php |access-date=9 January 2021 |work=SFChronicle.com |date=11 March 2017 |quote=Most California taxpayers can file their state tax return online for free using CalFile, sponsored by the Franchise Tax Board, but last year only about 1 percent did. With a Basic CalFile account, you don’t need a PIN, but must enter everything manually. With a Deluxe Account, you will have to wait for a PIN in the mail, but you will be able to view and import data from last year’s tax return, California wage and withholding information, estimated payments and other data the state has on you. (If you get a PIN, don’t wait too long to activate your account.) The income limits to use CalFile are high — $182,459 for single and $364,923 for joint returns. But some things will exclude you, such as capital gains or losses, business income, rental income, distributions from a retirement account before age 59½ and Roth IRA conversions.}} It is available to single users with incomes under $203,341 and married users with incomes under $406,687{{cite web |title=CalFile Qualifications 2020 |url=https://www.ftb.ca.gov/file/ways-to-file/online/calfile/calfile-qualifications.html |website=FTB.ca.gov |access-date=11 January 2021}}{{cite web |title=Franchise Tax Board Announces State Tax Filing Simplified for Many; Other News for State Income Taxpayers |url=https://www.businesswire.com/news/home/20050103005433/en/Franchise-Tax-Board-Announces-State-Tax-Filing-Simplified-for-Many-Other-News-for-State-Income-Taxpayers |website=Business Wire |access-date=9 January 2021 |language=en |date=3 January 2005 |quote=The FTB offers free e-file services through its own CalFile service. CalFile is the FTB's no cost, direct-to-government e-file program. It is available to taxpayers who file the 540 2EZ, 540A, and to a limited degree the 540 long form. CalFile accepts income of nearly $280,000, itemized deductions, and some tax credits.}} and takes 20 minutes to complete a return for most users,{{cite news |title=State Franchise Tax Board announces start of tax return season |url=https://www.losaltosonline.com/news/sections/business/184-business-news/46548- |access-date=9 January 2021 |work=Los Altos Town Crier |date=15 January 2014 |archive-url=https://web.archive.org/web/20140117232319/https://www.losaltosonline.com/news/sections/business/184-business-news/46548- |archive-date=2014-01-17 |language=en-gb |quote=CalFile, a free, easy-to-use e-file option available to more than 6.4 million taxpayers. CalFile accepts taxpayers with income of up to $345,235, itemized deductions and some tax credits. CalFile guides taxpayers through a simple question-and-answer process that takes 15-30 minutes to complete. CalFile offers features such as email confirmation verifying that the return was filed and the ability to save information and return later to finish.}}{{cite news|date=21 March 2019|title=California State Controller gives tax season advice -|work=KUSI|publisher=McKinnon Broadcasting|url=https://www.kusi.com/california-state-controller-gives-tax-season-advice/|access-date=9 January 2021|quote=Most users can complete their return in about 20 minutes using FTB’s free CalFile program}} with direct deposit refunds usually within 7 to 10 days.{{cite news |title=FTB offers last-minute tips for taxpayers |url=http://www.thesungazette.com/article/business/2015/04/15/ftb-offers-last-minute-tips-for-taxpayers/ |access-date=9 January 2021 |work=The Sun-Gazette Newspaper |date=15 April 2015 |archive-url=https://web.archive.org/web/20150808032401/http://www.thesungazette.com/article/business/2015/04/15/ftb-offers-last-minute-tips-for-taxpayers/ |archive-date=2015-08-08 |quote=With tax day now upon us – Wednesday, April 15 – the Franchise Tax Board (FTB) offers tips for taxpayers to save time and money. “This can be a stressful time of year for taxpayers, but they should rest assured that free help is available,” said FTB Chair and State Controller Betty T. Yee.File online in minutes. FTB offers free electronic filing through CalFile, an easy-to-use tool available to more than 6.4 million taxpayers. FTB recommends setting up direct deposit to get a fast refund – generally within 7 to 10 days}}

CalFile became available in 2003.{{cite web |title=PIVOTING AWAY FROM PAPER How the IRS Can Overhaul Customer Service and Transform its Business Practices IRS Oversight Board Public Forum Agenda |url=https://www.treasury.gov/irsob/documents/IRSOB-Public%20Forum%20Agenda040814.pdf |access-date=9 January 2021 |date=May 13, 2014 |quote=PANEL 2: Using Technology to Increase Customer Service for Taxpayers and Preparers: Panelist: Anne Miller, Division Chief, Filing Division, California Franchise Tax Board}}{{cite web |last1=Miller |first1=Anne |title=Pivoting Away from Paper |url=http://www.treasury.gov/irsob/meetings/documents/2014/ca_ftb.pdf |website=Internal Revenue Service Oversight Board Public Forum |publisher=United States Department of the Treasury |access-date=9 January 2021 |date=May 13, 2014 |quote=CalFile was implemented in 2003 as a free, direct-to-government filing option for personal income taxpayers to complete and e-file their California tax return. CalFile leveraged the e-file system developed a decade earlier and the direct filing portal we made available for tax software providers in 1998.}} In 2011, 6.4 million filers were eligible. Some features of ReadyReturn are now part of CalFile.{{Cite web|date=2019-12-08|title=2004 ReadyReturn Pilot|url=https://www.ftb.ca.gov/readyreturn/|url-status=dead|archive-url=https://web.archive.org/web/20050323074504/https://www.ftb.ca.gov/readyreturn/|archive-date=2005-03-23|access-date=2019-12-08|website=Franchise Tax Board}}{{Cite web|date=2014-05-02|title=Your California tax return may be ready and waiting for you - ReadyReturn|url=https://www.ftb.ca.gov/READYRETURN/|url-status=dead|archive-url=https://web.archive.org/web/20140502124659/https://www.ftb.ca.gov/READYRETURN/|archive-date=2014-05-02|access-date=2014-05-02|website=California Franchise Tax Board}}{{cite web|title=What was the experience with return-free filing in California?|url=https://www.taxpolicycenter.org/briefing-book/what-was-experience-return-free-filing-california|access-date=9 January 2021|website=Tax Policy Center|language=en|quote=The pilot program was popular among taxpayers who used it, and California subsequently authorized the widespread availability of ReadyReturns for tax year 2007. The program has now been incorporated into CalFile, the state’s free online tax-filing site.}}

Dennis J. Ventry Jr. professor at UC Davis School of Law, who specializes in tax policy and legal ethics, describes it as a "a reliable, voluntary, safe and free way to calculate and file [...] taxes". The FTB says CalFile annually saves taxpayers somewhere between $4 million and $10 million in tax preparation fees, and the state of California saves approximately $500,000 in digitization overhead and administrative costs.{{cite journal |last1=Lam |first1=Bourree |title=The Fight Over Making Taxes Less Awful |magazine=The Atlantic |date=18 April 2016 |url=https://www.theatlantic.com/business/archive/2016/04/tax-simplication-act/478788/ |access-date=9 January 2021 |quote=The state’s program, CalFile, uses information the state already has to calculate taxes for single filers making up to $169,730 and married filers making up to $339,464 a year.According to the California Franchise Tax Board, CalFile’s annual costs are about $100,000, which goes toward updating the program in accordance with any new tax legislation, and saves the state over half a million dollars a year. (For comparison, the private-sector tax-prep industry is estimated to bring in $10 billion in revenue every year.)}}{{cite news |last1=Howard |first1=John |title=Debate over online state tax filing heats up in Capitol |url=https://capitolweekly.net/debate-over-online-state-tax-filing-heats-up-in-capitol/ |access-date=9 January 2021 |work=Capitol Weekly |date=29 July 2010 |location=Sacramento, California |quote=Intuit, which manufacturers the popular TurboTax program, and others in a business coalition want to curtail the use of free, state-sponsored online tax filing systems. There are two of them. One is Ready Return, a basic, one-step process for taxpayers who use the standard deduction, don’t itemize and only have wage income from one W-2 source. The other is CalFile, which allows itemized deductions and income up to $321,000 for married filing jointly, but is not suitable for some taxpayers, such as those with extensive investment income or business deductions...Chiang noted that private tax preparers have sought dismantling Ready Return for several years, since the establishment of the online pilot program. Chiang spokesman Jacob Roper added that “the state saves a tremendous amount with people who use online filing. A digital return costs 34 cents to process, as opposed to $2.59 for a paper return.” Estimates vary, but the FTB believes Ready Return and CalFile save taxpayers between $4 million and $10 million, while the state saves some $500,000 annually in overhead and administrative costs.}}

CalFile has faced lobbying campaigns by market competitors in private tax-preparing software like Intuit. These lobbying campaigns have dissuaded the Internal Revenue Service (IRS) commissioner from implementing a free online federal tax preparation program.{{cite web |last1=Kaste |first1=Martin |title=IRS Urges E-Filing — But by Vendors Only, Please |url=https://www.npr.org/transcripts/9112083 |website=NPR |access-date=9 January 2021 |language=en |date=March 23, 2007 |quote=The intensity of industry opposition to CalFile has not gone unnoticed in Washington, D.C. In February, IRS commissioner Mark Everson told Congress that he was reluctant to set up an IRS direct e-file system in part because of the bruising battle he witnessed in California...And that leaves federal taxpayers with little prospect of a direct-to-government e-filing system anytime soon...In fact, the industry already ran Big Brother-themed ads in California when tax authorities there were setting up CalFile, a direct e-filing system for state taxes. Lenny Goldberg, the head of the California Tax Reform Association, says Intuit is leading the charge against direct e-filing.}} ProPublica notes that Intuit's product TurboTax "rests on a shaky foundation, one that could collapse overnight if the US government did what most wealthy countries{{cite news |last1=Mayyasi |first1=Alex |title=The Stanford Professor Who Fought the Tax Lobby |url=https://priceonomics.com/the-stanford-professor-who-fought-the-tax-lobby/ |access-date=9 January 2021 |work=Priceonomics |date=March 22, 2017 |language=en |quote=The name for tax filing where the government sends out completed tax forms is return-free filing or pro forma returns. Countries like Sweden and Spain use return-free filing. In Estonia, 95% of taxpayers receive their tax bill online, and many pay with a single click. ReadyReturn was later incorporated into CalFile, which allows Californians to e-file their taxes. Intuit is not a fan.}} did long ago and made tax filing simple and free for most citizens".{{cite news |last1=Elliott |first1=Justin |last2=Kiel |first2=Paul |title=Inside TurboTax's 20-Year Fight to Stop Americans From Filing Their Taxes for Free |url=https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free |work=ProPublica |language=en |quote=But the success of TurboTax rests on a shaky foundation, one that could collapse overnight if the U.S. government did what most wealthy countries did long ago and made tax filing simple and free for most citizens. via : news.ycombinator.com/item?id=21281411}}{{cite web |last1=Ferenstein |first1=Gregory |title=Technology Could Make Tax Day Easy; Lobbying Keeps It Complicated |url=https://readwrite.com/2015/04/15/happy-tax-day-thank-intuit-for-the-pain-of-filing/ |website=ReadWrite |access-date=9 January 2021 |date=15 April 2015 |quote=Unfortunately, Intuit, the maker of TurboTax, has banded with other tax-filing corporations to form a multi-million dollar lobbying machine to halt the government from rolling the technology out nation-wide. In 2010, the Los Angeles Times reported that Intuit spent $1,250,000 lobbying the state, at least in part to kill the pilot and prevent its spread throughout the country. ReadyReturn no longer exists, although some of its features have been rolled into CalFile, a new tax service from the State of California. CalFile allows taxpayers to file their returns directly with the state, but does not appear to automatically estimate their tax liability in advance.}}{{cite book |last1=Bankman |first1=Joseph |author1-link=Joseph Bankman |title=Mr. Smith Gets an Education: Why it is so Hard to get Easy Tax Filing |date=November 19, 2019 |url=https://www.law.nyu.edu/sites/default/files/Mr.%20Smith%20Gets%20an%20Education_%20Why%20it%20is%20so%20Hard%20to%20get%20Easy%20Tax%20Filing%20-%20Bankman_0.pdf |access-date=9 January 2021 |quote=At around the same time, the industry took steps to make the program more difficult to find. Both Intuit and H&R Block added code to their Free File websites that shielded them from search engines such as Google.}}

{{Reflist}}

;ReadyReturn

• [https://web.archive.org/web/20140502124659/https://www.ftb.ca.gov/READYRETURN/ ReadyReturn website] (2014-05-02)
• {{Cite web|title=ReadyReturn – Frequently Asked Questions |url=https://www.ftb.ca.gov/readyReturn/readyreturn.971.pdf|url-status=dead|archive-url=https://web.archive.org/web/20100619021955/http://www.ftb.ca.gov/readyReturn/readyreturn.971.pdf|archive-date=2010-06-19|website=California Franchise Tax Board}}
• {{Cite web|title=Q&A with Stanford Law School Professor Joseph Bankman about ReadyReturn and CalFile|url=https://www.ftb.ca.gov/readyReturn/readyreturn.971.pdf|website=California Franchise Tax Board|archive-date=June 19, 2010|archive-url=https://web.archive.org/web/20100619021955/http://www.ftb.ca.gov/readyReturn/readyreturn.971.pdf|url-status=dead}}
• [https://web.archive.org/web/20091217145650/http://www.ftb.ca.gov/readyReturn/ReadyReturnReport2009.pdf Franchise Tax Board Report to the Legislature: ReadyReturn], California Franchise Tax Board, April 23, 2009
• [https://web.archive.org/web/20170128024220/https://www.treasury.gov/IRSOB/meetings/Documents/2014/CA_FTB.pdf Pivoting Away from Paper], California Franchise Tax Board, Internal Revenue Service Oversight Board Public Forum, May 13, 2014
• [https://web.archive.org/web/20060817195411/https://www.ftb.ca.gov/readyreturn/ty04rrfinalreport.pdf Ready Return Pilot: Tax Year 2004 Study Results], California Franchise Tax Board, April 2006
• [http://cdn.ccianet.org/wp-content/uploads/library/Return-Free-WP.pdf Policy Analysis of “Return-Free” Tax System], Boisture, Lauber, and Paz, April 2006, commissioned by the Computer and Communications Industry Association
• [https://www.ntanet.org/wp-content/uploads/proceedings/2010/024-erard-precompleted-income-tax-2010-nta-proceedings.pdf Pre-Completed Income Tax Returns: Evidence from the California ReadyReturn Program], Erard, 2011, commissioned for the Fraser Institute
• {{Cite web|url=https://www.theatlantic.com/business/archive/2016/04/tax-simplication-act/478788/|title=The Fight Over Making Taxes Less Awful|first=Bourree|last=Lam|date=April 18, 2016|website=The Atlantic}}

;CalFile

• [https://www.ftb.ca.gov/file/ways-to-file/online/calfile/index.asp CalFile] "File directly with us – for free."
• {{Cite web|title=Help with CalFile|url=https://www.ftb.ca.gov/file/ways-to-file/online/calfile/help-with-calfile.html|website=California Franchise Tax Board}}
• {{Cite web|url=https://www.businesswire.com/news/home/20080324005943/en/FTBs-Free-e-file-Program-CalFile-Spanish|title=FTB's Free e-file Program, CalFile, Now Available in Spanish|date=March 24, 2008|website=Business Wire}}
• {{Cite web|url=https://www.thebalance.com/direct-file-3-states-offer-online-tax-return-filing-3192919|title=File Your State Taxes for Free in California, Maine, Massachusetts, Pennsylvania, and Other States|website=The Balance}}
• {{Cite web|url=http://pew.org/2gMF3Yq|title=States' Free Online Tax Filing Services Often Overlooked|website=pew.org}}
• {{cite web |last1=Klein |first1=Ezra |author1-link=Ezra Klein |title=What Denmark, Sweden, and Spain could teach America about taxes |url=https://www.vox.com/2015/4/15/8420257/taxes-irs-automatic-turbotax |website=Vox |language=en |date=15 April 2015}}
• {{cite news |last1=Manjoo |first1=Farhad |title=Would You Let the I.R.S. Prepare Your Taxes? |url=https://www.nytimes.com/2015/04/16/technology/personaltech/turbotax-or-irs-as-tax-preparer-intuit-has-a-favorite.html |work=The New York Times |date=15 April 2015}}
• {{cite web |last1=Stevens |first1=Daniel |title=Is Money in Politics to Blame for Complicated Tax Returns? |url=https://maplight.org/story/is-money-in-politics-to-blame-for-complicated-tax-returns/ |date=April 12, 2015}}
• [https://www.revenue.state.mn.us/free-electronic-filing Free Electronic Filing] - Minnesota Revenue
• {{Cite web|url=https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2013/04/11/states-free-online-tax-filing-services-often-overlooked|title=States' Free Online Tax Filing Services Often Overlooked: 23 States offer free online filing as of 11 April 2013|website=pew.org}}
• [https://web.archive.org/web/20150817185809/http://www.taxadmin.org/fta/edi/freefile.html Map: State Web-Based Electronic Filing Methods (pre-filled & FreeFile), 21 January 2015]

;Academic

• {{cite journal |last1=Bankman |first1=Joseph |title=Using Technology to Simplify Individual Tax Filing |journal=National Tax Journal |date=December 2008 |volume=61 |issue=4, Part 2 |pages=773–789 |doi=10.17310/ntj.2008.4S.01 |s2cid=41850659 |url=http://www.ntanet.org/NTJ/61/4/ntj-v61n04p773-89-using-technology-simplify-individual.pdf?v=%CE%B1 |access-date=13 January 2021}}
• {{cite journal |last1=Bankman |first1=Joseph |last2=Nass |first2=Clifford |author3-link=Joel Slemrod|last3=Slemrod |first3=Joel B. |author1-link=Joseph Bankman |title=Using the 'Smart Return' to Reduce Tax Evasion |journal=SSRN Electronic Journal |date=2015 |doi=10.2139/ssrn.2578432 |ssrn=2578432 |s2cid=39787971 |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2578432}}
• {{cite journal |title=Point & Counterpoint: Joseph Bankman (Stanford) and James Edward Maule (Villanova) debate tax-filing simplification proposals: data-retrieval and pro-forma return |journal=ABA Tax Times |date=Summer 2016 |volume=35 |issue=4 |url=https://www.americanbar.org/groups/taxation/publications/abataxtimes_home/16aug/16aug-pcp-bankman-maule-perspectives-on-two-proposals-for-filing-tax-simplification/}}
• {{cite web |title=Free Articles: Bankman, Joseph |url=https://www.taxnotes.com/document-list/contributors-authors/bankman-joseph |website=Tax Notes |publisher=Tax Analysts |access-date=13 January 2021 |language=en }}
• {{cite journal |last1=Litan |first1=Robert E. |last2=Eisenach |first2=Jeffrey A. |last3=Caves |first3=Kevin W. |title=The Benefits and Costs of I-File |journal=SSRN Electronic Journal |date=2008 |doi=10.2139/ssrn.1159844 |s2cid=168131799 |url=https://www.ccianet.org/wp-content/uploads/library/ifilestudy.pdf |access-date=13 January 2021}}
• {{cite news |title=Tax industry group is 'trying to chill my research,' Professor Ventry tells N.Y. Times |url=https://law.ucdavis.edu/news/news.aspx?id=9179 |access-date=13 January 2021 |work=UC Davis School of Law - News |date=November 13, 2018}}
• {{cite news |last1=Ventry |first1=Dennis J. Jr |title=Intuit's end-run |url=https://www.latimes.com/archives/la-xpm-2010-jul-21-la-oe-ventry-intuit-20100721-story.html |work=Los Angeles Times |date=21 July 2010}}
• Ventry, Dennis J., [https://escholarship.org/uc/item/1tw989zv Intuit’s Nine Lies Kill State E-Filing Programs and Keep ‘Free’ File Alive] (August 30, 2010). State Tax Notes, Vol. 555, No. 57, 2010, [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1668912 UC Davis Legal Studies Research Paper No. 227]
• {{cite journal |last1=Ventry |first1=Dennis J. |title=The Failed Free File Program Should Be Reformed, Not Codified |journal=Tax Notes |date=16 July 2018 |volume=160 |issue=3 |pages=317 |url=https://escholarship.org/uc/item/0bs2j0fh |access-date=13 January 2021 |language=en |quote=Reprinted from Tax Notes}}
• {{cite journal |last1=Ventry |first1=Dennis J. |title=The Fix Was In: Mitre's "Independent" Review of Free File |journal=Tax Notes Federal |date=2020-02-10 |page=827 |url=https://escholarship.org/uc/item/3cz1p685 |access-date=13 January 2021}}
• {{cite journal |last1=Ventry |first1=Dennis J. |title=False Claims in Fight Over California's False Claims Act |journal=Tax Notes State |date=4 November 2019 |page=395 |url=https://escholarship.org/uc/item/555733hb |access-date=13 January 2021 |language=en}}
• {{cite web |title=Free Articles: Ventry, Dennis J., Jr. |url=https://www.taxnotes.com/document-list/contributors-authors/ventry-dennis-j-jr-0 |website=Tax Notes |publisher=Tax Analysts |access-date=13 January 2021 |language=en |quote=Dennis J. Ventry Jr. is a professor at the University of California, Davis, School of Law and former Chair of the IRS Advisory Council.}}
• {{cite journal |last1=Walker |first1=David I. |title=Tax Complexity and Technology |journal=SSRN Electronic Journal |date=2020 |doi=10.2139/ssrn.3685329 |ssrn=3685329 |s2cid=226735641 |url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3685329 |quote=Boston Univ. School of Law, Law and Economics Research Paper No. 20-28}}
• {{cite journal |last1=Schwebke |first1=Jason |last2=Brink |first2=William |last3=Hansen |first3=Victoria |last4=Kelliher |first4=Charles |title=Analyzing the role of trustworthiness in tax filing and tax compliance behavior through an automated return |journal=University of North Texas College of Business |date=January 2019 |url=https://cob.unt.edu/sites/default/files/docs/acct/accounting-conference/Analyzing%2520the%2520role%2520of%2520trustworthiness%2520in%2520tax%2520filing%2520and%2520tax%2520compliance%2520behavior.pdf |access-date=13 January 2021}}
• {{cite journal |last1=Duncan |first1=Denvil |last2=Li |first2=Danyang |title=Liar Liar: Experimental Evidence of the Effect of Confirmation-Reports on Dishonesty |journal=Southern Economic Journal |date=2018 |volume=84 |issue=3 |page=742 |doi=10.1002/soej.12244 |url=https://www.researchgate.net/publication/308750634 |access-date=13 January 2021 |quote=Although there has been discussions about the merits of a pre-populated tax form in the US, the State of California is the only US government to have implemented them under their ReadyReturn initiative. ReadyReturn has since been cancelled, but its primary feature – pre-populating tax forms with pre-existing information – is still available with CalFile.}}
• {{cite journal |last1=Valencia |first1=Rebecca |title=Get Ready for the Return! How to Make Filing Tax Returns More Efficient: Applying the State of California Franchise Tax Board's ReadyReturn to the Federal Tax System |journal=Rutgers Computer and Technology Law Journal |date=Spring–Summer 2011 |s2cid=62017885 }}

Category:Taxation in California

Category:2005 introductions