50 pounds in 50 weeks: Tax saga continued...

For those interested, here TurboTax's response to my request that they pick:

I received your letter regarding our Accurate Calculations Guarantee, and have reviewed your request for reimbursement for interest and/or penalties paid to the IRS for 2005.I have determined that TurboTax Software did perform the calculation correctly and am unable to approve your claim. The basis for coming to this decision is as follows:When you choose to enter a W-2 in the program,you come first to a screen titled “Tell Us About Your Wage Income.” If you are filing jointly with a spouse, that screen contains three buttons from which you must choose. One has the taxpayer’s name on it, another has the spouse’s name, and the third says to skip the W-2 entry. You cannot progress beyond this pointto enter a W-2 without making a selection here. If you make the correct selection, that is, if you correctly identify the person to whom that W-2 belongs, then the social security tax from that W-2 will accrue to that person. If you accidentally make the wrong selection, and choose the same owner for W-2s that belong to different spouses, then all the social security tax withheld accrues to only one spouse and that person appears to have too much social security withheld. The apparently excess amount appears on your 1040 as “Excess social security withheld” and increases your refund or decreases the tax due.If this error occurs, you are given the opportunity to make corrections. After entering the W-2s, a screen appears saying that one individual may have paid too much social security, with the relevant information appearing below for you to review and correct.If you use the CD version of the product, whether an actual CD or downloaded CD, you can verify this error by opening your return and choosing Continue as though you were going to work on your data again. Then, along the top of the TurboTax screen, there is a narrow grey menu bar that starts with the words “File…Edit…View…Forms…. Select the word Forms, then Show My Return from the dropdown menu. You will see a list of all the forms used to create your return. Double click on the Form W-2 and W-2G Summary to open it. If you see if too much income showing in the column for one spouse, that is the cause of your excess social security.If you used the online version, you can duplicate the error by starting a fake return in the current online version. When you enter W-2s, make the erroneous spouse selection as described above and see that all social security is then attributed to only one spouse.Keeping our customers loyal is important to us. If you have further questions, or feel that I have reached this conclusion in error, please feel free to contact me by sending an e-mail to TaxAnalysts@intuit.com and typing “Attn: xxx” in the subject line. Please also include your Reference # xxxx in your message.

And here is my response to them:

Anita,

Here are my comments to your conclusion:

-> Since I used the online version, I can not go back and
verify what was entered back in 2005. Your online version only allows
users to go back and check specific entries for the latest year. You note
that I should use the current version to prove that TurboTax asks the
appropriate question, but how do I know that this latest version is exactly the
same as the version used back in February 2006?
-> Even if I take TurboTax’s word on this, can you please explain any situation where I would claim a W-2 return with a different social security number as my own income? This is poor programming at best that only can lead to the error you claim I made. While I can’t go back and prove it, I do not remember TurboTax ever raising a flag indicating a potential error on my part. It is my contention, that while I may have ultimately checked the incorrect box, that poor programming led me down this path. Isn’t the purpose of your software to make it easy for the consumer to fill out a correct tax return? Giving the consumer the choice of selecting a W-2 with another person’s SS# as his / her own income serves no other purpose than to cause confusion and errors in my estimation.

For a few years prior to using your software, I was using HR Tax-cut Online. I actually switched to your software due to its better interface and my impression that it captured more information in order to get a better refund. I was actually excited when TurboTax actually reported a much higher refund than what I received using Tax-Cut. Now, your higher refund resulted in me not only having to pay back taxes (which is a hardship that I didn’t budget for this year), I have to pay an additional $300+ in interest and penalties.

I have already voiced my displeasure publicly on this issue through word of mouth to friends and family and through a personal weblog that generates x page views monthly. I was hoping to follow up this story by telling friends and family (and web traffic) how TurboTax did the right thing in the end. As things stand right now, I can only say that TurboTax did not do the right thing by the consumer and I would
advise anyone against using your services in the future with my story as the cautionary tale.

Bottom Line: I disagree with your review of my request. TurboTax software should not even ask whether W-2 forms with two different Social Security #s should be counted under 1 person. To hold me responsible for accidentally checking the incorrect box for a question that shouldn’t be asked in the first place is unfair. I hope you will reconsider reimbursing me for the interest and penalty charges I have already paid to the IRS.