Don in Upstate NY

Several years ago, when ATX had the massive e-file problems, I switched to TaxAct in mid-season. TaxAct has the look and feel (and perhaps some of the same authors) as the old Parsons TaxEdge. It is forms oriented, like ATX, but switching between forms is not as convenient. The client letters are fixed, and worthless. Support for some states is marginal. That being said, it is a solid product that will do the job very well for a majority of your 1040 returns. E-file pricing is high for small quantities, but their unadvertised $500 special (federal plus all states plus unlimited e-file) is now less than ATX 1040 Office. Conversion programs to or from TaxAct are non-existant. TaxAct is my choice unless I go for 1040 Office. (My gut level problem with ATX is quality control. The sheer number of updates and the fact that I cannot trust that the paper version of the return matches the e-file.)

New York went a little further than that. Last year they eliminated the state version of the 8453, instead requiring that all e-files be signed by PIN. With no state 8453 (actually it was an IT-201E), there is no way to send any paper to supplement an e-filed return. So they also eliminated the requirement to send the 'other-state' return if you are claiming an 'other-state' credit. You keep it in your files so that it will be available 'upon request'.

Just completed my first Illinois e-file for this season (I live in NY). Passed the error check with no problem. Created the e-files (Federal and Illinois piggy-back) no problem. Went to print out the signature forms to send to the client for signing -- there was no Illinois form! I had forgotten to explicitly include the IL-8453, and the program not only didn't automatically include it - it didn't catch the error. That seems like a pretty basic error to miss.

To further complicate things, since 2002 brokers are no longer required to issue a 1099-B for most same day non-qualified option exercises. So you may have a W2 with a code V and NOT have a matching 1099-B (See the instructions for Form 1099-B and IRB 2002-50)

You can get about 12 hours per year free from Wiseguides http://www.paychex.com/wiseguides/wiseguides.aspx

They already did that. The 1040 program used to have unlimited free e-file - now is has NONE! 1040 Office had unlimited - now it has 100 returns.

I guess they really didn't blow it big time. Most of the posts on the old board had a hundred readers at best. If ATX really did have 70,000 customers, that's a trivial number to loose.

New York says ... http://www.tax.state.ny.us/press/2007/exte...n_noreaster.htm

The spirit of Parsons (and IIRC some of the people) is alive and well in TaxAct. The federal 1040 program isn't $80, it's $99, but they generally run a special from now thru June at $79. States are $13 each, or $52 for all. There is no shipping charge if you download the programs. E-filing is expensive, starting at $11 and decreasing to $500 for unlimited, at which point they will give you the software for free. The program is certainly not as comprehensive as ATX, the client letter is worthless, and e-filing is somewhat cumbersome, but the program is rock solid. They will have two updates per year instead of hundreds. Not having to worry about program issues is worth quite a bit. [Disclaimer - I used TaxAct for 2-1/2 years, starting in mid-season of the year when ATX had all the e-filing problems. I went back to ATX for 2006 and would probably have renewed for 2007.]

I don't know about MAX, but for the 1040 and 1040 Office packages the website shows quite a difference. Although the price is the same, the features are not. The 1040 package (for $390) used to be federal plus three states with unlimited free e-file. It is now federal plus three states with NO free e-file. E-file is extra, at $5 per return. 1040 Office (same as 1040 but with all states) which used to have unlimited free e-file now only has 100 free e-files.