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This page contains a single entry from the blog posted on March 5, 2006 9:03 PM. The previous post in this blog was They've got it all wrong. The next post in this blog is CENSORED!. Many more can be found on the main index page or by looking through the archives.

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Sunday, March 5, 2006

Play it safe

It's tax time, and if you're thinking of using a web-based tax return preparation program, here's an expert with some one-word advice:

Don't.
Q: In 2002, you advised against using Web-based tax-preparation software, writing, "Your tax data are highly sensitive and confidential, and I think the Web is just too susceptible to hackers and crooks to make it a fitting repository for such information." Do you continue to have these concerns?

A: Yes. If anything, the incidence of identity theft and other security problems on the Web have grown worse since 2002. I am not criticizing the tax-preparation companies, which I assume have good security. And I am not advising people against normal e-commerce, or the use of credit cards online. But I would be personally loath to put the broad and deep financial information required for a tax filing on a server controlled by someone else and connected to the Internet. I would instead download or buy traditional tax-preparation software, which keeps your data on your own hard disk.

Thanks to TaxProf Blog for the link.

Comments (3)

And related, folks should be very wary before updating to the new version of google desktop.

in order to be independent of your individual machine the new version of desktop "indexes" your files by *uploading* text versions of everything toa google server. That's right, everything, including your tax returns, quicken files, etc.

you can choose to not have files indexed this way, but who has the ability to know where things are?

oh, and by the way, i filed two weeks ago!

As far as privacy concerns and tax filing goes, Thomas Friedman in his newest book, The World is Flat, states the most startling news: tax filing offices and accountants are outsourcing returns to India.

"outsourcing returns to India".
Law firms, too, send tasks to India to be done there. Let's just hope that stuff isn't being shipped through our Dubai-managed ports!




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