Geithner Gets Back at Intuit, TurboTax

Includes: INTU, MSFT, ORCL
by: Dennis Byron

U.S. Secretary of the Treasury and Internal Revenue Service (IRS) uberlord Timothy Geithner almost didn’t get appointed to the position in 2009 because of problems on past tax returns, problems he blamed not on greed but on Intuit (NASDAQ:INTU) TurboTax.

It must be true that TurboTax ate Geithner’s tax returns because he is getting even as of January 4, 2010. Reuters reports that IRS Commissioner Doug Shulman says the tax agency,

“will set up a task force to look at potential standards for the industry,”

including tax preparers as well as software companies. Software from Intuit, which owns TurboTax, is widely used by consumers directly as well as by the tax preparers. Microsoft (NASDAQ:MSFT) enterprise and consumer software, particularly software from the former Great Plains Software, and Oracle (NASDAQ:ORCL) products are also used in enterprise tax preparation. The Great Plains heritage software is popular with certified public accountants.

But there'll likely be a lot of water over the dam--or summer camps inadvertently claimed as day care providers--before the IRS task force reports back.

And Reuters also quotes Shulman saying,

"There is quite a bit of commercial pressure for software to work, (but) we didn't find major problems with the accuracy."

He didn’t add, “but the boss did.”