Simplifying Tax for the Average Citizen

1
Simplifying Tax for the Average Citizen

• Joseph Bankman
• Ralph M. Parsons Professor of
• Law and Business, Stanford Law School
• jbankman_at_stanford.edu

2
Compliance and Other Costs Borne by Average
Taxpayers

• Tax system imposes large compliance costs on
  businesses and high-income individuals
• Tax system also imposes compliance costs on
  taxpayers with simple returns
• Whats a W-2? 1099? Should I hire a preparer?
  Which preparer? File myself? Which return? Have
  I saved all the records? Understood the form?
  Copied numbers correctly? Done the math right?
• Economists measure costs as function of time and
  money, but cant measure anxiety, frustration and
  anger

3
Many of These Costs are Unnecessary

• Tens of millions of taxpayers (3 million in
  California) have only wage income even more (4
  million in California) have wage income and less
  than 200 interest income and dont itemize
• The State now checks return against reported wage
  data and checks math
• If the States numbers are different than the
  taxpayers numbers, the State sends the taxpayer
  a deficiency notice
• Why doesnt the State start the process off by
  telling taxpayers the information it has and the
  tax liability it thinks that information
  produces?
• Because State already has info, inexpensive to
  produce

4
Compare a Tax Return to a VISA bill

• VISA doesnt send taxpayers a blank sheet and ask
  customers to write down all their transactions
• Instead, it lists the transactions it has in its
  computer
• Customers insist on this and not just because
  it saves time and effort
• Customers need the list so they can look for
  mistakes or false charges

5
California ReadyReturn Pilot

• A 2004 pro-forma or ReadyReturn sent to 50,000
  taxpayers who had only wage income in 2003.
  ReadyReturn also available on-line
• ReadyReturn shows 2004 data reported to FTB and
  tentative tax liability
• Taxpayers have option of filing return as
  written, correcting return, using data on return
  to get head start on filing a traditional return,
  or giving return to preparer

6
Pilot Program Results

• Despite no advance publicity or mailings, 15-20
  of taxpayers filed ReadyReturn
• Of course, more presumably used Ready Return to
  help prepare their own returns
• 99 of taxpayers surveyed who used the Ready
  Return said theyd use in next year
• (Preliminary results based on e-filing taxpayers
  who completed survey)

7
Comments Tell the Story

• Fantastic Service
• Best thing in the world
• Whoever thought of this deserves a big fat
  raise
• This is a great program and one that everyone
  should be using
• Go Governator
• Wow! Government doing something to make life
  easier for a change
• I hope I can file my federal return the same way
  next year
• See Appendix for comprehensive sample of
  comments

8
Minor Criticisms

• Some comments point out flaws in the beta
  version of the ReadyReturn
• For example, some taxpayers were confused by the
  use of the term PIN
• These useful criticisms/suggestions could easily
  be dealt with in future years
• All the comments received in the first survey are
  reproduced, unedited, at the end of this
  presentation
• Returns and comments are still coming in. Later
  comments are consistent with earlier comments and
  omitted for space reasons

9
Bi-Partisan Support

• Leading Officials from Reagan, Bush Clinton
  Administrations
• Wide array of tax scholars and policymakers

10
Opposition of Libertarians and Others

• Taxpayers will be intimidated into accepting the
• states numbers
• Taxpayers had no trouble saying no and those
  who used the program loved it
• Privacy concerns
• Program requires no new information and enhances
  privacy rights by letting taxpayers know what
  info government already has
• Program will deter real reform
• Connection between this proposal and other
  reforms is unclear
• Taxpayers might not agree as to what constitutes
  real reform what they agree on is that this
  program makes their life a little better

11
What about Tax Preparers?

• This wont affect most preparers
• Some preparers feel theyve got a franchise to
  protect and have opposed program
• One false argument public sector competes with
  private sector
• Government could contract out with private sector
  to send out notices or maintain web site
• Real issue is whether taxpayers would find it
  useful to know the information already reported
  to government and the tentative tax liability
  that stems from that information

12
Making Taxes and the Tax System More Visible

• Filling out a tax return mostly tests reading,
  math and record-keeping skills and leaves many
  taxpayer worried they have made mistakes
• We could increase the visibility of taxes and the
  tax system by adding information to the
  ReadyReturn
• We might include in bold-faced large type the
  total tax paid and the marginal and average tax
  rates
• We could add information on payroll taxes paid,
  etc.

13
Maximizing Taxpayer Choice

• ReadyReturn maximizes taxpayer choices
• Taxpayers can file ReadyReturn, correct and file
  return, use return as starting point to complete
  return old fashioned way, etc.
• Its hard to see why taxpayers wouldnt want the
  information in a ReadyReturn, but if they dont,
  we could allow taxpayers to opt out of receiving
  correspondence

14
Extension to Federal Returns

• Issues
• EITC
• Timely wage data
• Compared to other reforms
• Much easier to implement
• Scalable can begin with a pilot program

15
Sample Ready Return letter
Step 1 Carefully review your return The income
information was provided by ?? ACME COMPANY
Step 2 Make any needed changes If you have
other income . . . or need to make other changes,
you can do this at our Website. Your data is
already there. Well guide you through updating
your return. Step 3 File your return Once
youre ready to file your return, you must sign
it to agree that its correct and complete. Go
to www.ftb.ca.gov/ReadyReturn and e-file. Youll
get confirmation that we received your return and
the ability to schedule an online payment. If
you do not want to participate in this pilot,
complete a new return yourself, use tax
preparation software, or visit a tax preparer.
You can use the enclosed return as a starting
point for completing your new return.
16
Appendix Taxpayer Comments on Pilot

• The following slides contain all the taxpayers
  comments received by late March
• These comments have not been edited in any form
• Comments from later surveys are consistent and
  have been omitted only for space reasons

17
Direct Quotes from the ReadyReturn Pilot

• "Great Pilot Makes my life easier."
• "This is great and easy"
• "Great program and easy to use, although I am
  computer illiterate"
• "Wonderful. Wish the Feds would make it this
  easy"
• "Wonderful service. Im highly satisfied. I was
  disappointed at first not to have tele-file, but
  after receiving my invitation and seeing what was
  prepared and done for me I was very pleased. I
  would love to have this service again."
• "Very satisfied and impressed with this new
  method. Loved e-filing...love the readyreturn
  even more."
• "I wanted to direct deposit my return, but it
  submitted before I had a chance to do so. You
  should put the direct deposit 2nd instead of 3rd.
  I am using a Mac and the view return opened
  system profiler. As a result, even though I had
  looked at it using Adobe Acrobat 5, your site did
  not recognize that. I had to click o"
• "I was not able to type in my middle initial R..
  Other than that I was happy with the program and
  I hope it will be available and free in the
  future. Thanks for keeping up with the times and
  making it an easy program to use."
• "THIS IS A GREAT PROJECT"
• "This is the simplest, most convenient tax filing
  system ever. I really am impressed. Thanks for
  including me in the pilot program"
• "It made my simple tax return a COMPLETE
  no-brainer."
• "Thank you for inviting me to use this pilot
  program. I was dreading having to do them since
  the Telefile was canceled. My taxes are easy
  enough it is just taking the extra time to get
  the taxbooklet and worksheet."
• "Was not clear about what a PIN number was. I
  thought it was something in the letter. Looked
  all over for it. Finally found it in the FAQ."
• "Line by line 540 Instruction manual was hard to
  find...should be very conveniently avail. With
  the ready return for reference, otherwise a very
  good process."
• "There is only one issue I noticed while
  preparing my taxes using your e-file program.
  None of the help items I selected displayed a
  help page, all came up with an Error404, Page not
  available. Other than that, I would like to thank
  you for the work that went into this service and
  hope to be able to use it for years"
• "ReadyReturn was very easy and convenient. Thank
  you for the invitation."
• "Great pilot program it makes folks that have
  easy returns to actually file and not have to
  populate all of the tax withholding information
  kudos
• "I had difficulty in the password, in that it
  required numbers, not letters. Otherwise, quite a
  good program. Thank you."
• "I wish you would continue the Telefile sytem.
  Not everyone has access to internet. I had to go
  to a friend. I like doing my taxes on the phone
  so easy."

18
Direct Quotes from the ReadyReturn Pilot

• "This is the first time for me. I enjoyed the
  experience. However, your figures were not the
  same as my W-2 I received from my employer. I
  corrected the income amount from my w-2 and all
  is well"
• "Fast, easy and free. Great program."
• "Thank you for choosing me for this pilot
  program, I love it. I hope I can file my federal
  tax return the same way next year."
• "This was a great time saver. For someone like me
  who doesnt make a great deal of money, it makes
  the tax time easier. Thanks"
• "In the 5 digit signature section, state that the
  5 digits are of my own choice and not a
  predetermined selected by the State as we are
  used to. I finally saw that it was my choice when
  I viewed my return on Adobe."
• "I was unable to write down the DCN number on the
  final screen because the ReadyReturn Easy as 123
  logo obscured the number. Otherwise very cool
  service."
• "The button for choosing direct deposit was after
  the signing and submitting form. The steps never
  took me back to put my direct deposit info in, so
  I guess the checks coming by mail"
• "For some reason when I tried selecting the
  button while completing my taxes it would never
  take me to the website it needed and default to a
  statement that said cannot find that address I
  found away around this though. Otherwise a very
  well done and very easy to use system, which I
  will use from here on."
• "The screens to change the data were not very
  user-friendly and there were no help options for
  each item. I am a web designer and I had
  difficulty knowing I was to add the information
  from my federal itemized tax return document to
  the fields on the screen to itemize for my state
  return."
• "Survey took longer than the efiling. Great it is
  easy and free. Lets see if the refund comes as
  quickly."
• "This was an incredible experience. I hope that
  this service is available next year."
• "Once I was able to get into the page. This was
  the easiest and the fastest experience I have
  ever had filing my taxes. I also called the 1-800
  number and received excellent help. Thank you all
  so much. One less headache with taxes...Someone
  is finally thinking about us..Thanks again"
• "Could not access website www.ftb.ca.govReadyRetur
  n----I tried everything for over an hour, finally
  I telephoned. Was told not to capital R in ready,
  R in Return. I had already tried lower case."
• "Very convenient"
• "I thought this was a great pilot program. It was
  easy, effecient, seemingly safe and caught a
  mistake I would have made if I had paper-filed. I
  wish that I could do my federal taxes the same
  way"
• "This is an awesome pilot program that is easy to
  use a time-saving option for tax preparation,"
• "I have never considered filing online before but
  would definitely do it again next year. I had to
  make changes to my return, but this was still
  easier than I thought it would be. Good Job with
  the program."

19
Direct Quotes from the ReadyReturn Pilot

• "Thanks for providing a free opportunity to file"
• "Good program-hope to see it in the future."
• "I had a problem at first getting it to Submit
  but after a speedy reply to my problem email, a
  very helpful person steered me in the right
  direction. Very professional. Hats off to FTB and
  ReadyReturn. See you next year. "
• "Thank you for choosing me to particapate."
• "Though I only speak English, I think the e-file
  form should be available in all languages upon
  prior maybe 6 months written request for uncommon
  foreign languages."
• "Again so cool"
• "Thank you for choosing me to participate in your
  pilot program. I would love to be involved
  again."
• "This was great and a lot easier than I thought
  it was going to be Thanks"
• "Your site worked well with my browser, Firefox.
  I appreciate this compatibility. Some tax sites
  only work with the insecure Internet Explorer
  browser."
• "Great new program. Quick and easy...I LOVE IT"
• "Thank you"
• "The instructions need to be clarified, it took
  three passes to successfully submit...Why force a
  print out if you make no changes. I had already
  completed my tax form and agreed with your
  mailing. Your pilot project is headed in the
  correct and proper direction. Good luck..."
• "I would like it if I were able to file earlier
  as I have only have one employer and always file
  the short form. Direct deposit is the most
  important thing to me and I felt confident that I
  was given the proper instruction on the computer
  and the phone. I enjoyed filing my taxes since it
  had already been figured out for me"
• "I would file with e-file every year."
• "Thanks it was much easier and less hassel. Hope
  this way is secure, yes I would use it again"
• "CA State method of e-filing is easier than Fed.
  Still filed using hardcopy and snail mail for
  Federal return because I didnt see a Government
  run e-filing site page."
• "Excellent program. Very convenient and secure,
  will definitely use again."
• "Thank you for inviting me to participate. This
  made doing my taxes easier to understand and
  complete."
• "Thank You California FTB, this was wonderful. I
  hope you continue to offer this in the future.
  Please pass this comment to our Governor This is
  one of the best products offered by the state
  that saves time and money for the average
  Californian and makes tax paying a pleasant
  experience. Thank You "

20
Direct Quotes from the ReadyReturn Pilot

• "ReadyReturn is the best thing in the world. It
  was great, finding out that my state tax return
  had already been filled out, and was ready to
  file. It saved me a lot of time, and it was very
  easy to understand not confusing at all. I
  appreciate that the Franchise Tax Board is
  willing to put the time and resources in"
• "Wow...Government doing something to make our
  lives easier for a change...The Feds should take
  notice"
• "Please make it this easy to file federal taxes"
• "For myself, this new program for filing my taxes
  is good. Although I do have concerns for elderly
  or disabled taxpayers some of whom may not have
  internet access."
• "I thought this was great very simple to
  use...thanks State of California you save me 20
  bucks"
• "I hope this will be available next year"
• "Thanks"
• "Good Job"
• "It was great Please provide the service next
  year."
• "The section that requires a PIN, I was unclear
  if this was a number that I already had or if I
  was supposed to come up with one."
• "Thank you for inviting me to participate in the
  pilot program. I hope it is successful and will
  be repeated next year."
• "At one point, my browser froze and had to close.
  As a result I did not go to the page to donate
  part of my refund. Im not sure if this was the
  websites fault or my browser."
• "I had never used an e-file before today. I was
  impressed on how easy this was to do, and I would
  do it again, because it simplifies everything,
  not to mention that I would get my refund a lot
  faster."
• "Great stuff go governator"
• "Thank you for the invitation. It was fast and
  easy"
• "It was nice not having to pay a fee for filing
  with the state."
• "Thank you for making this available Its quicker,
  easier, and cheaper than ... my previous method."
• "Excellent Great Amazing"
• "Wonderful service."

21
Direct Quotes from the ReadyReturn Pilot

• "Made my life a lot easier."
• "I had trouble opening the online version of my
  return. I think its because I have a Macintosh.
  Please check it out. I use OS10.2.1 and Acrobat
  Reader 6.0.2"
• "The final question asks for a five digit PIN
  number. You should clearly define where to find
  that number."
• "Thank you very much, this was an incentive to
  file my return faster"
• "I would definitely prefer this method to others
  I have used in the past, including telefile.
  Thanks for the invitation."
• "I think the idea behind ReadyReturn is sound and
  should reduce the stress and dread of tax time.
  Having all the information available both on
  paper and on the internet and the convenience of
  taking only 5 minutes to file is a welcomed way
  to quickly and effortlessly complete and file
  your taxes. Thank you for"
• "THANKS FOR ASKING ME TO THE PILOT PROGRAM"
• "This is an excellent choice and if I have this
  option again, I will definitely use it. Great
  idea."
• "This is great"
• "You never anywhere state weather we as a
  taxpayer have to send anything other than what
  you generated online"
• "I feel this is a great program. It is easier to
  understand that other tax sofware. I hope this
  will be available to me again next year."
• "From the letter it is not clear on internet
  access, did not ask to use http I did call and
  had a very good response from your online
  assistance, I have done online support myself and
  found your assistance very good"
• "Im happy this only took approximately 10
  minutes and no more stress"
• "I really missTelefile..."
• "Thank you for such an easy tax return...bravo"
• "ReadyReturn was very fast and very easy. If
  given the opportunity again, I was use this
  method to file my return."
• "Had problems using Adobe Acrobat reader to view
  return. I called the toll free number given and
  was pleased to reach a live person. They were
  helpful. I would use this again because it made
  filing very easy. Thanks"
• "This was a very easy process, and I thought my
  taxes couldnt get any easier I think this would
  benefit people who havent filed before, to guide
  them through the process and show them that its
  nothing to be afraid of."
• "You should have clarified the PIN number. I had
  to call to find out what it was"

22
Direct Quotes from the ReadyReturn Pilot

• "FANTASTIC service Please implement tthis
  program"
• "I hope this service becomes standardized. Quik
  and convenient."
• "I think this is a wonderful service and I hope I
  can file this way again next year. It was very
  easy and saved me some money."
• "Great, keep up the good work."
• "Works for me-thanks"
• "It took a few minutes to actually find the
  ReadyReturn portion of the website. I had
  expected it to be more prominently displayed.
  Instead, I first went to CalFile. Also, I think
  there should be a separate screen for direct
  depositwhich I wantedbut apparently missed the
  opportunity to indicate that."
• "Thank you for making it easier to file my Tax
  Return"
• "Keep up the good work"
• "Need to have a Quick Link to access the Pilot
  Program. It took 3 times to enter the system
  because of manual typing addresses."
• "There is nothing about direct deposit with
  efile. Nothing mentioned about length of time to
  receive paper check."
• "This was the best way to file my state taxes. If
  filing becomes this easy it would eliminate all
  stress associated with filing your taxes. Thank
  you for allowing me to participate in this
  pilot."
• "I would love to be able to use this service
  every year. Also, I wish the Federal Tax Board
  would offer this service"
• "I think this is a great pilot program. It makes
  filing easier. Great job."
• "Thank you for making this available Youre
  great"
• "Make a note in the instructions to edit the tax
  return if one would like to use direct deposit.
  Granted that is very much user error on my own
  part, unfortunately I caught it after submitting.
  Along that thread would be nice if there was
  information for amending after submitting should
  an error be caught then."
• "This was so easy I wish that this program were
  available for my federal return I would
  definitely use this again next year-great system"
• "Keep me on your invitation list"
• "An additional line for the Federal Adj Gross
  Income figure in the worksheet would have made it
  simpler to edit Ca return to match my Federal
  return."
• "The only trouble I had was the pin"

23
Direct Quotes from the ReadyReturn Pilot

• "This has made my life a lot easier. Thank you."
• "Thank you so much for making something that
  always is stressful much easier. I was able to
  understand the procedure and felt that I was in
  control of what was being done with my taxes
  instead of someone preparing it for me. I think
  this is great."
• "THIS IS A GREAT PROGRAM AND ONE THAT EVERYONE
  SHOULD BE USING."
• "I really like this program. I am not really good
  with math and this helped me a lot. However, I
  missed the part about having my return direct
  deposited into my account. "
• "This was great"
• "I think this was a great service to provide. It
  saves time and money."
• "FANTASTIC IDEA, GREAT EASY PROGRAM THANK YOU FOR
  THE OPPOTRUNITY TO PARTICIPATE"
• "I think it is great that the state is finally
  using technology to benefit the residents. Paying
  taxes shouldnt be so complex. I am very happy
  that this program is available and it should save
  the state millions of dollars in resources. Good
  job California"
• "Thank you, this was fast and easy"
• "Tele-File and E-File without having to purchase
  extra software are very good options.They are the
  fastest and best way in my opinion. Paper filing
  is still necessary for those who dont like the
  internet. However I feel that E-file will become
  more popular. Starting it now and developing it
  is a good idea."
• "Thank you for making it easier for people."
• "THERE WAS NOWHERE TO INPUT MY BANK INFO FOR
  DIRECT DEPOSIT."
• "The site was very easy to follow and
  understand."
• "Thanks for making it quicker for me"
• "Great idea, super easy, keep up the good work.
  Save taxpayer rmoney by using this type of
  friendly government websites."
• "It was great. Took away all my worries"
• "This was great for people with one job and
  nothing else. If I had more than one income I
  might not file this way."
• "This new pilot is easy and quick. This is my
  first time, so I really liked it"
• "When I received the letter in the mail and saw
  who it was from, I thought Oh no, audit time. But
  this was so cool For some reason the Federal is
  so much easier to do and file, now you made
  filing my state income tax so much easier. Thank
  you"

24
Direct Quotes from the ReadyReturn Pilot

• "This has been a great experience. Never before
  has it taken 5 minutes for me to file my taxes"
• "This was WONDERFUL, what a great way to file my
  state taxes, I wish the federal was as easy. Its
  a no brainer, I hope I can do it this way for the
  following years. Thanks so much."
• "Incredibly convenient way to file"
• "If federal taxes was this easy"
• "This is an awesome and amazingly easy
  application. Thankyou."
• "It was the best."
• "This was great, I would like to be able to do
  the same with my federal return as it fairly
  simple like the state tax was. Great way to save
  money."
• "Love it what a great time money saver"
• "THIS WAS FABULOUS, IT SAVED ME LOTS OF TIME AND
  HAVING TO COMPUTE. SO EASY I WOULD RECOMMEND THIS
  TOOL TO EVERYONE."
• "This was great hope u do it every year"
• "I like it Its easy since I do not have any other
  deductions. Thanks for doing this."
• "Thanks for including me in the pilot program."
• "I received a letter sent previous e-filers that
  the CSN was no longer needed toE-file. I could
  not get the program to work as described in the
  letter signed by FTB. The phone call to learn
  the letter was in error was a waste of my time
  and the letter was a waste of FTB time and money.
  I ft"
• "This is great service from my government. I love
  the invite and wish the feds would do the same.
  Good work and thanks from this taxpayer."
• "Everything worked great. The taxpayer pin number
  thing seemed a little arbitrary since I already
  provided my soc sec. Why not just ask for the
  date of birth like the Federal govts telefile"
• "This was a very easy way to file and I would
  definitely like to do it the same way next year."
• "Thanks for this option. Im always confused when
  I have to do my taxes and usually need help. It
  was nice and very convenient to have the form
  already filled out with all my information. Im
  definitely not stressed out about doing my taxes
  because it was so easy. I would definitely use
  this service again next year"
• "I would appreciate the teacher tax credit being
  reinstated."
• "I thought the Requirements needed to E-File were
  a little confusing."

25
Direct Quotes from the ReadyReturn Pilot

• "This was great Thanks"
• "I really enjoyed using this program. Thanks for
  choosing me for the pilot program. It was so
  simple"
• "It was Great Fast, easy, and reliable."
• "Thanx guys. This was really quick!"
• "Assigning your own PIN number was rather
  confusing at first as it would appear to me that
  the tax return would have had print outs like the
  access code--not sure I was able to just use a
  radom PIN--it was okay but didn't make sense to
  me."
• "In step 5 line 20 , I would feel more confident
  in the information provided, if the tax table was
  either included in the invitation or displayed
  online while filing. When I reviewed my tax
  return form online, the amounts and lettering
  were superimposed, my confidence in the system
  faltered some, but since the figures did
  calculate to the same amounts I continued."
• "after viewing the return, I was confused about
  how to close down the window showing the return,
  and I just took a chance at closing the window by
  clicking the x button. The return said I should
  use the controls on the bottom of the screen."
• "keep the program going...its great."
• "It took me two days to get the website to comeup
  and thirty minutes this morning. That is why the
  time listed above was so long. I almost gave up
  and mailed the paper return."
• "I was unable to view the return, but was
  required to check the box in order to file my
  return."
• "I am not sure if I clicked the direct deposit
  button... I was only given the option once and
  after signing my return, was not offered it
  again. Also-the PIN choice was not well
  described. secure. I expected you to provide a
  PIN to me. How secure is a signature when the
  user chooses 5 numbers out of the blue How do you
  know its me?"
• "why cant I file my federal tax return here too?"
• "I called the 800 that is on the ready file for
  help, the lady that assisted me was very kind and
  helpful. I wish that I would have written down
  her name to give you but unfortunately I didnt."
• "I THINK THAT THIS IS WONDERFUL AND CONVENIENT.
  THANK YOU."
• "The .pdf veiwing buttons did not work very well
  with Firefoxv.1.0PR. According to the
  instructions in the .pdf, it should have opened
  in its own window because it says to close the
  window once I veviewed my return. However,
  because it opened in the same window and did not
  include an in site back link, I had no choice but
  to use my browsers back button and resending post
  data after the final viewing which then counted
  as thee-file submission. Also,because the system
  uses a button to view the return, I did not even
  have the ability to right-click and force it to
  open in a separate window."
• "Great program dont let this end."

26
Direct Quotes from the ReadyReturn Pilot

• "I really liked the tele-file method, but this is
  nearly as quick and provides a paper trail that
  is comforting.Thanks for allowing me to test
  drive the program. I would like to use it next
  year as well."
• "The Ready Return system made it so quick and
  easy to file my tax return that I felt a marked
  decrease in anxiety over the whole process. I 'd
  love to see this program implemented on a
  national level, too."
• "Don't change a THING. This WORKS!"
• "Thank you"
• "THANK YOU FOR THE INVITATION TO USE READY
  RETURN"
• "very convenient and quick-keep up the good
  work."
• "The ready return made it easier for me to file
  my Cal tax return"
• "Though I am very pleased with Easy Return, I
  chose to answer No on item1.a. because the
  section explaining how to sign the document by
  using the PIN was very confusing to me."
• "Ready Return does not work properly with common
  browsers on the Apple Macintosh this must be
  remiedied. Many Californians use Apple computers.
  2 After filing my return, I was not given any
  link or information to pay the amount I owe. Im
  now left confused how do I pay What do I do Do I
  waste time trying to call and find out What I
  will probably do is just send in a paper 540 form
  and my check, which means that Ready Return saved
  me ZERO time."
• "Under question number 1 Ready Return, kept my
  personal information secure makes no sense as I
  cant tell if Ready Return kept my information
  secure or not."
• "Excellent Program."
• "I've read in the newspaper that some groups
  people object to this service, stating that the
  government shouldnt be determining how much money
  someone gets back. Im getting more money back
  with government doing my taxes than I have before
  with my taxpreparer doing it, so I dont agree
  with that objection. If this program is offered
  in the future please keep my name on the list."
• "very easy hope it is available in the future"
• "logged on to the web and had a hard time getting
  to ready return page, too much clutter, it should
  go directly to the ready return page. After that
  it was easy. Should make note on your final page
  to sign form LAST after entering direct deposit,
  I almost did the reverse."
• "This is an excellent website. I have worked with
  a number of municipalities across the state and
  have seen how bad some of them waste money on
  inefficient use of manpower. Seeing this website
  has given me hope that the state has some sense
  to it.This is a good investment for California. I
  see the potential saving to California in the
  tens of millions of dollars just by the saving of
  postage, paper, and manpower. It is about time
  California looked at ways to improve its bottom
  line."

27
Direct Quotes from the ReadyReturn Pilot

• "Thank you very much for the opportunity to file
  my taxes this way. I loved it."
• "Thank you very much. I loved Ready Return. It
  was easy, simple, and most importantly, FREE
  Would use it again next year, given the
  opportunity. I just wish Federal did it like
  this."
• "I do hope that the federal government catches on
  and some how links CA to their resources so that
  I can be a happy camper with the federal
  government as I am now with my state of
  California....Thanks California"
• "Loved the service"
• "This was easy, convenient, and free You cant do
  much better than that. Good job."
• "I was not given an opportunity to pay online. I
  have to go to another website to pay. I was given
  a dcn without payment options bug in the system.
  I liked it. It matched what I thought by doing it
  myself and seeing what was provided for me."
• "you need to clear up the PIN instructions. Thank
  You very happy took me minutes."
• "This process didnt save me as I had already
  purchased the software.It would be great if the
  information could be provided earlier. That would
  eliminate having to make unnecessary purchases.
  Thank you for the opportunity to participate."
• "Thank you for this invitation, it was very
  helpful."
• "THANK YOU For once, our Government has somehting
  beneficial for everyone."
• "Getting my taxes done stresses me out but this
  made it a lot easier for me. I liked being able
  to do it my self instead of having someone else
  do it for me."
• "I found Tele File very easy. It was not clear
  that Telefile was not available and took time
  looking for it. If I had no computer then
  telefile would be the tool-it should still be
  offered."
• "An option to only correct name and or address
  should be provided up front so that an individual
  does not have to step through the paper return
  you provided. Some of the questions were alittle
  confusing and were not necessary since all had to
  do was change the address."
• "I like the phone one better, but this one is
  okay. The last part when they wanted a 5-digit
  pin was sort of confusing. I didnt know if I had
  to make one up, or if it was in the forms
  somewhere."
• "you should have a close button on the tax form
  itself. It gets confusing and hard to determine
  which button closes the window and which are
  internet disconnect buttons."
• "Thank you for allowing me to participate in this
  pilot program"
• "This was very easy and convenient."
• "Though I was able to finish within minutes the
  2nd time I had some problems over the weekend
  when I first started... meaning the site was not
  available. Not sure if there were some connection
  problems on your site but I was not able to
  Review and therefore could not complete the
  return at that time. Otherwise I really liked
  submitting my return this way, it is really easy
  and very convenient plus there are no extra costs
  involved. Thanks.

28
Direct Quotes from the ReadyReturn Pilot

• "I loved it, it should save both of us time and
  money."
• "If refunds will indeed be issued much faster and
  provided my return was received without any
  problems, I think ITS A GREAT IDEA .P.S.IS THE
  SAME SERVICE AVAILABLE FOR FED TAX RETURNS I
  WONDER"
• "Thank you for your help. Have a great and
  positive day"
• "This made it easy to file. I only needed minor
  changes to my return such as the renters credit.
  I did have problems opening the PDF file to view
  my return. I am using Acrobat Reader7.0 and have
  shut off all my Norton security settings but this
  still did not work."
• "Information should be supplied about qualifying
  for Ready Returns vis-à-vis taxable interest
  income."
• "Thanks for this program. It is very quick and
  accurate I double-checked the numbers--they
  matched."
• "This was awesome. Everything was already
  pre-filled out for me. All I had to do was review
  it, add direct deposit for my refund, and sign
  submitit. I wish there was a similar pilot
  program for filing my Federal taxes as well. I am
  definitely satisfied and look forward to
  participating in this pilot program again next
  year."
• "I would like to file my federal return also,
  using this method."
• "Thank you for making filing my taxes so easy
  -one less stress on my mind"
• "It was fast easy and cheap I will do it again if
  I can."
• "Missed step13, nice to have a reminder of that
  option. Would have used the direct deposit."
• "This ready return worked well but I do prefer
  tele-file. It took me less time."
• "This e-file system should have a checklist of
  what needs to be done after I e-file my taxes. It
  did not tell me where I need to mail my check,
  who to make it payable to, what needed to be on
  the check, and if anything needed to accompany
  the check. I had to call for this information."
• "This is great. 15 min and I was done. Like we
  say in the Marines OOOOOrrrraahh!"
• "The Ready Return option is a wonderful idea and
  I personally hope to see it available for
  everyone."
• "The twenty minutes you allow isnt enough. My
  server went down twice during my preparation. Had
  to start over, better if I didnt have to start
  over and just start from where I was."
• "Fast, easy, wish it was like this all the time"
• "I THINK THIS IS GREAT FOR SINGLE PEOPLE WITH NO
  WRITE- OFFS AND NO OTHER EARNED INCOME. IT
  CERTAINLY SAVED ME TIME AND THE WORRY OF IT BE
  INCORRECT. THANK YOU,"
• "thank you very much"

29
Direct Quotes from the ReadyReturn Pilot

• "I like this service. I liked how it was
  pre-filled out, free, and that I can schedule my
  payment for a future date, i.e. 4/15. There was
  one error on the final page that told me to save
  my DCN on Form 8453, but I only printed Form
  8455. Anyhow, this is great Hope to see it again.
  No w only if the Federal Govt would offer this
  too."
• "Instructions were efficient and easy to
  understand. I was confused for a few moments with
  the Pin number that I had to create to submit my
  return. I tried to enter my access code. Then I
  reread the instructions and figured it out. Other
  than that, all was simple. Thanks."
• "The pilot project looks good"
• "please dont get rid of theW-2 info once a year
  directly from the employer."
• "Website did not explain PIN for signature. The
  website should have explained that the PIN was a
  number of your choosing just prior to asking for
  this information."
• "I liked the e-file offer including me in your
  Pilot program. Thanks"
• "This was very neat. I was a bit worried at first
  when I got his in the mail, but when I realized
  that this letter to be involved in the Pilot
  program was from the state I got excited. I
  usually use commercial software to do my taxes,
  but this was a lot easier. All I had to do was
  double check the info and put in my account
  information for direct deposit. I loved it.
  Thanks for allowing me to participate in this
  program and I hope this continues for next years
  taxes."
• "I would like to use it again next year."
• "I wish Federal Taxes could have been prepared
  the same way...ReadyReturn rocks"
• "THIS PROGRAM WAS VERY EASY AND STRAIGHT FORWARD"
• "This was fast, easy and convenient. I also like
  the idea of not wasting paper. Great Job"
• "The letter in spanish and in english is a good
  idea. I do not need it in spanish but for those
  individuals out there I can see it to be
  important and thoughtful."
• "The tax return would NOT display correctly, an
  error came up both with IE and Mozilla, luckily I
  was mailed a printed version in the mail, numbers
  are over writing each other on the online form,
  not clear at all."
• "This survey took longer for me to fill out than
  Ready Return took to let me file. Great job
  especially for us poor single people. Thanks"
• "Please include me on your mailing list next
  year. How can I get Federal Invitation to-file
• "I liked this way of filing very much, very
  convenient. I would not have bought the state
  software if I had been aware of it before
  recieving the letter. I hope the same method is
  available next year. I did have a problem viewing
  the pdf file containing my return. It insisted on
  opening in Photoshop which did not understand it.
  I would suggest checking that the content-type
  and content-disposition headers are set
  correctly."

30
Direct Quotes from the ReadyReturn Pilot

• "You mailed too many items regarding Efile. You
  do not say that it is with no charge I hope this
  is free because I did not account for any fee for
  using this."
• "wow! Great service. This took me 30 minutes and
  I was done. Thanks. "
• "I was totally confused with those whole system
  and had a hard time figuring this system
  out...Hopefully I did this correctly. Thanks, "
• "This was a very easy way to file. Thank you for
  the invitation. I hope I can do the same next
  year. These are the government services that make
  my life easier - Thanks again..."
• "pin number should state that you can use any 5
  digit number."
• "This was AWESOME And, so easy and it was FREE
  Thank you for inviting me to the pilot program
  Ill definitely look for this next year."
• "My only concern at this moment is how good is
  the security online."
• "This was a delightful surprise to receive Thank
  you. Anything to make life a wee-bit easier."
• "My browser would close the window whenever I
  would close the pdf of the return. I had to log
  back in about 3 times. Other than that, this was
  convenient and simple."
• "This is much better I hope you continue with
  this process."
• "KEEP GOING, YOU ARE GETTING THERE....JUST KEEP
  IT FREE!"
• "It seems odd to not have to mail my W-2, but I
  like the convenience. Thank you for the
  invitation."
• "I had difficulty getting to the website using
  the URL that was provided. Also found the
  instructions abit aborious. Instructions said to
  use back or return button at bottom of page.
  After reviewing my return in PDF format, there
  should have been instructions to close tha
  window. Need clear instructions on selecting the
  PIN without having to ask question."
• "Grrreat Job"
• "I wish I had received this in the mail earlier
  I did my return on paper in January I just hadnt
  filed it."
• "Great service and very use to use It would be
  good to have a save button when submitting direct
  deposit information, the back button makes you
  hesitate and wonder if the information was saved.
  Until you print the return, the einstructions are
  not clear as to the fact that this information
  will be added to the return.
• "The interface should be improved to allow saving
  your progress rather than requiring you to
  restart the process if you cant finish in one
  sitting. Otherwise, very useful and straight
  forward.
• "This was fairly simple. I thought I was going to
  use an interactive tax form. Since I already
  prepared my taxes, I could have adjusted the
  numbers directly to the 540 form. Mine was a
  simple return. I might be alittle apprehensive
  using this system if my return was more complex
  unless I was adjusting the numbers directly on
  the form."

31
Direct Quotes from the ReadyReturn Pilot

• "Love this service - too bad I moved out of state
  before it took off and became a regular thing. I
  loved Tele File too."
• "I had a very positive experience with Ready
  Return. I hope this eventually becomes a
  government service. Its fast, convenient, and
  takes a lot of anxiety away that is associated
  with tax."
• "The original wage amount was incorrect. Had to
  change online."
• "This process couldnt be easier except clarify
  the PIN signature. I spent a minute looking for
  the PIN on my invite. I had to click on the help
  icon to learn that I make up my own PIN. It
  should be stated right on the page."
• "When I went in to review my tax form and there
  was nothing at the bottom that tells you what to
  do next. I was nt real sure if I should just
  close out or not. When I did, I saw that it then
  said to continue etc, but for a moment I was not
  really sure."
• "ReadyReturn was great I hope you do it again
  next year. It was hassel free. I loved it. Thank
  you for including me in your pilot run."
• "Is there any way for 1099-INT information to
  automatically be sent and be included like the
  w-2 information was It would make this type of
  filing even easier but this may not be feasable.
  Thank you for the opportunity to file my State
  tax form via this method."
• "My fiancee was upset that she couldnt file
  using this method, please expand the program"
• "I was in such a hurry to complete it I didnt
  supply the direct deposit info. I guess a check
  will be in the mail it was so nice to have it
  all filled out in advance look forward to e-file
  again next year."
• "Thank you for the opportunity."
• "THANK YOU."
• "The program was very easy to use and extremely
  convenient, although my preference is to use an
  independent software program outside the
  government or file via mail. I think the reason I
  feel this way is mainly due t o the fact that
  this is a new program. However, it is a great
  option for filing, very simple and I would use it
  again."
• "When the it came time to e-file and the program
  asked me for my access code it did not take it
  because it asked for a five digit code and my
  access code is four--so I added a zero in front
  of it."
• "This is a great service Would suggest to BOLD
  that signature should be a NUMBER pin. I was
  trying to use characters maybe others caught it,
  but that took me a little bit to figure out.
  Thank you."
• "I was a participant and the taxes were already
  prepared for me. Because of the fact that all I
  had was an address change, it took quite along
  time to do this and e-file because I had to re-do
  my taxes all over again. The software should
  automatically let you just change your address
  and re-print and file...
• "I would have liked to receive my invitation
  letter sooner."
• "GREAT idea this was super easy and fast, now
  push the federal guys to let you file like this
  as well."

32
Direct Quotes from the ReadyReturn Pilot

• "Make e-file permanent Tax solution Wish the
  Federal Government does the same"
• "I really enjoyed filing by Telefile and miss
  that option. Using ReadyReturn means you must
  have a computer and not everyone does. I also
  have not been receiving my Tax Record and
  Instructions booklet for the past 3 years. I miss
  getting that also. You get updated information
  that you wouldnt get elsewhere."
• "the directions were easy but I did have alittle
  trouble on some of it. I printed it once and
  thought that would take care of it but you have
  to print it twice so you can see your routing
  number included. Directions should say print
  twice."
• "I do not use a bank. Your instructions do not
  tell me how and when I will receive my refund in
  that case."
• "The site did not tell where my signature pin
  was, or how to get it. Other then that, the site
  was over all a great way to file."
• "Bravo this was simple and quick. Better then any
  indepent tax preparation site Ive used in the
  past."
• "Great experiece It was easier and faster than
  telefile."
• "Thank you for inviting me to participate in your
  pilot program. I hope that it is a success so
  that I can use it again next year."
• "Great. Easy, fast way to file income. Plus its
  free."
• "This was excellent as long as hackers can not
  get on to the website. Since I do not itemize,
  this was the easiest way for me to submit my tax
  form."
• "Now that tele file is no longer available, I
  prefer filing on-line. Thanks for the
  opportunity."
• "Nice to receive access code through mail. Nice
  to have option to receive access online. Was not
  aware of program until receiving ReadyReturn in
  the mail. ReadyReturn is a good option for filing
  tax. Thanks"
• "It was very easy to file my return. I wish I
  could do the same thing for next year."
• "Printing out there turn was problematic and
  caused me to be timed out. For easier printing,
  keep the form black and white."
• "Awesome.. I loved the Taxes already been made
  for me You should keep the pilot program alive
  Sooooooo easy, quick, efficient, and the best
  part is that its FREE It took me less then 2
  minutes to just log into the website, sign my
  return, and e-file Nice job, the Feds should do
  the same."
• "Question 10 did not have enough options."
• "The numbers were on top of each other on my
  return in the computer. I do have Adobe 7.0 so
  believe that there is a bug somewhere in your
  system."
• "Please make sure that people realize they need
  to update the information on their return if they
  want to have their refund directly deposited to
  their account. Making sure they viewed their
  return does not really point that out. I was
  double checking the amounts on my return form. I
  forgot to revise that I wanted my refund directly
  deposited to my account. Now I have to wait for
  my check in the mail. But still, thank you for
  this opportunity."

33
Direct Quotes from the ReadyReturn Pilot

• This was allot easier than tele-file. I love the
  fact that all my info is filled out for me on the
  return and all I have to do is accept it and I am
  done. Good job. Thank you."
• "thank you for the opportunity."
• "thank you"
• "This was the easiest time I have ever had filing
  a return. Thank you."
• "Thanks for inviting me to use the new
  system--should be well accepted by all who
  participates."
• "Im glad I was a part of this- it made things so
  easy."
• "ReadyReturn is the best thing to happen to state
  taxes since deductions. - Filing this year was
  beyond easy and fast. Thank you for such a great
  program and I hope it will be available again
  next year. Thanks "
• "thank you thank you sob,sob thank you"
• "Great Service"
• "PIN number was confusing. It was not clear that
  the number was something for the user to make up,
  rather than a specific number the user was
  already supposed to know."
• "My printer printed out the return but not the
  inserted figure fields on the return such as AGI
  amount, amount I owe etc...so I used the return
  you sent as my record along with the DCN number."
• "thank you this even easier than TeleFile"
• "Entering the 5 digit pin at the end was a little
  confusing. It should state to come up with your
  own 5 digit pin that way others wont scramble to
  locate it somewhere in the paperwork. Thats what
  I did and just came to the conclusion that I had
  to make one up. That was fine but, it should
  state to make up your own 5 digit pin and
  remember it somewhere."
• "The some of the print on my return was
  overlapping. Im hopeful this will not affect my
  return"
• "cool"
• "My browser didnt have the exact wording listed
  in the instructions, so I had to choose to
  believe that I have sufficient security for this
  system in order to use it. Hope I didnt make a
  big mistake Im not computer savvy..."
• "Thanks for making it really easy and painless
  this year"
• "more of the data should already be populated.
  i.e. ssn,employers id , ect. It would save more
  time and make it more pleasurable."
• "This is a wonderful program that should be made
  available always. The only confusing point was
  the 5-digit PIN to sign the return. It should be
  made more clear that the PIN is just a random
  number and not a number that was sent to us.
  Also, the paper that was mailed to us with our
  access code should have spaces marked for writing
  down our DCN and PIN as a reminder to keep the
  information."

34
Direct Quotes from the ReadyReturn Pilot

• Since I already had a copy mailed to me with the
  invitation, I didnt print a copy but was directed
  back to print a copy before I could continue."
• "Great job"
• "This is a fabulous service"
• "this system is the best thing to come alone
  since sliced bread i lover it"
• "It is not clear how to come about finding your
  PIN Do you make up one or is it somewhere on the
  form and you just cant find it."
• "Was a little hard to find where I needed to go
  at first but, once I did it was easy.Thanks "
• "This is a great program please continue it"
• "Ok - FIRST This 500-character limited space
  should be acknowledged Now I have to rewrite this
  all It was unclear to me what the PIN was. I had
  to go back to the FAQs page, then look it up.
  Info. NEXT to the red asterisks would have been
  helpful - or a "What is this" underlined next to
  important entries to take us immediately to
  another window with that particular info.
  ReadyReturn is a 540 formI use 540 EZ - I was
  going to change the entries - luckliy I saw the
  difference."
• "it is about time we eliminate paper and
  streamline the government. Next lets fix workmans
  compensation."
• "To have the form already prepared by you was a
  big help. Thank you."
• "awsome"
• "It was a nice surprise to receive the
  invitation. Id definitely use that again. Thank
  you"
• "If you are receiving a refund button for
  electronic transfer into your bank account should
  be before electronic signature."
• "Choosing a 5 digit pin seemed pointless and
  confusing since there was little explanation
  about how it would be used later."
• "It will be nice to also receive an invitation to
  do my federal taxes."
• "ReadyReturn was GREAT It was incredibly
  convenient and was faster than other programs.
  Thank you for including me in your pilot program"
• "pin number was a little confusing"
• "I would like to do this again for the future tax
  returns."
• "Thank you This was great"

35
Direct Quotes from the ReadyReturn Pilot

• "The question mark symbols linked to "page not
  found" messages that should be fixed Also, it
  was really hard to tell if my browser was secure
  enough. More detailed information there is
  definitely needed, more browsers should be
  included, and the links to download "super
  secure" software should lead to the actual
  product, not to the general website of the
  browser I had no idea where to go from where you
  guys sent me. These two issues were a big
  problem, but otherwise the system worked really
  well and I appreciated being able to file this
  way"
• "this was great, thanks for selecting me"
• "I had the preprinted form, so no need to print
  even though asked to do so and it was confusing
  to figure out how to close the page to get back
  to Sign and Submit, please add a Close or Back
  button, hitting the X at upper right is scary.
  E-file is fine now that telefile is not
  available."
• "Please continue with this pilot program. Its
  very helpful in saving me time and energy...both
  are valuable to me."
• "Excellent idea. Solid-looking implementation. Im
  glad to see compatibility with non-internet
  explorer web browsers."
• "Great idea, big time saver. Takes the guess work
  out. I would be concerned that people would miss
  out on deductions using this method without
  exploring other options."
• "Thank you letting me fill on e-mail i will love
  to do this way every year it was helpful and less
  stresssful"
• "Great System"
• "Thank you for this easy to use method of
  preparing and filing my State tax return"
• "THE INFO BUTTONS DID NOT WORK. TRIED TO FIND OUT
  WHAT A PIN WAS WHERE DO YOU GET IT, DO YOU JUST
  MAKE ONE UP NO EXPLANATION."
• "The only thing remotely confusing was the PIN
  number but when I clicked on the help question
  mark button I got the info I needed to submit the
  form."
• "Why was telefile discarded"
• "This was really great When I received the notice
  of the pilot in the mail I was excited becuase I
  was dreading filing my State taxes since I had
  not received a notice to file them by Telefile.
  This was painless and would love for this process
  to continue"
• "Contrary to your mailing about a month ago, I
  still needed to call in for CSNs for my wife and
  I. Also, it would help if you gave examples
  concerning creating the PINs for the electronic
  signatures. Also, the request for explanation
  boxes did NOT work. This is not good Otherwise,
  the experience was a good one without major
  problems. Thank you."
• "I think that this is a wonderful service. The
  only thing that would make it better is if people
  are able to make changes to their tax return and
  be able to submit them online, without sending it
  through the mail. It would be good for people who
  have other incomes. Thank you CA."

36
Direct Quotes from the ReadyReturn Pilot

• "Thanks for the invitation This method of
  e-filing was absolutely painless and so fast It
  took me less than ten minutes - but I put 10
  minutes in the response box because I was
  interrupted by a phone call. Thanks and tell my
  dear "Governator" thanks too"
• "It would be nice to feed Federal Return data
  from commercial software into the California
  software."
• "what was my PIN, at the end it wanted my PIN a 5
  digit number, I only have a 4 digit access code,
  so I made up a number and it acepted it. Is this
  what you are suposed to do Do I need to remember
  my PIN"
• "I LIKED THE PROCESS, ONLY CONFUSING PART WAS DID
  I PRINT WHILE STILL IN THE ADOBE WINDOW. GREAT
  JOB"
• "Good job. Thanks for your efforts."
• "I LIKED THE PROCESS, ONLY CONFUSING PART WAS DID
  I PRINT WHILE STILL IN THE ADOBE WINDOW. GREAT
  JOB"
• "This was so easy I wish the federal returns were
  this simple...."
• "Provide easy access to online information
  regarding tax benefits, credits, incentives, and
  other money-saving options when using ReadyReturn
  to file taxes."
• "I wish I could of had the invention for the
  pilot sooner than spending money on an outside
  source"
• "I would love to use this service again now that
  telefile is gone."
• "Now you dont have to sweat in out over your
  paperwork Thanks tons"
• "I had a change to make and wouldve preferred
  entering the change in the pre-prepared form and
  theh have it compute the rest or prompt for extra
  into pertaining to that one change. Instead I had
  to wade through all the pages for the whole
  return."
• "This is the greatest ever in my experience.The
  federal filing should be done the same way.Thank
  you. Best Regards"
• "ReadyReturn was fast and easy--thanks"
• "help button didnt work on direct deposit, so I
  had not forgo that option. wasnt sure what my
  routing number was. otherwise very convienent.
  thanks."
• "The enter pin number and submit button were
  problems. I had to keep entering the number and
  had viewed the form 3-4 times before I was able
  to complete the submit portion."
• "When it came to the PIN instructions, it was not
  clear that I was to make up my own number. I
  tried the help icon and it wasnt working."
• "While this was a fairly handy function, I
  believe it would be even easier if the person
  needing changes could work with a directly
  interactive tax form. For example All I needed
  to do was add interest that I received for the
  year. Fo