Several high-tech industry associations are criticizing a Clinton administration plan they say could put online tax preparation services out of business and could make the government an unfair competitor in the e-commerce market.
The Computer and Communications Industry Association, American Electronics Association and the Software and Information Industry Association wrote Clinton administration leaders this week to say a directive included in its fiscal 2001 funding request requiring the IRS to offer no-cost tax filing and preparation services online would be unfair to non-government competitors.
"The desire by the government to attempt to either regulate or compete with the electronic commerce industry in offering Internet tax preparation services appears, on its face, to conflict with the President's e-commerce policy directive in every respect," said a letter signed by the groups' leaders.
The associations say that for the dozens of companies that charge for online tax preparation, the administration policy would force them to adjust their pricing policies to compete with the IRS.