In September 2009, Intuit launched a new web based tax software called Intuit ProLine Tax Online Edition (beta) for those individuals and tax preparer’s that need a low-cost, comprehensive and Web based 1040 tax program. This software is designed for low volume users whose client base does not justify a more expensive PC or networked tax software. Like many other web-based software programs, and in particular like QuickBooks Online, this program allows the tax preparers to work from home or anywhere as long as they have web access. Intuit has been in the tax preparation business for many years and has its TurboTax ,Pro Series ,and Lacerte matured brands. Intuit clearly understands its customers’ needs and has had foresight to know that many of the tax software applications are heading towards “cloud computing” and this tax software, is another example of a Web enabled program.

How this Tax Software Works- the program was developed with the concept of simplicity, and Intuit accomplishes this goal by establishing 3 basic workspaces for the taxpreparer. The work spaces are “input”,” review” and “file”. The “input” workspace allows the preparer to enter tax information i.e.W-2, 1099, Schedule A and B,etc ..It is very easy to locate any tax form. When you enter the data into the form on the screen, you’re able to make several data entries by using a list & total feature in the software. The second workspace, is the “review” section which gives the preparer a diagnostics summary and a suggested list of tax ideas. The third workspace, is “file”, which gives the tax preparer the opportunity to either electronically file the return or to print out the tax return for manual transmission to the IRS.

In the past, tax preparers have purchased TurboTax software and pirated the tax software to prepare hundreds of tax returns by using TurboTax. In order to capture and capitalize from this market, Intuit designed a low cost tax software for a preparer that wants to prepare a tax return in the dining room of a client or their own dining room or from any location with web access. The value proposition is that this software is low priced and simple to use. Although the Intuit website currently offers the beta software for 2008 at no cost, I’ve been unofficially informed that Intuit will sell the software on a pay-per-use basis of $16 per tax return. This price is not currently shown in the Intuit website.This tax software becomes an affordable alternative for the tax preparers whose practice cannot afford to purchase the Pro Series or Lacerte brands.

Some of the features of the software include the following: (a) 1040 only- single user (b) Pay per return (c) E – file or paper file for two states. It is expected that by the end of the 4th quarter 2009 that filing will be available for most of the other states. (d) Data conversion (e) Status tracking with the IRS (f) Notes and listing features and totaling capabilities embedded in the various forms and schedules(g) Diagnostics and suggestions and (h) Support from Intuit

Like any other new software, the concerns at this point relate to the fact that the software is still in beta. Notwithstanding the hundreds of users that have beta tested the software, there are invariably issues arising from any new software release and, only with the passage of time can the software achieve its expectations. Also, like any other web enabled software the connection and performance is dependent on the web connection, and quite frankly may result in sluggish performance. Also despite the Web-enabled software, there are taxpayer’s homes that may not have web access which would prevent the tax preparer from entering the tax information “on the fly”. Not a major issue, since the preparer can prepare the tax return later, or back in his or her the office or home.

In conclusion, Intuit deserves credit for introducing a web-based tax software, to service new users as well as making it easy for those individuals that have used pirated versions of TurboTax to now legally use a low-cost and affordable tax software.

Sandor Lenner,CPA has provided accounting services for companies for 35 years. He is a Certified QuickBooks ProAdvisor and provides QuickBooks support and small business accounting services. As an Intuit Authorized Affiliate, he can offer you discounted QuickBooks and Intuit software. He works as a part-time for Susan Missal Lenner, P.A.