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Online tax preparation companies respond to Heartbleed bug

April 11, 2014

As of the end of March, more than 90 percent of taxpayers who had submitted their 2013 federal returns — around 82 million filers — did so electronically.

Heartbleed SSL bugIn the wake of the Heartbleed Internet security concern, however, the millions of us who will be finishing up our 1040s in the next few days are a tad concerned about joining the e-file ranks.

In case you've been diligently working on your taxes and missed the news, the Heartbleed bug affected the encryption tool OpenSSL that is used by around two-thirds of all websites to secure their customers personal information.

Yep, apparently that little lock icon in the bottom corner of our screen and the "s" tacked onto http in the URL was a big fat lie. And it's one that's been going on for two or so years. Our information might already have been compromised, but if it hasn't, we don't want to do anything to help that happen.

We've been told to change our passwords. Sure. We can do that.

But when it comes to taxes and all the personal and financial information that's required to file a return, some of us are a bit trepidatious about putting our data online right now.

Unfortunately, we don't have much time to decide whether to e-file again or switch to paper.

Assurances from IRS, software companies: The Internal Revenue Service says its systems are OK.

IRS Heartbleed Bug statement 040914

Of course, U.S. taxpayers don't file directly with the IRS. As the tax agency notes in its Heartbleed statement, e-filing of taxes is through its software partners.

So what has been Heartbeat's effect on these companies? Well aware that they could lose a whole lot of business in the next few days, they are working to reassure the public that things are OK.

TaxACT, TaxSlayer, FileYourTaxes.com and 1040.com say that the security flaw is not an issue for their systems.

H&R Block says it has not found any risk to client data from Heartbleed. But to be sure, it is "reviewing our systems and taking the appropriate steps to ensure our customers are protected."

Intuit, maker of the popular TurboTax, says it has examined its systems and has secured the tax prep software to protect against Heartbleed.

Feeling better? The IRS and its tax software partners hope so. The agency is seeing more folks e-file this year than ever before. We'll see if Heartbleed slows down that trend.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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