[mod.legal] Software developer's liability

Schauble@MIT-MULTICS.ARPA (Paul Schauble) (06/08/86)

These two items are from the June 3, 1986 issue of PC WEEK.

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IRS I: The Internal Revenue Service has thrown a chill over the PC
software business. It recently ruled that creators of computer programs
that help taxpayers prepare their tax returns may be subject to
penalties if the program gives bad advice. The ruling will put the
software developers on the same footing as flesh-and-blood tax advisors:
at risk.

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IRS II: TCS Software of Houston is already in trouble with the IRS. The
company was contacted by the IRS because its tax-preparation software
program, Client Tax Series-1040, was listed as the tax preparer on the
1985 tax return of one Richard P. Jamerson.

The IRS was up in arms because Mr. Jamerson had used a fictitous Social
Security number, hadn't included a check with the tax return, hadn't
signed the return or included a W-2 form.

Fortunately for TCS, Mr. Jamerson owes no taxes since he doesn't exist.
He is the totally fictitious example that goes out with the TCS package
to show users how the software package works. Apparantly, one of the
sample returns was inadvertently mailed to the IRS.

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          Paul
          Schauble at MIT-Multics.arpa