By Allan J Rolnick, CPA, CTC
It’s the thick of tax season 2019. And I don't like to crow about other's mistakes, but this needs to be said. It may be self-serving, but it’s true.
In our line of work, much of what we get to do is to *fix* or alleviate those mistakes, at least when it comes to their tax implications. This year (of all years) carries so many changes that users who fall prey to screaming offers from "cheap" options are more exposed than ever to wallet-sucking mistakes, or even an audit.
You may have heard me say it before, but it's true: We tax accountants sometimes joke to one another about how good these online software programs (TaxSlayer, Block Online, TurboTax, etc.) are for our business. Firstly, they are not as "easy to use" as claimed, and secondly ... they cost you an arm and a leg. I know that there are some cute commercials out there, but allow me to explain:
Using those programs can end up leaving hundreds, or even thousands of your dollars in the coffers of Uncle Sam or the state... even if you follow all of their instructions to a tee. I see it all the time -- frustrated clients bringing in their prior year's tax return, astonished at all the "hidden money" my staff and I are able to find for them.
Even worse: With all of the changes from the TCJA, choosing the wrong method, or forms, in filing can place you directly in the crosshairs for an audit.
Even if you don't owe a ton of back taxes, you still don't want your record to show some IRS agent that there has been a discrepancy of some kind in the past, so that red flags begin to fly, and then more bureaucrats start looking through all of your past tax filings and current income holdings ... basically taking your social security number, and poking around in your private life.
They can do a lot of things you won't want them to do. However, if you keep a clean slate (no IRS correspondence with you, related to filing your taxes incorrectly), the opportunities for them to mess with your personal stuff will be limited.
Yes, it can be seductive to "go it alone" ... to trust a piece of software to point out possible deductions. To trust your work to poorly-trained preparers in a big box office. To protect against your chances of audits through online chat-room support or hourly employees.
But it can be a big trap. Please allow us to help you, and do it well, this year of all years!
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