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Does tax software prepare your returns?

By
Industry Observer with Thomas G Rex CPA AZ CPA Certificate #1217

I believe that if you go through the software’s interview process then the software is preparing your return.

However remember that the software is preparing your return based on what you told it. Therefore it’s important to review returns before you send them out just as you would if some tax professional was preparing your returns.

From what I’ve seen from IRS audits the software’s artificial intelligence is not the same as the intelligence of a thinking human being. For example it keeps on asking you questions and you keep on entering the same amounts at different places until the IRS finds them for you. That’s why it’s important to look over the tax return before you send it out or e-file it.

The Tax Court still looks at errors in self prepared returns as (GIGO) garbage in, garbage out. I believe however that as artificial intelligence evolves, in time, software developers will have to take the moral and ethical responsibilities for what they’re doing. You’re seeing this already with self driving cars and drones and robotics.

Even if eventually tax software developers will be penalized as preparers nevertheless you as a taxpayer still remain responsible for any taxes and penalties and interest.

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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Tom, I rely on my CPA to give me guidance when it comes to my tax returns.   Great info, and welcome to ActiveRain.

Dec 12, 2018 03:17 PM
The Woodland Team of Texas
The Woodland Companies - Austin, TX
Land Specialists

Welcome to ActiveRain, I hope that your participation here helps your business to grow.
Btw, I followed your blog, and would be honored if you followed mine.
Thank You!

Dec 12, 2018 11:11 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.WarrenCountyOhioRealEstate.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Tom, I tried using tax software ONCE.  I realized very quickly that it wasn't truly reflecting my life and the complications of running a business. We hired a CPA to handle it that year and forward, and he and his team more than pay for their service with the savings, and not to mention removing the headache for me of trying to keep up with the latest in tax law.  Bill

Dec 14, 2018 12:14 PM
Tom Rex
Thomas G Rex CPA - Tucson, AZ
Tax Problem Resolution (IRS, States, US Tax Court)

It's great that your posts are reflecting that you use a tax professional (CPAs) to prepare your tax returns. Have you spoken to them yet about the new tax law changes coming into play for 2018, and what you can do proactively about this? (I don't suggest that you post answers to this.)

 

I prepare a few tax returns during tax season, but mostly I focus on resolving tax problems and preparing past due tax returns, which can be up to six years for delinquent filers.

 

It's not that difficult to prepare your own returns if you review them before you file, but sadly, many folks don't.

Dec 14, 2018 12:45 PM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Tom Rex, CPA, USTCP welcome to ActiveRain, and congratulations on successfully posting your first blog on this site.

Dec 14, 2018 04:39 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
All the best of success to you.
Bob

Jan 19, 2019 05:33 PM
Tom Rex
Thomas G Rex CPA - Tucson, AZ
Tax Problem Resolution (IRS, States, US Tax Court)

Thank You, Bob!

Jan 21, 2019 08:40 AM