• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Who’s at fault when using tax prep software?

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Simply using tax preparation software won’t protect you from IRS penalties. A taxpayer who relied on the TurboTax program made several mistakes on her return. Because her tax deficiency exceeded $5,000, the IRS hit her with an accuracy penalty of more than $8,700. The taxpayer argued that she isn’t liable for the penalty because she used the software. Not so fast, said the Tax Court: The errors were her own fault. (Bartlett, TC Memo 2012-254)

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/33614/whos-at-fault-when-using-tax-prep-software "

{ 1 comment… read it below or add one }

Bob Meighan December 24, 2012 at 8:07 am

Nothing new here. Although TurboTax catches most mistakes, no software can detect all mistakes that involve transposition errors, missing info and others where rules and logic are unable to flag such mistakes.

Bob Meighan
VP, TurboTax

Reply

Leave a Comment