USA Turbo Tax

[Megan harassed taxpayer]

When you file your taxes using Turbo Tax and there are no red flags raised as to your return and how you prepared it, when you are audited is it targeted or random and also why isn't Turbo Tax held liable for any mistakes? I have been asked to deliver many detailed receipts from 2013 and 2014 in less than a week by the auditors which I couldn't do as they were in electronic form on my bank statements and they were archived by the bank. As a result, the IRS denied all of my business expenses. Who bears the burden if the software or an accountant, this happened last year, files an error ridden return. Is there not a case for malpractice if the accountant didn't do their job- the same as an incompetent doctor?

 

[AGH the CPA]

Turbo Tax is a software company not a tax preparer as such. GIGO - in other words, it can only process what you give it. (garbage in, garbage out)

If your return had been prepared by a CPA, then you might have some recourse.

All that said, what I find difficult is that the IRS only gave you a week to present receipts? I would push back on that for sure!

 

[Houston Tax Attorney]

TurboTax does provide some sort of audit defense. I think they charge extra for it when you prepare the return using their software.

It might be hard to show malpractice if you put in the information that was incorrect or weren't able to substantiate entries that you made into the software.

I should also say that you have appeal rights with the IRS. It sounds like you should talk to a tax attorney to see if you can get the tax assessment reversed or lowered. They can also work on the penalties if there are any.