The Lie of "Do-It-Yourself" Tax Software

Do it yourself! It's so easy!therefore had to show the income and expenses
The advertisements make it all sound so simple.for it. Accidentally, he entered the wrong amount
Just click here, type some information there, clickfor the income, a very wrong amount, way too
again here, type a little more there. Presto!low for the amount of time the property was
You’re finished, and it’s accurate!rented. Did the software recognize it? No. He filed
Yea, right.the return, and this year paid me to amend it
Go to Amazon and read the reviews for differentafter I discovered the error.
software packages. If you analyze them, youThe second one entered the wrong amount on
may notice that there are two types of users:an important depreciation form, causing the
one that loves it, another that complains about it.software to calculate the depreciation incorrectly.
The complainers can be further split into threeDid the software recognize it? No. She filed the
groups: those who are upset over paying extrareturn, and this year paid me to amend it after I
to e-file, those who have tech-support ordiscovered the error.
installation issues, and those who are upsetThese two clients share a characteristic of some
because the program calculated their taxesof the complainers on Amazon: they are not good
incorrectly.candidates for do-it-yourself tax preparation. Their
I want to discuss those in the last group. Yousituations are just too complex, and they would
might be one of them, and not even know it.have benefited greatly by having a trained set of
At the risk of stating something painfully obvious,human eyes examine the return.
I'd like to point out that tax software is notIf your tax situation is even slightly complex and
human. This means that it doesn’t have ayou use software, you run a risk of paying an
set of trained, human eyes to recognize whenincorrect amount for taxes or filing incorrect
things just don’t look right. You know whatreturns than if you found a competent tax
I'm talking about. It's the human ability to make apreparer.
judgement call, the human ability to extrapolateAmerica is full of do-it-yourself ideas, and mostly
information, the human ability to sense, not on ait's a great thing, but not if your returns are
mental level, but deeper than than, whenincorrect; not if you pay something other than
something is wrong. This ability would havewhat you actually owe.
served that last group mentioned above.Regarding reviews on sites such as Amazon: I
From my own practice, I had two clients thisgenerally disregard one line reviews that basically
season with errors on their 2004 returns. Onesay, "It's great," or, "I hate it," especially when
used software, and the other used an onlinewritten by people who have no other reviews to
service.their credit. Just looks fishy to me.
The first one owned rental property, and