Originally posted by: alkemyst
Originally posted by: BigEdMuustaffa
My previous question was rhetorical. I'd much rather have a tax accountant argue my case then just bringing in a computer printout if I were auditied. The two easiest ways to raise a red flag to the IRS is to do your taxes yourself, or have your brother in law do it for you...
I don't think who does your taxes has any bearing on how the IRS looks at things. I think everyone would rather an accountant worry about their taxes, a lawnman do their lawns, have a shopper, a cook, etc. It's just not realistic for most, and most are actually as a whole having a greater chance of being audited.
I agree that doing your own either with or without software is asking for an audit (assuming you do a schedule "A" or "C" or both - i.e.anything but standard).
The third-to-the-last time I got audited, the costs were Accountant $1800, IRS $800.
The second-to-the-last time; I used software and it was dead even - no fees or penalties.
The last time, the IRS pulled into the lead in spite of the records and the software - $6,000 including penalties and interest. Had an accountant been involved from the beginning, I probably would have paid the less in taxes, and avoided the penalties and interest.
The very first time was rather interesting, as I got back $13,000 ? only after I switched accountants.