Originally posted by: RideFree
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).
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This is BS...schedule C in and of itself can get the IRS's attention but they are not checked who is doing the taxes for an audit flag. If anything an accountant can be more of an advantage in fudging the bottom line.
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.
Your audit history and the fact you had a $13000 refund shows either mismanagement of monies or your already in a high profile demark.
I have never heard of anyone getting hit three times for audits despite some very clever situations...these are about a dozen people owning small/medium businesses....about 3/4 have accountants.