To avoid audits...should I go to a tax preparer or do them with one of the Tax Software Programs?
2007-01-31 01:22:38 · 5 answers · asked by Matthew V 2 in Business & Finance ➔ Taxes ➔ United States
Audits are selected in two ways, random and selected.
Using a preparer or software will not help with the random audit. Although you can clear those up usually via telephone. The more detailed audits are a pain, but unless you purposefully cheated on your taxes there is not too much to be afarid from them either.
If you feel comfortable preparing your own, then do it. You know how much you made put it in the software. If however you have a more complicated tax situation a preparer might be the way to go.
2007-01-31 01:32:37 · answer #1 · answered by Jerry 3 · 0⤊ 0⤋
I'd rather pay a tax preparer, preferrably an experienced accountant to do it because they keep up with new tax laws and know what to legally deduct and what taxes we owe to the tax office. Also, if they mess up on doing the taxes, they are partially, legally responsible.
Obeying all the tax laws should help you avoid being audited. People usually get audited when they make unusual sums of money, when they claim extreme amounts for a tax write off, when they break tax laws, when they owe the government a lot of money. People get audited when the tax office suspects that they may have broken some tax laws.
If you have documentation to back your tax claims and follow all appropriate tax laws, then you should not be worrying about being audited. If you are crooked, then of course, you have to watch out, you coould get caught someday and soon, with a tax audit.
2007-01-31 09:31:59 · answer #2 · answered by Muga Wa Kabbz 5 · 0⤊ 0⤋
Neither choice will help you to avoid an audit. A tax preparer may be able to help you if you do get audited - a tax software program may not. H&R block software comes with audit coverage.
2007-01-31 09:30:34 · answer #3 · answered by Gypsy Girl 7 · 0⤊ 0⤋
Your audit risk is pretty much the same either way.
There's an exception to that, though. If you're unlucky enough to select a preparer who has a reputation for abusive or dishonest practices your chances of being audited will go from less than 1% to nearly a certainty. Choose your preparer carefully!
2007-01-31 09:34:47 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
does not matter as long as info is correct with good back up.
2007-01-31 09:33:01 · answer #5 · answered by vegas_iwish 5 · 0⤊ 0⤋