More on Tax Prep Programs

Hi June,

I am a Validation Consultant new to the indie world and want to know if it's better to hire a tax pro to prep/file my taxes or is it just as good to do it with something like Turbo Tax?

Is the IRS suspicious of indies who do their own taxes, as opposed to having a certified pro prepare them? The Turbo tax software (Business version for consultants/contractors)so far is straightforward and thorough enough it seems for me to do on my own.

Thanks for all your great advice!

Richard
Alameda, CA


Hello Richard,

You sent this in a while ago so you may already have filed your return using a program rather than a pro.

In my post Tax Prep Software is Not a Substitute for Knowledge I say that Turbo Tax, like any other tool , is just that. It's a tool. No tool works if you don't have the knowledge. Photoshop doesn't give someone the talent and skill of an artist. Family Lawyer doesn't give someone the education of an attorney.

Just as there is more than one way to design a business card or write a contract there is also more than one way to prepare a tax return for an independent professional. What you put into the program is what you get on your return. If you are savvy enough about indie tax regs you will end up with a satisfactory tax return. Keep in mind that the program will not give you advice. That you'll need to get elsewhere.

I recommend an indie savvy pro over a tax preparation program.

The IRS isn't "suspicious." It looks for cheaters -- randomly and with a vision. Don't cheat the IRS. Don't cheat yourself. As you may have read on my site or in my book, if you keep records using my Most Simple System you never need fear an audit.

Best,
June