Tax Preparation Software VS Tax Proffesionals
Revealing the Truth Behind Tax Software Versus Tax Consultants
Free and low-cost tax software is everywhere. Whether you are online or offline, using Windows or a Mac, sitting at your desktop computer, or reviewing documents on your mobile phone, you can now file your taxes without ever speaking to another human being. Is the convenience worth the overlooked disadvantages of software-based tax preparation? This guide will give you insight into the truth behind tax software.
- 1. Tax software is quick to submit but slow to change. Tax professionals regularly receive updates and clarifications from federal, state, and local taxing authorities. These updates can come at a frantic pace, leaving tax software out-of-date with the most current money-saving deductions and credits. While tax professionals can quickly determine which updates are pertinent, tax software relies on a time-consuming process of committee reviews, approvals, coding, installation, and dissemination.
- 2. Tax software is only as useful as the programming that goes into it. The Internal Revenue Service and the Tax Court do not care whether a computer or a human made your errors; they hold you responsible for whatever information goes on your tax return. Very few tax software companies are so confident in their software that they will stand behind you during an audit. Tax professionals, on the other hand, routinely see this obligation as part of the service they provide.
- 3. A tax professional is a trusted advisor, while tax software is a discounted processor. Due to their extensive education and experience, human tax professionals can not only address your current tax situation but also make suggestions about ways to pay less tax in the future. Most tax professionals work with a network of accountants and financial planners, so they can address a person’s overall circumstances and needs.
Unlike tax software that you only see once a year, a tax professional can become an ongoing part of your business and personal financial life. When taking in the whole picture, most taxpayers agree that the few pennies saved by tax software cannot compare to the extensive advice, strategy development, and partnership of a human tax professional.