1. Do I know the tax laws?
I have 44 years of experience and knowledge in interpreting tax laws. I have spent over 50 hours this past year learning the new 2024 tax laws and changes. Computer programs will not teach you tax law. How much time do you plan on spending learning the laws?
2. What happens if I get audited?
Since I take the time to know your particular tax situation, I can give you specific advice about any inquiries from the IRS (or Massachusetts DOR). What happens if you receive a notice changing the refund on your return? How will you know whether the change is correct or not? (They aren't always right, you know). I have 44 years of experience dealing with IRS and DOR audits and I am available all year long to counsel you and to respond to IRS & DOR inquiries. As an enrolled agent, I can appear on your behalf before the IRS and the DOR for tax examinations and audits. As my client, you will never have to talk to them yourself.
3. Can I be sure I entered all my income correctly?
Not all income you may receive is taxable. Some could be taxable for federal purposes but not for state. Do you know the differences? Many times, this is not clear on the tax forms you have received. The IRS and Mass DOR are more than happy taking your money if you pay more tax than you should. I have spent 44 years looking at and interpreting tax forms.
4. Can I be sure I took all my deductions?
Many off-the-shelf computer programs try to lead you through a process of finding all your deductions. But computer programs do not know your individual situation and do not ask questions like a real live person. Futher, all computer programs are defaulted to the most conservative default mode. You can miss out on a deduction and end up paying too much tax. Or, even worse, you could take a deduction to which you are not entitled.
5. Is the MA state return different from Federal?
Not all Federal changes are adopted by Massachusetts. In fact, Massachusetts did NOT adopt many of the 2018, 2019, 2020, 2021, 2022, 2023 and 2024 changes to the Federal tax return. Some of these differences are very subtle. Do you know what they are? How much time are you willing to invest in finding out?
6. Can I rely on IRS phone advice?
Think you can call the IRS for help and get an answer you can rely on? Good luck with that. The IRS does not have enough employees to provide even the most basic of services. In 2024, IRS short staffed employees were only able to answer 4% of all calls made on individual tax returns.. That's right, 4%! Over 10 million callers were hung up on before they even reached anyone at the IRS. If the wait time was more than an hour, you could not not even "hold" and you were disconnected. An absolute abomination! The agency refers to these hang-ups as "courtesy disconnects". I don't know about you, but being hung up on is definitely not something I would put in the realm of courteous. And, a detailed survey done a few years ago indicated that 47% of all calls that managed to reach a live person at the IRS resulted in INACCURATE information. I guess being hung up on is better than getting a wrong answer.
7. Are computer programs always correct?
No tax software replaces tax knowledge. If you expect it to, you are not being realistic. Trusting your tax program without tax knowledge may be a big mistake. Computer software programs can't look at all your forms and know if (or where) the income belongs on your tax return. The software cannot verify that the input you entered is correct. "Garbage in, garbage out" is an old saying in the computer field. If you input incorrect numbers, you'll get a wrong answer and it is very easy to make a mistake inputing figures. Also, keep in mind that it can take up to 3 years for the IRS to "find" your mistake charging you interest and penalties for all 3 years.
8. How much is MY time really worth?
Isn't this what it it really all comes down to? How much money are you really saving by preparing your own returns when you consider how much of your time you are investing in learning the tax laws, learning the tax software and completing all of the tax forms. Then add in the potential lost money from failing to properly report your income or deductions; and you can see why so many people prefer to put their taxes in the hands of a professional. Last year, over 70 million taxpayers used a professional to prepare their tax returns.
