SO I get this letter
#1
Thread Starter
SO I get this letter
It seems the State of Massachusetts has a difference of opinion in our tax filing 3 years ago.
Going back in it would appear that turbotax made a SUBSTANTIAL error ( like 25%) importing the state data from the federal form.
Haven't quite figured out how they did that yet but ouch.
Now we'll see how good they are at coughing up those penalties.
Going back in it would appear that turbotax made a SUBSTANTIAL error ( like 25%) importing the state data from the federal form.
Haven't quite figured out how they did that yet but ouch.
Now we'll see how good they are at coughing up those penalties.
#2
You can never trust the software. You should always develop an expectation of what your taxes, both federal and state, should be and compare that expectation to the outcome. You don't need to calculate the return by hand, but you should come up with a ballpark figure. If it is off by 25% you'd know it.
I do that with everyone of my clients. I use professional tax software, and even there I've found bugs and errors over the years, especially with state returns. Turbo is a very good program, but even it has problems sometimes.
Intuit (the makers of TurboTax) claim that they will stand behind the software, but don't be too surprised if they try to blame you. Keep us posted, I'm curious to hear how you resolve this.
Unfortunately, you signed the return and ultimately you are responsible for the correct filing. If push comes to shove, and Intuit refuses to pay, you will have to come up with the penalty.
If all else fails, you might want to write to the state asking for an exception to the penalty based on the fact that it was given rise to by the underpayment caused by an error in TurboTax which you were unaware of. Make the case that if Turbo had calculated properly you would have paid the correct amount of taxes. Sometimes this kind of appeal works.
I do that with everyone of my clients. I use professional tax software, and even there I've found bugs and errors over the years, especially with state returns. Turbo is a very good program, but even it has problems sometimes.
Intuit (the makers of TurboTax) claim that they will stand behind the software, but don't be too surprised if they try to blame you. Keep us posted, I'm curious to hear how you resolve this.
Unfortunately, you signed the return and ultimately you are responsible for the correct filing. If push comes to shove, and Intuit refuses to pay, you will have to come up with the penalty.
If all else fails, you might want to write to the state asking for an exception to the penalty based on the fact that it was given rise to by the underpayment caused by an error in TurboTax which you were unaware of. Make the case that if Turbo had calculated properly you would have paid the correct amount of taxes. Sometimes this kind of appeal works.
#3
Originally Posted by ralper,Oct 31 2008, 06:59 AM
You can never trust the software. You should always develop an expectation of what your taxes, both federal and state, should be and compare that expectation to the outcome. You don't need to calculate the return by hand, but you should come up with a ballpark figure. If it is off by 25% you'd know it.
I do that with everyone of my clients. I use professional tax software, and even there I've found bugs and errors over the years, especially with state returns. Turbo is a very good program, but even it has problems sometimes.
Intuit (the makers of TurboTax) claim that they will stand behind the software, but don't be too surprised if they try to blame you. Keep us posted, I'm curious to hear how you resolve this.
Unfortunately, you signed the return and ultimately you are responsible for the correct filing. If push comes to shove, and Intuit refuses to pay, you will have to come up with the penalty.
If all else fails, you might want to write to the state asking for an exception to the penalty based on the fact that it was given rise to by the underpayment caused by an error in TurboTax which you were unaware of. Make the case that if Turbo had calculated properly you would have paid the correct amount of taxes. Sometimes this kind of appeal works.
I do that with everyone of my clients. I use professional tax software, and even there I've found bugs and errors over the years, especially with state returns. Turbo is a very good program, but even it has problems sometimes.
Intuit (the makers of TurboTax) claim that they will stand behind the software, but don't be too surprised if they try to blame you. Keep us posted, I'm curious to hear how you resolve this.
Unfortunately, you signed the return and ultimately you are responsible for the correct filing. If push comes to shove, and Intuit refuses to pay, you will have to come up with the penalty.
If all else fails, you might want to write to the state asking for an exception to the penalty based on the fact that it was given rise to by the underpayment caused by an error in TurboTax which you were unaware of. Make the case that if Turbo had calculated properly you would have paid the correct amount of taxes. Sometimes this kind of appeal works.
#4
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I used Turbo for two couple years. Wound up with a mjor error inthe fed taxes and had to pay more after filing. I went back to the guy I had been using for many years, even though it costs more and I have to drive back to the Worcester area. It took me almost as long to use Turbo as it did to drive to the accountant and come back home.
#6
Thread Starter
funny thing is we were using preparer up until 05.
the +1 decided it was costing too much....
rob
My income has been extremely erratic over the last few years both good and bad, so the expectation game got kinda hard to play.
the +1 decided it was costing too much....
rob
My income has been extremely erratic over the last few years both good and bad, so the expectation game got kinda hard to play.
#7
Originally Posted by Legal Bill,Oct 31 2008, 07:51 AM
Professional tax preparers FTW!
Us CPAs take tax matters very seriously.
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#9
Originally Posted by Filthy Beast,Nov 1 2008, 06:07 PM
I too use a CPA, he's worth every penny i pay him.