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#1 Ad - TAX-SOFTWARE:

The tax-software ads no longer says that anyone, even a caveman no, wait, that is a different commercial - even a "math impaired" or an "unorganized" individual can prepare his or her own income tax return by simply using their software package. Instead it says that if you buy their software you do not need a professional tax preparer.

Like the previous ad, this is pure bull!

No tax preparation software is a substitute for knowledge of the tax code. And no tax preparation software is a substitute for the services of a trained tax professional.

As with any software program the rule is "garbage in - garbage out". If you don't know how to enter the information, or what information to enter, you will not get the best, or even the correct, answer.

When the IRS comes after you for preparing an erroneous tax return you can't blame it on the software.

The US Tax Court has twice rejected the "Turbo-Tax Defense" when a taxpayer attempted to blame tax preparation software for a negligent tax return.

In the most recent case, the defendent blamed errors on his income tax return on software that he used to prepare his 1040. The taxpayer understated his taxable income by more than $50,000 on his 2002 return. The court said the blame belonged to the taxpayer's negligence, which included failure to keep adequate books and records or substantiate line items properly.

According to the court's decision, Such a program is only an aid for preparation of a return and depends on careful entry of accurate information, which petitioner manifestly failed to do. Petitioner admits that he has the education to prepare and review his income tax return. ... Accordingly, petitioner's use of software in preparing his return does not constitute reasonable cause for the errors in his return.'

As a professional tax preparer I attend several tax preparation workshops, seminars, conferences and conventions during the year. I am constantly hearing instructors and participants alike discuss problems with their tax preparation software, the answer often being that one has to override the system and "force" the correct entry.

FYI, in 35 years of preparing tax returns I have never used tax software to prepare a 1040. I prepare 400+ tax returns a year all by hand. When I am asked what tax software I use I simply point to my head, indicating my brain.

IRS statistics indicate that taxpayers using do-it-yourself tax software spend an average of between 6 and 10+ hours longer preparing their tax

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