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Northridge Tax Expert Explains How Tax Software Can Lead To IRS Problems

DIY Tax Software Not As Great As It Seems


Northridge, CA - In recent years, a $1 Billion class action lawsuit was filed in Philadelphia, alleging deceptive standards and gross misstatement of fees of the federal “FreeFile” program. Tax filing software isn’t always what it seems, and the DIY route can be a risky one to take. Tax expert Enzo Paredes explains this from a tax preparer’s perspective.
“On the surface, these DIY tax softwares may seem cheap. But remarkably, they tend to be good for our business. The reason is that folks come to us complaining that the software is confusing, or at least more challenging than advertised. Not to mention, if something isn’t filed right, getting audited can cost you big,” Paredes stated.
When using tax software, selecting an incorrect form or filing method is a quick way to invite an IRS audit. As soon as there has been a discrepancy on record for a taxpayer, it could invite IRS agents to come investigate past filings and current income holdings.
“Filing taxes on your own using DIY methods can seem like a good idea at first. But consider your options. There are other ways. When filing your taxes, you need a professional who can get you best deductions, and to protect you from discrepancies. It’s a lot of faith to invest in softwares that already don’t have the best track record,” Paredes said.

Enzo Paredes, owner of New Era Tax & Accounting, offers tax services to individuals and small businesses. He enjoys helping individuals and families save money on taxes. Give him a call (818) 435-2321, email or visit his website


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