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The following article was published in our article directory on February 8, 2012.
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Article Category: Finances
Author Name: chickie maxwell
Aside from hiring a professional for tax preparation, another trend that has emerged in this field is using software. Computer programs that prepare taxes can be found online, where vendor sites promote their software and make it available for users to download it in their own computers. Depending on the complexity of a person's taxes, having a tax software prepare one's taxes may be the cheaper way to go, as these programs swear by their accuracy and user-friendliness. A majority of these programs have tutorials wherein first-time users are guided on every step of the preparation process, thus, making it stress- and hassle-free for the user. Moreover, some small businessmen also see these software as investments, as purchasing them may make other people let the software owner do their taxes as well.
However, as much as tax preparation software have displayed amazing results and conveniences, many still believe that people are wrong in believing that they can replace people. In a lot of cases involving taxes, people are still irreplaceable. For example, we take one popular computer program for preparing taxes. A majority of people use this software for the reason of economy - they can incur savings on professional fees. Moreover, the interface of the software is easy to navigate and use as a while, Taxpayers are not only educated on possible items that will be audited and deducted, but they are also asked of details to make the return accurate, just like what professionals do. Moreover, depreciation of the taxpayer's assets, which can be quite thorny to calculate, can be done easily and without complications by the software.
But then, as with any computer program, the rule of GIGO (garbage in, garbage out) still applies. It means that if the user inputs wrong information, the computer program will not be expected to come up with correct calculations. The program is reliant on the things being fed into it by the user, so unless there is something inherently wrong with what was typed in, like a bunch of letters, or fractions, or two decimal points, then the program will just continue with its calculations, while the user unknowingly incites expense and trouble. Moreover, with forms used for federal, state and local purposes different from each other , no tax preparation software has been known to completely handle and recognize the difference of all of them unless manually inputted.
But still, should a taxpayer opt to go manual with the process, some things still have to be made sure of. Preparers of tax returns, only since 2011, are now required by law to have a PTIN, or Preparer Tax Identification Number. In the tax return, the taxpayer has to make sure that the preparer does not only sign the form, but actually includes his or her PTIN with his or her signature. Moreover, the preparer must also furnish a copy of the tax return to the taxpayer. After all, even if a tax professional was hired to do the return, the accuracy of everything present on the return is still the responsibility of the taxpayer.
Keywords: tax preparation
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