Every time the tax season is near, people try to hurry up to complete their tax returns. Many procrastinate up to the last minute. What worries many people is a tax audit because of the potentially significant costs that can be incurred. The best protection offered to accountants and their clients is the audit insurance that will eliminate the worries in case the tax returns are audited.
A business or individual can make mistakes on the information provided on the tax returns. Errors can be expensive because they result into penalties. A number of software tools are available to ensure the accuracy of the information provided on the returns. An example is Turbo Tax that has been consistently reviewed as the best software for taxpayers.
The interface of Turbo Tax is user friendly and intuitive. The software is designed like an interview that asks questions about the job, dependents and rental payments. While the individual answers the questions, data is being inputted on the returns. It is very unlikely to miss anything particularly in the itemized deductions. Turbo Tax live offers on-screen live advice from a CPA and a one-on-one review before the returns are filed. The software is expensive but definitely cheaper than hiring a CPA.
Another option is H&R Block that is not as expensive as Turbo Tax but gets the job done. Instead of a full Q&A, a semi-guided navigation system leads the individual to a series of questions. There is an option that allows uploading of various forms at any point. A command allows toggling between sections like income, adjustments, deductions, credits and more. Technical terms are hyperlinked to a searchable information database.
Tax Act is the least expensive among all the software tools. It can be a good option for those who are quite confident with their ability to file taxes. The review system highlights omissions, errors and places that can be improved.
An option to software is an accountant who can help with the filing of taxes. However, it is very likely that audit insurance will be offered because protection is very critical particularly nowadays when tax audits have become common. Professional fees can be substantial but with insurance you have nothing to worry about.