ljwalters Posted March 23, 2012 Report Share Posted March 23, 2012 New Client, elderly, used turbo tax last year. When I reviewed her 1040 $379 dividens was input correctly but the qualified dividens went in as $37,856. How did the program let this happen. In my program I get as instant message. qualified can not be more than ordinary, This little typo took the tax due from $9,111 down to $3,434. She got a refund (which never befor happened) of $5,766, which she took and the IRS was glad to give her. Now she owes all that back plus penalties and interest. AND she did not pay her esitmates for 2011 which was normally about $6,000. Turbo tax did not print out the estimates so she didnot pay them. Is there any recourse she can go to Turbo Tax for at least the P&I. I hate Turbo Tax I suspect not. Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 23, 2012 Report Share Posted March 23, 2012 If I were her I'd forget you and just keep using Turbo Tax. :) 2 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 23, 2012 Report Share Posted March 23, 2012 New Client, elderly, used turbo tax last year. When I reviewed her 1040 $379 dividens was input correctly but the qualified dividens went in as $37,856. How did the program let this happen. In my program I get as instant message. qualified can not be more than ordinary, This little typo took the tax due from $9,111 down to $3,434. She got a refund (which never befor happened) of $5,766, which she took and the IRS was glad to give her. Now she owes all that back plus penalties and interest. AND she did not pay her esitmates for 2011 which was normally about $6,000. Turbo tax did not print out the estimates so she didnot pay them. Is there any recourse she can go to Turbo Tax for at least the P&I. I hate Turbo Tax I suspect not. It sound like an honest mistake, I would just amend it for her and have her pay the refund she was not entitled to and penalties and interest. The best outcome out of this, is you will now have a new client, someone that no longer does her own tax return :) Quote Link to comment Share on other sites More sharing options...
jainen Posted March 23, 2012 Report Share Posted March 23, 2012 >>In my program I get as instant message<< You have a better program. She went el-cheapo, and then didn't even do the data entry right. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 23, 2012 Report Share Posted March 23, 2012 " We guarantee all our CALCULATIONS to be 100% accurate" She will waste her time calling Intuit. Tried that for one of our clients. 2009 return, our client ended up with $5,000+ interest and penalties when Turbo Tax allowed $15,000+ office in home deduction and the same for cost of goods on $2,400 in sales. The original audit wanted about $13,000 total. We managed to get it reduced. Turbo Tax is good for my business. "Next year!" Fix her problem, gain a client that will be yours from now on. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 25, 2012 Report Share Posted March 25, 2012 Garbage in, garbage out. BTW, their error message system sucks. God forbid you forget to enter your occupation...but I had an audit on a return where the taxpayer forgot the decimal when entering federal withholdings. had over a million in 'withholding' on 40k wages. NO error message. I tested the program just to see. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 25, 2012 Report Share Posted March 25, 2012 I agree with the others, amend the return, gain the client, she has to pay back money she originally wasn't entitled to. The P & I she, or you, can ask for the penalties to be abated if she meets all the criteria. Sometimes the IRS is a little forgiving but don't count on it. A very good example why folks shouldn't rely on these programs. I had a friend earlier who used Turbo tax made an entry error and by the time she paid for the return, amendment and all other corrections, she informed me the cost of all that was only $5.00 less than my fee would have been. I did give her some friendly assistance to correct this and gained a client for next year. So, there you go and thanks again to Turdbo Tax for providing such a great deal. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 25, 2012 Report Share Posted March 25, 2012 Turbo Tax does not do School District or local city tax. This is a huge selling point for my services here in Ohio. Quote Link to comment Share on other sites More sharing options...
fredazcpa Posted March 26, 2012 Report Share Posted March 26, 2012 As has been said before on here or the other board, tax software does not make a tax preparer, the john q public does not know enough to know something is wrong. have fix a number of turbo tax and have always made a client for life, especially when they deal with IRS on a CP2000 becasue they forgot something 1 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 26, 2012 Report Share Posted March 26, 2012 As has been said before on here or the other board, tax software does not make a tax preparer, the john q public does not know enough to know something is wrong. Yep! Got a DIYer coming in this afternoon cause - wait for it - she doesn't know how the handle her interest from cashed savings bonds. If IRS would just audit all Turbo Tax returns with a refund we could make a dent in the debt. 1 Quote Link to comment Share on other sites More sharing options...
frazzled Posted March 26, 2012 Report Share Posted March 26, 2012 If IRS would just audit all Turbo Tax returns with a refund we could make a dent in the debt. I agree Rita! The IRS could catch all kinds of things - commuting miles and work clothes taken as employee business expense, double dipping on med insurance premiums on Sched A, a "standard" amount for charitable deductions, funeral flowers and service tips as charitable contributions, etc etc etc 1 Quote Link to comment Share on other sites More sharing options...
fredazcpa Posted March 26, 2012 Report Share Posted March 26, 2012 Now that you need a PTIN to efile, make it that the ONLY way to efle is with a current PTIIN and with professional software Quote Link to comment Share on other sites More sharing options...
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