Tax experts?! Because I'm apparently NOT!!

[drgnfly30]

After I filed my state taxes this year I realized I may have made a mistake ... Duh, so I call to get clarification & realize that not only did I make a mistake, I have made similar mistakes on my 2003 & 2004 taxes as well - all in my favor....

While the 'found' money will come in handy (about $1400 in total) I'm afraid this is going to raise a red flag with them & cause them to audit me like crazy (my Mom got audited for something two years ago - not in her favor - & they've audited her every year since)....

Should I go to a tax preparer just to make sure all my 'ducks are in a row'?? They aren't complicated taxes, it's just that I misunderstood how tax liability to other states was handled..... I really don't want to pay someone if I don't HAVE to...

If I do; how much would I expect to pay??

 

[drgnfly30]

Nobody

 

[mickman1962]

My opinion of most (not all) tax preparers is that they do nothing more then you do when you sit down with Turbotax. They answer the questiosn as they come up, nothing more. If you are confident you are correct this time just do it yourself, if you are unsure I would go to an accountant to be sure.

 

[Charade]

I would also recommend Turbo Tax. I've been using it every year since it came out (which was on 6 floppy disks!!). Run through the "interview" and see what your results are compared to what you filed. I don't know what your next step would be but I believe you have to file an amended return for 2003,4 and 5. Unfortunately, you can only buy (unless you really search) Turbo Tax for 2005.

 

[N.Bailey]

Have them amended and take the money. It's my understanding that all audits are random, so my guess is, you have no better or worse chance of being audited in the future than anyone else.

Whatcha buyin' me good?

 

[POB14]

It's my understanding that all audits are random, so my guess is, you have no better or worse chance of being audited in the future than anyone else.

Not all audits are random. From Publication 556 ("examination" means "audit"):

Examination selection criteria. Your return may be selected for examination on the basis of computer scoring. A computer program called the Discriminant Inventory Function System (DIF) assigns a numeric score to each individual and some corporate tax returns after they have been processed. If your return is selected because of a high score under the DIF system, the potential is high that an examination of your return will result in a change to your income tax liability.
Your return may also be selected for examination on the basis of information received from third-party documentation, such as Forms 1099 and W-2, that does not match information reported on your return. Or, your return may be selected to address both the questionable treatment of an item and to study the behavior of similar taxpayers (a market segment) in handling a tax issue.
In addition, your return may be selected as a result of information received from other sources on potential noncompliance with the tax laws or inaccurate filing. This information can come from a number of sources, including newspapers, public records, and individuals. The information is evaluated for reliability and accuracy before it is used as the basis of an examination or investigation.

That said, yeah, file the amended and take the money. It's yours!

 

[RadioNate]

Filed the ammended returns. I think you have up to 5 years to ammend. I think you can get past years of Turbo Tax from their website.

 

[DVC Sadie]

I would post this thread on the Budget Board. There are several people over on that board who are tax accountants plus a lot of other very knowledgeable people in regards to finance.