Associate Professor of Accounting and Law Rodney Mock recently contributed to two Washington Street Journal stories on the recent influx in the use of tax preparation software and electronic filing. He discusses the problems arising from the “Turbo Tax defense,” which becomes an issue when taxpayers are faced with penalties from the IRS. When using a tax professional, the taxpayer is protected against errors by claiming reliance on the tax advisor. But, with more and more Americans opting to use tax preparations software such as Turbo Tax, there is no protection for the taxpayer in the case that errors were made by the software. Professor Mock discusses the fact that, while in most cases tax preparation software is beneficial, it can become problematic for more complicated tax returns.
He explains this concept in more detail in this interview with the Wall Street Journal, and in a follow-up article he wrote for the WSJ online: