Agree, IRS hasn't the ability to audit most returns. Long, long time ago in a Playboy article on taxes, it said take every deduction you can "dream up", put the refund money in the bank for 3 years, and if you're not called for an audit it's yours to keep. Most couldn't do that, they rather sleep at night. 50 years later, not so much when we hear of billions in fraudulent refunds. Seems easier to rob taxpayers, than banks, no mask or get away car needed, can do it from home while sipping coffee. Congress needs to re-think these refundable credits (IRS should be a collection agency, not a welfare agency that hands dollars out), and needs to get ALL W2's and 1099's, and 1098's into their computers before accepting returns to make sure they are legit. 2 simple ways to clean up fraud!
OH MY, stock price is sad. Could it have been over the 50% off? Had one client who told me it was 50% off last year's price by forms, and since he needed extra forms this year the price kept going up till he left. I know the reduced price had to hurt the preparers finally hourly pay, which I imagine hurt their moral. Was it just a down year as has happened in the past, due to no new tax codes to deal with, or is Turbo Tax getting friendlier.
Had a neighbor that used Turbo Tax and owed a couple thousand, he got stuck on Form 8880, not understanding what to do so he asked me to look at it, and we ended up with an $1,800 refund, because he left his business income off due to losing money, and he thought he didn't have to report a loss. Turbo Tax may be a great way to save money, but when I think of some of the questions and remarks clients make on what they believe are deductible expenses (my brother says so and does it every year), I always wonder could that little piece of misinformation cost brother later when it's caught and interest and penalties are added.
Luckily for one client who got an IRS bill for over 6K, we had done his return. It was an IRS error that he was ready to pay, thinking IRS must be right. Had he done it on his own, he would have paid it without question.
Great question, I've asked myself for years. This annual reporting of all income to the feds, to how big our families are, to who qualifies as our dependents, and having the IRS constantly looking over our shoulder where they already know our birthdays, our addresses, where our kids go to school and how much we give to charity, or how big our mortgage payments are, and what assets we sell. It's become the "BIG Brother" nightmare with access to all our money and can punish us with higher taxes unless we follow their social engineering where your dollar gets treated better than my dollar cause you know what special interest loophole they deem worthy of not being taxed. It's such a complex system, where one can get thousands and thousands of dollars in refunds year after year for not being truthful, it's created an "underground" (under the table) workforce. Congress does NOT want IRS to go away, it's half their power in controlling the population, selling loopholes for campaign money, and keeping them on a spending streak of pork barrel projects. Why do we put up with it? They can jail us if we don't!
Wishful don't forget their newest marketing. 50% off. Great for clients, but commission based pay is also cut in 1/2! When Richard and Henry gave discounts, they would still pay the preparer their % on the full cost before the discount, and GREW the # of offices, and loyal preparers. HO HUM, that's when OWNERS ran companies and called staff family and wanted us to stay around.
Except for the 1095's, (most not needing any input) it's a boring year of same ole, same ole. Nothing exciting or challenging. With what I'm seeing, most people can do their own return using last years' as their guide. We seriously need Congress to simplify our tax codes like they did in 1986 with over 400 changes that made it a banner year just on the depreciation method of ACRS. I think of all the Forms lost to time. Sch W, Sch G, 5-10 year averaging even if not born before 1936. With the short version of OIH, it's one click, no more direct or indirect columns, adding up those yearly utility bills. HO HUM.