Situations When Tax Software May Land You in Hot Water

Tax preparation software is a wonderful technology that has significantly reduced the amount of paperwork taxpayers need to fill out during tax time each year. Although this software can help users make fewer mistakes on their annual tax returns, there are some issues that continue to appear year after year, and which could result in unnecessary disputes or which could land you in Tax Court.


Bad math is at the helm of the most common tax return errors. Not only can miscalculations reduce your tax refund or unjustly increase the amount of money you owe this tax season, but can also result in you needing to attend Federal Tax Court or having to deal with unpleasant IRS negotiations.

Erroneous Credits or Deductions

E-filing software makes this process a lot easier than those who may be filling out their paperwork by hand. But mistakes still happen as filers attempt to figure out:

  • Standard deduction
  • Child and Dependent Care Credit
  • Earned Income Tax Credit

Tax filing software can be incredibly convoluted and difficult to navigate if you are not a standard employee. For example, one common mistake made is when those who are 65 years of age or older, or those who are blind, do not claim their higher standard deduction.

Changes on Your Name or SSN

If you are newly married or divorced, or have changed your social security number, it is important to let Uncle Sam know as soon as possible so that the IRS is able to process your tax information without unnecessary delay. Also be sure to review all information provided to ensure that you have not made any typos which could negatively affect your return.

Keep in mind that your software may have retained your information from the previous year and will need to be changed.

Do You Need a Tax Attorney?

The IRS has the power to impose penalties on American taxpayers every year, but contrary to what you may believe, the IRS is not always right. If you have been targeted by an IRS audit or have received letters demanding action, you need to act quickly to protect your assets and your finances.

The Scammahorn Law Firm will advise you on how the law can benefit your case and will challenge the IRS on its findings, file appeals, and represent you in a lawsuit when necessary.

We invite you to call us to speak to an experienced tax attorney today at (903) 595-1000.