I was thinking about how often people rely on tax software like TurboTax, and it reminded me of a story that might interest you.
Remember Timothy Geithner? When he was nominated for Treasury Secretary, it emerged that he had made some tax errors in previous years despite his deep financial expertise and using TurboTax to file his returns.
Case Summary
Errors and Discovery:
- Geithner was responsible for paying Social Security and Medicare taxes, but it was discovered that he did not pay them during his initial employment.
- An IRS audit 2006 had previously caught the mistake for 2003 and 2004, which led to Geithner amending his tax returns and paying the back taxes and interest for those years.
Use of TurboTax and Misunderstandings:
- Geithner prepared his tax returns using TurboTax. He asserted that the errors were due to his misunderstanding of the tax software’s prompts.
- He admitted that he had completed the entries for wages and withholding, assuming incorrectly that the software would deduce the need for payments like self-employment tax. The IRS then waived the accuracy-related penalties.
That got me thinking about your situation and why having something more personalized than what off-the-shelf software can offer is crucial. Here at Palma Financial Services, we tailor our strategies specifically to the complex needs of individuals like yourself.
I’d love to show you how we can give you peace of mind that your taxes are handled with expert care. Why not schedule a time for us to chat? Click the link below or call me at (408) 708-9330.