Watch out for tax software revisions
By Peg Monahan, BuyerZone.com Content Manager
If you are preparing your business's tax returns this year using software - such as Intuit's
TurboTax or Block Financial's Kiplinger TaxCut - following just one piece of advice can
save you plenty of time, frustration, and even money. Very simply: Check with the software's
manufacturer for tax form revisions and program updates, both as you begin to work on your
returns and immediately prior to filing them.
Tax software programs ship well before the Internal Revenue Service (IRS) finalizes the
tax forms for the current tax year. If you file your returns using preliminary versions
of the forms found on the software you purchased, and the final forms released by the IRS
are different, the IRS will reject your returns. But, by visiting the Web site of the software's
manufacturer, you'll be able to obtain the latest versions of the forms before you prepare
your returns and then you can double-check that they're the final versions right before
you file.
Contacting the manufacturer also ensures that you're caught up with the most recent program
updates. If there is a bug in the software you bought, and the manufacturer has discovered
it, you'll be able to obtain a workaround before you file your returns. This is an issue
that has troubled both TurboTax and TaxCut this year, but Intuit and Block Financial have
quickly posted fixes on their Web sites. The problems in these two software programs have
ranged from incorrect depreciation calculations to printing errors - critical enough to
warrant immediate attention when your taxes and the federal government are involved.
You can obtain explanations about program updates from both Intuit and Block Financial
by visiting their Web sites. (For TurboTax, click here;
for TaxCut, go to http://www.taxcut.com.)
Once there, if you're running your tax software, you can automatically download enhancements
and fixes. Or, if you would rather receive the updates on a disk, both sites provide toll
free numbers and the companies will send CD-ROMs to you.
It's important to bear in mind that while keeping abreast of program updates is a good
idea for any kind of software, it is essential for tax software. No matter who prepares
your taxes or what kind of software is used, you, as the business owner, are ultimately
responsible for reporting accurate, truthful information to the government in the format
the IRS has mandated.