Vent: My old tax preparer cost me $1,200 in penalties

I used to hand my receipts to a guy named Dave every April and let him figure it out. He charged $150 and I never checked his work. Last year the IRS sent me a notice saying I owed $1,200 in late fees plus interest. Turns out Dave filed an extension without telling me. Now I do my own taxes using FreeTaxUSA and double check everything myself. It takes me 4 hours but I catch every deduction and file on time. Has anyone else had a preparer mess up their babble finance stuff?

3 comments

3 Comments

drewgonzalez2d ago

Dave charged me $150 too and I found out he was just printing my paperwork wrong every year? My guy put my home office deduction in the wrong spot and I had to pay a $600 penalty after an audit. Now I use the same software as you and I actually get to keep more money back because I catch the little things. It is wild how trusting you get with these preparers until they mess up your whole year.

the_thea2d ago

Wait, Dave didn't even tell you he filed an extension?

taylor.hayden2d ago

I used to think paying someone to do my taxes was the smart move, like I was being responsible by handing it off to a pro. But then my old guy forgot to file a form for a side gig I did one year, and I ended up paying $800 in penalties that he wouldn't cover. That really changed my mind about it. Now I do them myself with the free software too, and honestly feeling like I actually understand my own money is worth the few hours it takes.