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The Software Botched My Return

Friday, May 7th, 2010

Sorry, this excuse does not cut it with the IRS. This Tax Court case punched a big-ole hole in the so-called Tim Geithner defense that a software error caused the tax understatement. This lady tried to do her taxes with TurboTax, but reported various transactions on the wrong forms and reported a rental loss on the house her father lived in rent-free. The software calculated everything correctly according to the information she input, but it could not tell whether she was putting the numbers in the right places. They make it look so easy and foolproof on those TV ads, don’t they?

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