While reading a recent newspaper article, I noticed a story about a couple getting horribly lost and worse by simply following their GPS device instructions.  It  makes me think how easy it is to believe that our technology has all of the answers.

It comes as no surprise that blindly following tax advice from a software program, an inexperienced tax preparer, a Google search or worse, a know-it-all friend or acquaintance, can be just as dangerous. 

At least the GPS tells you that you are “assuming all risks” when you start up the device.  Signing your tax return also means you are “ASSUMING ALL RISKS.”  If there is an error, you pay all of the tax, interest and penalties.  Drawing the attention of the IRS is never pleasant.

The tax laws are much more complex and confusing than simply finding a location on a map.  Alternative minimum tax, taxation of social security benefits, tax credits, phase outs all are examples of thinks not appearing as they seem.  Rules of thumb are now extinct when it comes to taxes.  Laws changing every year and sometimes multiple times a year means last years good advice may be this year’s bad advice.

Sometimes you just need to ask for directions.  When navigating dangerous terrain, also known as the Internal Revenue Code, use a guide that has the experience and continuous training to get you home safely.  An experienced and licensed tax advisor is invaluable.

Steve

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