I've been using a professional CPA for my domestic and SCorp taxes since 2008. I have felt like it has made sense as a timesaver, worry saver and perhaps as an "insurance policy" against audit. With respect to the professional service for the domestic taxes, this year feels different. I'm interested in conserving money, and my domestic filing seems pretty simple this year. For the domestic filing, I have investment 1099's and SSI. For expenses, I have a few hundred dollars in Schedule C expenses, a new Schedule C asset valued at a few hundred dollars (which would join a few other similar assets from the past in being depreciated), and K-1's (mine and spouse) for the SCorp. There is a large loss carry over which would either increase this year or absorb any taxes due. I believe I can figure out how to use Turbo Tax. Doing so would save me several hundred dollars, even if I bought extra TT services. I can file an extension and take my time to figure it out. I can afford the CPA for another year, however, this seems like easy money.
The only complication I can see might be from the SCorp. I've read that the business losses (a few hundred thousand total over 15 years) might catch audit attention. For the SCorp, it made money in 2008. It's had losses since, primarily from product development costs. I have ample evidence that it's a real business, and it made a little money recently. I've kept tax returns for the past 10+ years. I feel like I am very careful in corporate records, expense reporting and record keeping, retaining all details (same for domestic taxes). The SCorp filing for this year has been done by the CPA.
The question is: suppose I keep good records and use Turbo Tax properly. All other things being equal, would having my CPA do my domestic taxes have any effect on whether or not I might be audited?
