From CPA to TurboTax can trigger Audit?

Forum|Forum|5 years ago
February 20, 2021
2 replies
0 views

Hello.

We decided to move from our CPA for our S-Corp and Personal & Business taxes to TurboTax. We are finding many inaccuracies in the previous tax returns prepared by our CPA, since we started doing this ourselves. We are trying to be very careful and making sure everything there is 100% accurate.

Does the IRS compare previous returns with the current one? Since there will be some differences, is this a red flag for an IRS audit?

Thanks for any insights.

TurboTax Business Windows

Anonymous_

Level 15

What type of inaccuracies are you finding? You might want to discuss any anomalies with your CPA.

AmyC

Level 15

Changing from a CPA to self prepared will not trigger an audit. Changing which line an expense goes on will not normally trigger an audit. Changing the method of depreciation would raise an eyebrow. You want to maintain things like method of depreciation and time period. Some of these changes may not be a big deal at all. You definitely want to move forward correctly. If the changes don't affect the bottom line, it is not as much of a concern.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

spat001Author

Level 3

Thanks Amy.

Depreciation schedule is the only one that I am not very sure about. The depreciation schedule obtained from the CPA says MACRS where as TurboTax used 200DB.

Is there a way to make TurboTax use MACRS?

Thanks a lot!

spat001Author

Level 3

Amy, another concern I have is about the depreciation for the Rental Property that we own. The depreciation schedule that we obtained from the CPA has a current year depreciation and the next year depreciation in it. The next year depreciation (in the schedule that the CPA gave) should match the depreciation that TurboTax has calculated for me for the year 2020, and they do not seem to match.

In fact, TurboTax depreciation is much lower than what the CPA calculated. For the Rental Real Estate, the convention used is MACRS, depreciating over 27.5 years. What could be going on?