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Free tax preparation services are vastly inferior to a personal service. I got audited because I did some stock market gambling and my return only showed the lo
by ohiovr 4y ago
Free tax preparation services are vastly inferior to a personal service. I got audited because I did some stock market gambling and my return only showed the loss and gain for everything and not for every stock traded. So the IRS sent me a letter that my income was in the tens of thousands of dollars because every instrument sold was assumed to be of no cost to acquire making it 100% capital gains. When TD ameritrade reported my trades they did not report the cost basis to them. So I got a letter saying I owed thousands in taxes with no indication in there that I should see a tax prep to clear it up and submit a correction.
Lessons learned:
1. Don't gamble or invest in stocks.
2. Always use a professional to do your taxes.
I was also informed never to sign a letter to agree. Fortunately I never did that.