E-filing increasing, but tax professionals still find their form
There are just two weeks to go until "Tax Day" and if history is any clue, more Americans than ever will file their returns electronically to meet the April 15 deadline. The IRS says e-filing by individuals has been increasing every year, but that doesn't necessarily mean tax professionals are taking a hit.
In 2012, more than 80 percent of taxpayers filed electronically, and Bob Meighan, vice president of TurboTax, thinks he knows why.
"Because it's convenient, it's fast and probably most importantly to most people is that they can get their refund in about 10 days or so," says Meighan.
According to Meighan, business continues to grow, especially among the 60 million Americans who file simple returns. But for complicated tax situations, many filers continue to turn to professionals.
Joseph Nixa, a CPA with Gordon J Maier & Co. in Racine, Wisconsin, says despite what you might think, he hasn't lost business to tax prep software.
"The proliferation of tax return software, unfortunately, makes many people think they know the tax law," says Nixa. "We're getting more taxpayers that are preparing their returns, having problems and they're coming back to us."
Nixa says some clients say their refund wasn't as big as they expected after using a tax prep program, or they were notified of problems by the IRS.