A tax professional vs Tax Software?

What are the pros and cons of using tax preparation software like TurboTax vs a CPA?

• If one has been using the Premier edition and has good records of all itemized deductions (imported stock sales, 1099s, emails of rental expenditures, etc.) and nothing too complicated like a home-based business, are there compelling reasons to switch over to a CPA? Have there been any discoveries of bugs, or misinterpreting of tax laws or any other issues that resulted in inaccurate returns? My situation- I've been using TurboTax for probably 10+ yrs now and actually rather enjoy the prep work and importing the data. I have a couple of rental properties, am a fairly active stock trader, but am not running a business and work a standard corporate gig.

• Answer:

  If nothing has changed in your personal financial situation, and you understand what's on your return when you send it in well enough to be able to defend the information on it should you be audited, I wouldn't suggest that you switch. I'm not aware of any bugs or misinterpretations of tax law in TurboTax software that have led to inaccurate returns being filed. I'm aware of inaccurate returns being filed using TurboTax that have resulted from taxpayer misinterpretations and/or misuse of the software, of course, but that's not the same thing. The areas where I have the most concern about TurboTax and its competitors are for clients who are running small businesses or who have unusual stock transactions (short sales, wash sales, RSU exercises, etc.), and in those situations I recommend that you at least have a professional review your self-prepared returns if you're going that route. You generally want a professional to work with you when you are dealing with a new situation, or when you don't fully understand the complexities of the law as it applied to your existing situation.