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THE SOFTWARE MADE ME DO IT!

November 13, 2006

Henry Broderick from New Jersey understated his taxable income by about $56,000, leaving him with no tax on his return. When the IRS asserted a penalty for understating his income by over $5,000, he manfully stepped up and blamed the software. The Tax Court lacked sympathy:

Petitioner blames defects in his income tax return on software that he claims to have used in preparing the Form 1040 return. Such a program is only an aid for preparation of a return and depends on careful entry of accurate information, which petitioner manifestly failed to do. Petitioner admits that he has the education to prepare and review his income tax return, and that he had an opportunity to review his return prior to filing it. Accordingly, petitioner's use of software in preparing his return does not constitute reasonable cause for the errors in his return or for the deficiency in this case.

It sure is easy to accept what the computer gives you when it makes you happy. That doesn't make it right.

Cite: Henry Broderick, T.C. Summ. Op. 2006-182.

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