Today I got a nice bill from the IRS for about $4000. Seems a Schedule D was not filed with my 2004 return and the IRS had a 1099-B from a mutual fund company that should have been reported on said Schedule. The 1099-B was correct; I have not yet ascertained whether or not TurboTax simply didn't file it (the Sch. D) or if I forgot it. The latter seems unlikely as I keep records like you wouldn't believe. On the other hand, I lose my car keys alot...
Anyway, I presently have TT 2005 on my computer and I thought, "No problem, I'll just pop open my 2004 return." Bzzzt. You can't just open the preceding year's tax return, you have to tranfer it into a new return. That's not a big problem at all; however, I was surprised and as I drilled down into the TT documentation it would seem to indicate that you can transfer-in the previous year's return AND THAT'S IT. There would appear to be no way to access returns other than the current Tax Year and the previous TY. So, for instance, if I had wanted to open my 2003 file, I would be outta luck.
This little episode shows a couple of important things that TT users should remember.
1) Save the TT installation CD with a printout of your return.
2) Print-out EVERYTHING including the supporting statements that don't get filed with your return. It may take a ream of paper, but the tree is worth it.
In the event that you didn't have the old TT software, an
EXHAUSTIVE printout might really save the day for you.
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If others have had real-life episodes with TT that conflict with what I've said above, please report your findings. I've stated some of my conclusions about backwards compatibility based on my readings of TT documentation and actually trying to open both 2003 and 2004 files.
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How it turned out:
Since I'm a "records freak", within half an hour of getting the IRS bill, I was able to show that the IRS actually owned me about $5. Guess we'll see what happens..