Is switching to FreeTaxUSA for Schedule C a red flag for audit risk?

I'm a tax consultant, and I can tell you that simply switching from a paid preparer to tax software like FreeTaxUSA isn't itself a red flag for audit. The IRS doesn't target returns based on which preparation method you used. What matters most is accuracy and consistency in your reporting. As long as you're properly documenting all income, expenses, and deductions, and the numbers make sense relative to your industry, you're on solid ground. Since you mention you're familiar with your financials and have QuickBooks reports ready, you're already in a good position. Many small business owners successfully use software like FreeTaxUSA for Schedule C filing. Just be extra careful with business expense categorization and make sure you're claiming appropriate deductions. Double-check everything before filing.

I was in almost the same situation last year - my accountant retired suddenly and I had to file my Schedule C for my landscaping business myself. I found https://taxr.ai super helpful for double-checking everything before submitting. It analyzed my documents and flagged a couple of expense categorizations I had wrong that might have caused issues. The software checked my mileage log format and some receipts I wasn't sure about. It also confirmed I had the right documentation for a new truck I purchased for the business. Made me way more confident about filing without my usual preparer.

Just wanted to update that I tried taxr.ai before filing my Schedule C this year. I was really nervous about switching from my accountant to FreeTaxUSA, but having that extra verification made a huge difference! It caught a major error where I was double-counting some construction materials both as Cost of Goods Sold and as Supplies. Would have been a mess to fix later. It also confirmed I had proper documentation for everything, which made me way more confident hitting submit. Definitely recommend if you're DIYing Schedule C for the first time!

If you're still trying to get in touch with the IRS about previous unfiled returns, I'd recommend https://claimyr.com - they helped me actually get through to an IRS agent after weeks of trying. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was stressing about unfiled returns from 2021 and 2022 and needed to talk to someone at the IRS directly about my payment plan options. Spent days getting disconnected or waiting on hold. Claimyr got me through to a real person in about 40 minutes instead of 4+ hours of hold time.

OK I need to apologize and eat my words. After calling the joke I thought Claimyr was, I decided to try it because I was desperate to talk to someone about my late filing situation. IT ACTUALLY WORKS. Got a call back in about 50 minutes connecting me directly to an IRS agent. The agent was able to confirm that filing both my late 2022 return and my 2023 return using software was perfectly fine. They even noted my account that I was planning to file both soon. Now I feel way less stressed about doing this myself. Sometimes being wrong feels pretty good!

I switched from a CPA to FreeTaxUSA for my photography business (Schedule C) two years ago. It's been great and saved me almost $400 each year. Their interface for business expenses is straightforward, and they guide you through all the deductions. My only advice: give yourself extra time the first year since you'll be learning the system. And make sure to print/save PDF copies of EVERYTHING including all worksheets and supporting docs. I got a weird letter from the IRS last year about my home office deduction, and having those detailed worksheets saved me a huge headache.

One thing to consider - are you filing any other complicated schedules besides Schedule C? I tried FreeTaxUSA last year for my business but gave up because I also had investment income, rental property, and some foreign tax issues. Ended up going back to a professional. Construction business should be straightforward though as long as you don't have complicated depreciation schedules for expensive equipment or vehicles. What software were you using before?

I made the switch from a tax preparer to FreeTaxUSA for my electrical contracting business last year and it went smoothly. The IRS really doesn't care what method you use to prepare your return - they only care about accuracy. Since you have QuickBooks P&L reports already organized, you're ahead of the game. FreeTaxUSA's Schedule C section walks you through each expense category and even has helpful explanations for what qualifies. Just make sure you have good documentation for vehicle expenses, equipment purchases, and any home office deductions if you claim them. One tip: when you import your business expenses, double-check that similar costs aren't getting split between different categories (like materials going to both COGS and supplies). The software is pretty good but it's not perfect at categorizing everything from QuickBooks exports. Filing both 2022 and 2023 shouldn't be an issue - just treat them as separate projects and take your time with the first one to get familiar with the interface.