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Home :: Frequently Asked
Questions
Frequently asked questions... and their answers.
Q:
What percentage of tax reviews result in a refund? What is the average
refund amount?
A: Approximately 60% of tax reviews
result in a refund. The average tax refund amount is $6,000 - $10,000.
Q:
What happens if the tax review specialist studies my tax returns and
determines that I owe the IRS money?
A: Our independent tax review
specialists are contracted to review Client tax returns to discover
additional deductions and/or errors. They are not required to disclose—and
do not disclose—to the IRS whether a client may owe additional taxes.
Q:
How many years of previously filed tax returns can be amended?
A: Taxpayers can file amended tax
returns up to three years after the due date or filing date of the original
return, whichever was later. Taxpayers who filed 2002 tax returns by April
15, 2003, have until April 15, 2006, to amend those returns. A taxpayer who
was granted an extension to file a return in 2001, and actually filed the
return on July 15, 2002, would have until July 15, 2005, three years from
the date the return was actually filed, to amend it.
Q:
What is an Amended Tax Return?
A: A revised tax filing based on
previously submitted tax return(s) to the IRS. The amended tax filing
includes adjustments based on previously recorded errors and/or omissions.
The IRS releases new tax deductions after the tax season is over. The IRS
made over 400 new tax changes in 2002 alone. The IRS allows the taxpayer to
take advantage of and apply the new deductions to previous tax filings.
Q:
I currently have a preferred tax preparer.
A: It is not the intention of Taxback to
replace your current tax preparer. The independent tax review specialists
that partner with Taxback provide you with a FREE Second Opinion—giving you
peace of mind that your tax preparer is working in your best interest to
correctly file your tax returns. According to the IRS, a substantial number
of taxpayers are overpaying their taxes. And over half of these tax returns
have been prepared by professional accountants or CPAs. Our independent tax
review specialists help ensure that you are not overpaying and—equally
important—that your tax preparer is applying all applicable deductions to
help reduce your tax liability.
Q:
Does an amended tax return trigger a "red flag" with the IRS or enhance my
chances of being audited?
A: The IRS created the amended tax return
process for taxpayers to take advantage of numerous changes in tax laws and
to correct errors that were made. An estimated 3.3 million people amended
their taxes in 2002. The IRS finds that approximately .5 percent of
individual tax returns result in audit reviews. The chance of having a tax
return randomly selected for audit review is minimal.
Q:
I amended one of my last three years’ tax returns. Do I qualify for the
service?
A: Yes. Any of the last three years’ tax
returns can be amended as many times as needed to discover all missed
deductions and/or errors.
Q:
What kind of information do I need to provide to amend my returns?
A: The last three years’ previous tax
returns and supporting schedules are required. Additional documents may be
requested if new adjustments are claimed with the IRS on the amended tax
return.
Q:
Are my tax documents returned?
A: You will receive a copy of all filed
amended tax returns. If the independent tax preparer determines you are
paying the appropriate amount of tax, your tax documents are permanently
discarded.
Q:
How much time will I have to spend with the independent Taxback tax
specialist to complete the review?
A: Most questions that your tax review
specialist may have are typically answered within the tax documents and a
questionnaire. Once an adjustment is discovered that could be applied, but
is not currently supported by the provided documentation, you will be
contacted before the deduction is applied. If your tax review specialist has
additional questions regarding your returns, you will also be contacted.
Q:
How long is the tax review process to determine if I have a refund? How long
will it take to receive my refund?
A: The Taxback review period is
approximately 3 weeks. Once your amended tax return is filed, the IRS refund
is processed on average within 3-4 months.
Q:
How much does Taxback’s "second opinion" service cost?
A: A second opinion review of your tax
returns is provided at NO CHARGE. If your tax review specialist discovers
that the tax return is correct, there is NO CHARGE. If a tax refund is
discovered, the fee to Taxback is 50% of the total amount of the tax refund.
An additional 10% can be saved by the Client by pre-paying the estimated
refund amount. The fee paid to Taxback is tax deductible as a professional
fee on your next year’s tax filing.
Q:
Do I pay a tax on the total amended return refund amount on next year’s
taxes?
A: You are not required to pay tax on
any Federal or Social Security/FICA refunds received, except for on the
interest that the government pays you. You are required to pay taxes on all
state refunds.
Q:
How do I know Taxback will maintain confidentiality of my personal
information?
A: All Client-provided personal tax
documents are strictly confidential. Through a comprehensive confidentiality
agreement, Taxback provides assurance that personal information will not be
sold, rented, disclosed, or shared, in either written or verbal form, with
any third parties. All material provided is permanently discarded at the
conclusion of the tax review service, if a tax refund is not discovered. If
a tax refund is discovered, the tax preparer will confidentially maintain
tax records for three years.
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