Tax preparers' fees do not reflect accuracy. There was no correlation between the size of preparers’ fees and how well they scored. (Money, March 1988, March 1989, March 1997)
Congress can cut taxes all it wants, but if your tax preparer doesn’t know all the rules – and Money’s tax test shows that most don’t – you might actually end up paying more. (Money, March 1998)
The CPA who designed 1989’s test with a colleague felt that so many did poorly because taxes are just one part of their practice; and tax law has become too complex to keep up with on a part-time basis. (Money, March 1990)
None of the 50 preparers aced all 10 questions, and only 34 got at least half right.
Fewer than half could cite the income levels at which the new rates kick in.
Only one could explain how the new law changes the taxation of some municipal bonds.
Only 1 knew that the gain on a tax-exempt bond could be taxed as ordinary income.
Only 18 could accurately define provisional income.
Just 6 knew the precise changes that were made to the AMT (Alternative Minimum Tax).
Only 19 could say why the new law takes away many advantages of using a trust as a tax–saving device.
Get A FREE second opinion on your personal or business income tax returns.
Tax Resolution Specialists, Inc.'s personalized service offers you a risk-free way to be sure that during the three previously filed tax years:
1) Your taxes were properly prepared!
2) You didn't overpay on your income taxes.
You could recover overpaid taxes, hassle free, with no up-front, out-of-pocket expense while also potentially saving you tens of thousands of dollars in the future by not making the same mistake twice.
The best part...
If no refund is found you pay nothing and you can have the peace of mind knowing that your tax preparer claimed every possible tax deduction. Our service will find every deduction that is legally, ethically, and rightfully yours by law.
When a refund is discovered, you are owed money you didn't know about. Who couldn't use a few "extra" dollars?
A local firm found they were getting back over $27,000 just for the last 3 years! The scary thing is how many tens of thousands, possibly hundreds of thousands of dollars, have been lost over the last 20 years.
Why get a second opinion?
In May 2002, The Wall Street Journal stated that, "Tax experts say many Americans are routinely failing to take deductions they're entitled to, thus overpaying their taxes by billions of dollars collectively."
More than half of all taxpayers pay someone to prepare their taxes, and most believe they benefit by doing so. But according to a new report released on April 1, 2003, by the General Accounting Office (GAO), the investigative arm of Congress, millions in fact "are poorly served".
Money Magazine's test reveals HUGE tax preparation discrepancies!
Since 1987, Money magazine has conducted a total of eight "tax tests" for the purpose of testing the knowledge and ability of tax preparers across the country. The test involved sending a financial profile of a hypothetical family to an average of 50 seasoned tax professionals, who agreed to use the data to complete the family’s tax return and then be judged by Money. The tax issues presented on the tests were fairly standard, and in the course of a filing season, the tax pros were bound to encounter most, if not all of them.
The table below tabulates the tax test results for all 8 years that the test was conducted:
"The implication for you is obvious. Chances are your return is so riddled with errors – even if it’s one of the 48% that will be handled by a professional – that you’re paying as much as 25% too much income tax." (Money, March1997)
This year, Money magazine did something a little different. Instead of the traditional tax test, they drew up a list of 10 questions about the tax law passed by Congress in 1993, to test tax preparers’ knowledge of its key provisions. Fifty tax preparers, plucked at random from the Yellow Pages of Atlanta, Minneapolis, Philadelphia, San Diego and Seattle, were asked to take the quiz.
The tax preparers did quite well on the easier questions, but stumbled on questions that were supposedly no-brainers. Here are the results:
Overall Result: There is an average discrepancy of over 300% in what these tax preparers state is due.
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: 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 $3,000 - $6,000.
The fee paid to Tax Resolution Specialists, Inc. is tax deductible as a professional fee on your next year’s tax filing.
Tax Resolution Specialists, Inc. provides complete assurance that personal information will not be sold, rented, disclosed, or shared, in either written or verbal form, with any third parties at any time. All material provided is permanently discarded at the conclusion of the tax review, if a tax refund is not discovered. If a tax refund is discovered, we will confidentially maintain any tax records.
"Representing taxpayers with integrity, authority & tenacity."
Range of Tax Preparers'
$7,202 - $11,881
$187 - $2,500
$12,539 - $35,813
$250 - $2,200
$9,806 - $21,216
$271 - $4,000
$6,807 - $73,247
$375 - $3,160
$16,219 - $46,564
$520 - $4,500
$31,846 - $74,450
$375 - $3,600
$36,322 - $94,438
$300 - $4,950
$34,240 - $68,912