Tax Guide
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1. What percentage of tax reviews result in a refund? What is the average refund amount?

Approximately 30% of tax reviews result in a refund. The range of refund amount recovered for our clients was from $600 to $4,000 per tax year.

2. What happens if the tax review specialist studies my tax returns and determines that I owe the IRS money?

Our Check My Return service is performed to discover additional deductions and/or errors in favor of the client. We are not required to disclose-and do not disclose-to the IRS whether a client may owe additional taxes.

3. How many years of previously filed tax returns can be amended?

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.

4. What is an Amended Tax Return?

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.

5. I currently have a preferred tax preparer.

It is not our intention to replace your current tax preparer. We provide you with a 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 process helps ensure that you are not overpaying and-equally important-that your tax preparer is applying all applicable deductions to help reduce your tax liability.

6. Does an amended tax return trigger a "red flag" with the IRS or enhance my chances of being audited?

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.

7. I amended one of my last three years' tax returns. Do I qualify for the service?

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.

8. What kind of information do I need to provide to amend my returns?

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.

9. How long is the tax review process to determine if I have a refund? How long will it take to receive my refund?

Our review period is approximately 3 weeks. Once your amended tax return is filed, the IRS refund is processed on average within 3-4 months.

10. How much does the Check My Return "second opinion" service cost?

A second opinion review of your tax returns is provided at no chrage. If we discover that the tax return is correct, there is no chrage.

If a tax refund is discovered, the fee for our service is 33% 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 Taxes for Expats is tax deductible as a professional fee on your next year's tax filing.

11. Do I pay a tax on the total amended return refund amount on next year's taxes?

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.

12. How do I know Taxes for Expats will maintain confidentiality of my personal information?

All Client-provided personal tax documents are strictly confidential. Through a comprehensive confidentiality agreement, Taxes for Expats 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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