Common Questions about Amended Returns
How much money does online software or national chains usually miss?
For 2009 tax returns, we have found missed refunds ranging from $100-$5,000+, most of them falling around $1,000-$2,000. 9 out of 10 returns have some sort of error and/or missed deduction(s).
Do I need to bring reciepts, W-2's and other documentation along with the tax return?
No; however, if you already have all of your tax information in a folder, just bring the whole thing and save your time sorting through it. If you do not have a copy of your tax return, you can get a copy from the local IRS office (no charge) or authorize us to get a copy from the local IRS office for you ($30).
Who is most likely to get the highest refunds?
Anyone engaging in small business activity or had major tax related events like having a baby, buying a house, going to college, etc. who filed online (TurboTax, TaxAct, etc) or with a national chain (H&R Block, Liberty Tax Services, Jackson Hewitt). Sample small business activities include:
- Owning a business
- Working as a 1099 contractor (realtors, sales reps, consultants, etc)
- Operating a hobby business (photography, crafts, etc)
- Charging for any other product or services (piano lessons, day-care, etc)
Independent contractors as well as "hobby business" owners are prime candidates for additional refunds given their high personal expenses related to their work and their high rate of unprofitability. Refunds over $10,000 usually involve continual mistakes made by a CPA over a period of years for established businesses, but do occur regularly.
What deductions are most commonly missed?
Business investments and business use of personal property are the deductions most commonly missed. Any money spent to create, research, prepare to open, operate or build a business is deductible to that business, even if the business fails or has not yet opened. 1099 reps and "hobby business" owners do not always realize that they can use their business to reduce their tax liabilities, even when their business is not profitable. Usage of a home, vehicles, electricity, cell phones and other personal assets for business can be deducted based on the percentage of use. We can also find scores of deductions for your specific industry!
How long will it take to get my 2nd refund?
Amended returns must be physically mailed to the IRS; likewise, your refund check will be mailed to you and cannot be direct deposited. This process usually takes 8-12 weeks. A long wait, but well worth the investment.
Is there a greater risk of being audited if I receive a 2nd refund?
No. MainStreet strictly operates within ethical and legal boundaries and will only make standard corrections that are acceptable to the IRS. In many cases, we find mistakes that would have put the return at a high risk of being audited and are able to correct the returns to minimize the risk of an audit. High refunds do not mean higher risk of audit.
