A taxing proposition.

THEY DON'T THINK THEY'LL HAVE TO give away the money, but a Colorado Springs tax firm has challenged its own industry to produce empirical evidence that its fellow tax preparers generally are an accurate bunch.

Considering that many small businesses and individuals are preparing their 2003 tax returns right now, it's a timely challenge.

The Tax Recovery Group, a 40-employee company started in 1995 on the premise that it can recover thousands of dollars in overpaid taxes for small and medium-sized businesses, is offering a $1,000 prize for the data.

Carol Arnold, a company spokesman, said last month that no one had yet offered up evidence to claim the prize after TRG's gauntlet had been thrown publicly for about a week. The company had, however, already received some "How dare you!" comments e-mailed to it once the challenge was put forth. Some tax preparers are "a little insulted," said Arnold.

But TRG has made a business of showing small businessmen that their tax returns are often wrong--and not in their favor.

The company says its clients receive an average return of $8,000 after TRG files amended returns following what is usually a three-year review of past filings. TRG takes half of the client's return as a fee, but $4,000 coming back to you after you thought you lost it to the government is no small chunk of change.

It might pay a month's office rent or for the latest networking equipment, or for cell phones to speed up communication with your workers in the field.

TRG, a private company, said it posted about $6.4 million in revenues last year, so it's getting back some significant money for its clients. It does direct tax work for companies as well. Arnold didn't say whether it will review its own past product.

If you are an insulted tax preparer and think you have the empirical goods that proves your industry is generally accurate with its work, send the survey or IRS testimony to [e-mail]. She'll be keeping a sharp eye out for it, but she doesn't think TRG will have to pay up.

Still, it could be worth a grand to you.

BY ROBERT SCHWAB, EDITOR COLORADOBIZ