MAINSTREET EXPOSED
Despite warnings from the IRS and tax professionals, AI-driven tech firms like MainStreet are posing as legitimate tax experts. Their pitch? A seamless AI-enhanced platform that finds and files government tax credits, including R&D credits, so startups can get money back without lifting a finger. The reality? Government tax credits, especially R&D, are highly complex. Relying too heavily on AI without expert oversight can lead to inaccurate claims and IRS audits.
MainStreet’s new CEO, Jesse Tinsley, who founded Employer.com, tries to bring a sales-driven mindset to the tax space. But with R&D tax credits, sales growth tactics do not replace tax expertise. Missteps can cost clients far more than they save.
THROWING THE RED FLAG ON MAINSTREET
MAINSTREET CLAIM
“We stick to IRS guidelines to ensure that your R&D tax credit claim is always accurate and compliant.”
REALITY
While MainStreet may claim to follow IRS guidelines, fully relying on AI for complex tax credit qualifications doesn’t guarantee accuracy, especially when the IRS definition of “qualified research” relies on nuanced, case-by-case interpretation.
MAINSTREET CLAIM
“In the event of an error, we pledge up to $1 million to help you with any resulting penalties.”
REALITY
The fine print matters: this coverage is not automatic, it requires proof that MainStreet’s AI was solely at fault, not your company. So, MainStreet may give a payout when clients are faced with a hefty fine if it can be proved they were at fault. No payout undoes the IRS scrutiny. American taxpayers and companies should not be at risk for $1 million worth of errors…What is the error rate on Main Street’s AI? If they are confident in their tech, this kind of disclaimer raises more questions than it answers. And it remains unclear whether or not MainStreet would even represent their clients if they are audited.
MAINSTREET CLAIM
“We take the guesswork out of tax credits.”
REALITY
AI can make the process faster, but it doesn’t simplify a complex R&D filing. Figuring out what qualifies for R&D still requires human insight.
MAINSTREET CLAIM
“The U.S. government offers billions of dollars in startup-friendly R&D tax credits every year—but the claim process is complex and time-consuming.”
REALITY
That complexity exists for a reason. According to the IRS, R&D claims require “a contemporaneous, comprehensive documentation process” and a detailed showing of how activities meet specific legal criteria. Oversimplifying that process, by solely relying on AI, can lead to overclaiming, putting companies at risk of breaking the law. Without the proper expert oversight, AI tools threaten to blur the lines of eligibility and trigger audits.
MAINSTREET CLAIM
“We can find you hundreds of thousands of tax savings in under 5 minutes.”
REALITY
MainStreet may surface potential savings quickly, but verifying eligibility and preparing defensible claims takes far more time, documentation and expert review than five minutes.
HOW MAINSTREET’S MODEL IS TRAINED
MainStreet’s AI software scans 77,000 pages of the IRS tax code in order to file on their client’s behalf. However, understanding complex R&D eligibility takes more than simply searching keywords through countless pages. MainStreet promises the ‘best savings,’ but this could come with IRS audits and fines. Tax credit eligibility is not something you can simply train into a model, it requires human understanding and direct input.