I keep hearing a rumor that people who file their taxes electronically -- that is, by computer -- are more likely to get audited than those who do paper returns. Do you know if there's any truth to this?
I keep hearing a rumor that people who file their taxes electronically -- that is, by computer -- are more likely to get audited than those who do paper returns. Do you know if there's any truth to this?
Electronic filing won't increase your chances of being audited. However, it will get you into the batch of returns scanned for audit potential more quickly than those who go the paper route. The only advantage to electronic filing from a taxpayer's standpoint is that you will get any tax refund you are owed sooner.