Monday, January 14, 2013

Pen, Paper, and Stamp

Targeting taxpayers for audit is a major factor behind the IRS's push for e-filing. E-filed returns are available for audit several months sooner than paper returns, allowing more time before the three-year statute of limitations expires. The IRS has even boasted that its e-file database is "a rich and fertile field" for selecting audits and has estimated that if its "screeners could be reallocated to performing audits, they could bring an additional $175 million annually."
I always use a spreadsheet to figure my taxes and then fill out paper forms by hand. I use a plain white envelope and hand carry it to the post office. People tell me I'm being paranoid.
Using TurboTax, a 25-year-old woman e-filed a fraudulent 2011 Oregon return reporting wages of $3 million and claiming a $2.1 million refund — and the Oregon Department of Revenue sent her the refund.
Could be I'm just missing an opportunity.