4 ms·

I recommend you file taxes via paper if you want to avoid being audited. Everything is manual for paper returns. With electronic filing it goes into the ML anti

I recommend you file taxes via paper if you want to avoid being audited. Everything is manual for paper returns. With electronic filing it goes into the ML anti-fraud pipeline.

toomuchtodo 3y ago
Paper returns are audited at a much higher rate, as errors on the return will trigger an audit. Audit rate also rises with higher income, as does circumstances deviating from the mean (digital assets, foreign accounts, certain partnerships, etc). https://pro.bloombergtax.com/brief/common-irs-audit-triggers/ https://pro.bloombergtax.com/brief/common-irs-audit-triggers... https://www.irs.gov/pub/irs-utl/statement-for-updated-audit-rates-ty-19.pdf https://www.irs.gov/pub/irs-utl/statement-for-updated-audit-... IRS has an ML/AI team funded with the Inflation Reduction Act and is fully digitizing, which will assist in finding tax evasion and fraud. They even have a contract with Chainalysis for tracking public crypto (Chainalysis Reactor). https://www.chainalysis.com/chainalysis-reactor/ https://www.chainalysis.com/chainalysis-reactor/ https://fedscoop.com/irs-to-use-ai-to-crack-down-on-millionaires-and-large-business-partnerships-that-owe-back-taxes/ https://fedscoop.com/irs-to-use-ai-to-crack-down-on-milliona... https://fedscoop.com/irs-launches-digitization-effort/ https://fedscoop.com/irs-launches-digitization-effort/ > Using IRA resources, taxpayers are now able to respond to more notices online, and the IRS says it has made significant progress adopting new technology that automates the scanning of millions of paper returns. > In the coming two years, taxpayers will be able to digitally submit all correspondence, non-tax forms, and responses to notices which will allow more than 94% of individual taxpayers to no longer ever need to send mail to the IRS, according to the agency. > It added that taxpayers who still want to submit physical paper returns and correspondence will be able to do so.
- 5555624 3y ago
  > Paper returns are audited at a much higher rate, as errors on the return will trigger an audit. Maybe for errors that cost the government money. I've always filed my taxes with paper returns. (40 years) I've made errors two or three times; but, they've always resulted in an additional refund amount.
deleted 3y ago
[deleted]

I recommend you file taxes via paper if you want to avoid being audited. Everything is manual for paper returns. With electronic filing it goes into the ML anti-fraud pipeline.

toomuchtodo 3y ago

Paper returns are audited at a much higher rate, as errors on the return will trigger an audit. Audit rate also rises with higher income, as does circumstances deviating from the mean (digital assets, foreign accounts, certain partnerships, etc). https://pro.bloombergtax.com/brief/common-irs-audit-triggers/ https://pro.bloombergtax.com/brief/common-irs-audit-triggers... https://www.irs.gov/pub/irs-utl/statement-for-updated-audit-rates-ty-19.pdf https://www.irs.gov/pub/irs-utl/statement-for-updated-audit-... IRS has an ML/AI team funded with the Inflation Reduction Act and is fully digitizing, which will assist in finding tax evasion and fraud. They even have a contract with Chainalysis for tracking public crypto (Chainalysis Reactor). https://www.chainalysis.com/chainalysis-reactor/ https://www.chainalysis.com/chainalysis-reactor/ https://fedscoop.com/irs-to-use-ai-to-crack-down-on-millionaires-and-large-business-partnerships-that-owe-back-taxes/ https://fedscoop.com/irs-to-use-ai-to-crack-down-on-milliona... https://fedscoop.com/irs-launches-digitization-effort/ https://fedscoop.com/irs-launches-digitization-effort/ > Using IRA resources, taxpayers are now able to respond to more notices online, and the IRS says it has made significant progress adopting new technology that automates the scanning of millions of paper returns. > In the coming two years, taxpayers will be able to digitally submit all correspondence, non-tax forms, and responses to notices which will allow more than 94% of individual taxpayers to no longer ever need to send mail to the IRS, according to the agency. > It added that taxpayers who still want to submit physical paper returns and correspondence will be able to do so.

5555624 3y ago
> Paper returns are audited at a much higher rate, as errors on the return will trigger an audit. Maybe for errors that cost the government money. I've always filed my taxes with paper returns. (40 years) I've made errors two or three times; but, they've always resulted in an additional refund amount.

deleted 3y ago

[deleted]