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by **Liam** » Fri Sep 27, 2013 3:41 pm

I am handwriting my Form 1040, then mailing it.

Would it be better if I typed it, then mailed? Or, submitted it using TurboTax (or similar)?

In short, does the submittal format matter?

by **chaz** » Fri Sep 27, 2013 3:53 pm

Probably not if legible.

by **Electron** » Fri Sep 27, 2013 3:54 pm

Many people use the PDF format tax forms available on the IRS website. You can fill in the forms using your computer and then print them.

http://www.irs.gov/Forms-&-Pubs

My understanding is that the pdf tax forms are optically scanned into their system. I don't believe a hand written form would trigger an audit by itself.

by **SeattleCPA** » Fri Sep 27, 2013 3:55 pm

I don't know. Here's my guess though...

Completing a tax return by hand should not in and of itself increase the DIF score your tax return gets ... which important because your return's DIF score is what triggers an audit.

However, I would think that arithmetic errors (such as you might make if doing the return by hand) probably do jack your DIF score.

Also, I think the diagnostics that tax software uses to assess your return probably knocks down many other errors that might jack your DIF score.

My (unsolicited) advice: Unless the return is very easy, I would think using TurboTax makes sense.

by **chaz** » Fri Sep 27, 2013 4:00 pm

SeattleCPA wrote:I don't know. Here's my guess though...

Completing a tax return by hand should not in and of itself increase the DIF score your tax return gets ... which important because your return's DIF score is what triggers an audit.

However, I would think that arithmetic errors (such as you might make if doing the return by hand) probably do jack your DIF score.

Also, I think the diagnostics that tax software uses to assess your return probably knocks down many other errors that might jack your DIF score.

My (unsolicited) advice: Unless the return is very easy, I would think using TurboTax makes sense.

TurboTax also makes it easy.

by **tadamsmar** » Fri Sep 27, 2013 4:05 pm

This says hand-written returns flags with the IRS because math errors are more likely:

http://www.minyanville.com/trading-and- ... 3/id/47474

But remember that there are lots of kinds of IRS audits. Just having the IRS run math checks is not a big deal, or even automated cross checks. They might mail you a letter if corrections have to be arranged. Not the kind were the make you prove every number from your records.

by **gtaylor** » Fri Sep 27, 2013 4:07 pm

I did it by hand for many years, up to the mid 2000's. Never audited, even with a Sched C etc.

I did on one occasion have unambiguous math errors. The IRS computer just fixes them as it goes and spits out a letter and a check or a bill. I suppose if the numbers are very screwy they would trigger something less automatic, and obviously they would have to if the input, as opposed to computed, values were inconsistent somehow.

by **Quickfoot** » Fri Sep 27, 2013 4:09 pm

TaxACT is considerably cheaper than TurboTax in most cases and does as good of a job. Unless someone lacks computer and Internet access or skills it's software makes it much easier.

by **frugaltype** » Fri Sep 27, 2013 5:16 pm

You mean hand filled out, not the form itself handwritten, I assume. Ive done mine thatt way for decades and never beenaidited. Sorry for typosudingtablet for first time.

by **bottlecap** » Fri Sep 27, 2013 5:19 pm

No. I have done it for years without incident. If they think you've miscalculated, they send you a notice, they don't audit you. If you omit something, that's another story...

JT

by **tomd37** » Fri Sep 27, 2013 5:43 pm

I would think the content of the tax return determines the audit possibility. Also, I believe all hand prepared returns are still data entered by an IRS clerk (probably a temporary worker) and that situation might add to a possible error and possibly an increased audit possibility. Anyone know for sure how a handwritten return is entered in the system?

by **nordlead** » Fri Sep 27, 2013 5:58 pm

I've heard that filing by paper increases your chances of audit due to increased chance of error. I doubt they use extra scrutiny. I also understand that paper submissions take longer to process. (Edit: I should say I doubt the rate of audit is higher if you take into account the higher rate of errors).

I personally use Turbo Tax (which does offer free federal) and pay for their service at it saves me time. They copy all of my forms from the previous year and all I have to do is enter the income/deductions(or whatever applies).

by **Steelersfan** » Fri Sep 27, 2013 6:12 pm

I did mine by hand for over 30 years without an audit. A lot of those years I had four or five forms, so not a simple return. I've done them the last five years with a PC program, and no audit.

I did make a math mistake on one of the hand written forms one year and got a notice from the IRS that I owed them a little money due to the mistake. I sent them a check, and that's the last I heard of it.

I think it's the numbers, their size and their accuracy that makes you audit prone, not what form you submit. When the IRS is deciding whether to audit you or not I'm pretty sure they're not looking at the form you submitted, but some electronic, internal version of it. And that's almost certainly after some computer program has screened it or selected it at random.

by **gks** » Fri Sep 27, 2013 6:32 pm

I made a mistake 15-20 years ago on a handwritten return. The IRS notified me of the mistake and adjusted our refund in our favor. Since then, I have been using Turbotax and Taxcut without any problems.

Greg

by **Spirit Rider** » Fri Sep 27, 2013 7:28 pm

The general point is that you want to avoid a human being "reviewing" your return. Missing or incorrect information will cause the computer to reject your return and route it for a review. However, the review we are talking about is a review of the total content of the return.

It just so happens that my company is involved in large scale document imaging projects. We do not have the IRS project, but this is likely how manual returns would be processed.

Paper returns are scanned and imaged. They will attempt to process them automatically by forms recognition and OCR. Printed forms from tax return software or the IRS fillable forms will get read automatically. I do not know if they attempt to do handprint recognition. It tends to have low accuracy rates. So assume some->all handwritten returns get data entered from the form image. However, do not consider this a "review". It is a data entry clerk, who only cares about typing in what's on line 22. There is nothing at this stage that will get your return audited.

As others have said it would only be if there were form errors, the information illegible, or the data entry process was incorrect, that your return would get flagged for review. However, the big advantage of using a preparation software is that in reconciles inter and intra form entries and applies all IRS regulations to those entries.

by **Grt2bOutdoors** » Fri Sep 27, 2013 7:34 pm

True story - years ago, colleagues of my parents claimed their "tax guy" would always get them refunds, whilst my parents were always paying because I was doing their taxes incorrectly. :annoyed

So, my folks took their taxes to get prepared by this yo-yo, well, long story short, their professionally prepared tax return was prepared long hand in very illegible scribble with all sorts of "made up deductions and credits" on "duplicate" paper. After reviewing their newly done taxes that they paid $150 for, I explained "calmly" :annoyed

that if they mailed in those tax returns they would with nearly 100% certainty be audited, and if that audit found any problems, the IRS could review past returns as well and it would likely cost them thousands. I wound up tossing the scribble and re-doing the taxes.

by **manwithnoname** » Fri Sep 27, 2013 8:43 pm

tadamsmar wrote:This says hand-written returns flags with the IRS because math errors are more likely:

http://www.minyanville.com/trading-and- ... 3/id/47474

But remember that there are lots of kinds of IRS audits. Just having the IRS run math checks is not a big deal, or even automated cross checks. They might mail you a letter if corrections have to be arranged. Not the kind were the make you prove every number from your records.

Of course H & R Block wants you to think that hand written returns are more likely to be audited then electronic returns because H & R block wants to prepare more tax returns and charge you for them.

However the math of audit risk for hand written returns does not compute. About 145M tax returns were filed last year and 80% were field electronically. That means 29M were either handwritten or filed out in PDF. IRS only audits about 1% of all returns (1.6M). So what percentage of hand written forms are audited. Maybe 1% because that is % of returns with income of no more than $200k that were audited. Audits can be for minor issues. 10 years ago I was audited because I failed to report an IRA rollover on the 1040. IRS taxed it as a distribution. I filled out the audit response form and included the 1099-R. IRS closed the file.

http://2012taxes.org/how-does-the-irs-c ... o-to-audit

by **Johm221122** » Fri Sep 27, 2013 9:03 pm

I have always done mine by hand, never had problem.
John

by **sharke** » Fri Sep 27, 2013 9:42 pm

gtaylor wrote:I did it by hand for many years, up to the mid 2000's. Never audited, even with a Sched C etc.

I did on one occasion have unambiguous math errors. The IRS computer just fixes them as it goes and spits out a letter and a check or a bill. I suppose if the numbers are very screwy they would trigger something less automatic, and obviously they would have to if the input, as opposed to computed, values were inconsistent somehow.

This was my experience as well. I finally switched to taxact (online) about two years ago and have been very pleased with it.

by **Toons** » Fri Sep 27, 2013 11:07 pm

chaz wrote:

SeattleCPA wrote:I don't know. Here's my guess though...

Completing a tax return by hand should not in and of itself increase the DIF score your tax return gets ... which important because your return's DIF score is what triggers an audit.

However, I would think that arithmetic errors (such as you might make if doing the return by hand) probably do jack your DIF score.

Also, I think the diagnostics that tax software uses to assess your return probably knocks down many other errors that might jack your DIF score.

My (unsolicited) advice: Unless the return is very easy, I would think using TurboTax makes sense.

TurboTax also makes it easy.

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Saturday, September 28, 2013

Is a hand-written Federal tax return an audit magnet?

Is a hand-written Federal tax return an audit magnet?

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Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

Re: Is a hand-written Federal tax return an audit magnet?

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