Best Practices in Tax Management
Someone sent me a link to “How to Audit-Proof Your Tax Return: Don’t e-File,” by Paul Caron. In it he quotes a plausible theory that “you are giving the IRS easy electronic access to information it would otherwise have to enter, enabling the agency to examine your return and mine the data more easily than it otherwise could.”
The article he’s quoting “Ten Ways To Audit Proof Your Tax Return” didn’t appear in some blog, it appeared in Forbes, and one might think they did some fact checking or something.
Now Paul is also credible. He’s Associate Dean of Faculty and Charles Hartsock Professor of Law at the University of Cincinnati College of Law. His blog asserts that it’s “the most-visited law-focused blog edited by a single law professor.” The Wall St Journal has called his blog a must-read. This isn’t some wacko.
I thought that was a neat idea, presented in a reputable magazine, backed by an apparent expert — a best practice, if you will — and sent it to my tax guy.
He wrote back:
One of my partners almost exclusively files on paper and his audit rate is no different than the rest of us who almost exclusively file electronically.
I love that my accountant is better than me at calling people on best practices. Thanks, Jeff!
(Yes, yes, to really test it, we’d want a larger sample, etc..)