Am I more likely to be audited if I e-file?

Answer: We don't know for sure, but some tax preparers think e-filing is the quickest route to an audit. The theory is that paper returns may sit on an IRS shelf longer. E-filing could increase your exposure to an audit because it's analyzed instantly for a discrepancy, whereas for manually written returns, less than half are put into this algorithm the IRS has for red flags.

Another argument in favor of filing through the mail goes like this: The more money the IRS saves from people e-filing - or the fewer clerks dealing with paper forms - the more money the agency has to hire new auditors. However, 73.3 million of the 135.7 million tax returns processed in 2005 were e-filed.

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