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10 Tax Refund Myths

        Money | Taxes

1
The peel-off label on my return flags my return for audit

In spite of what your friends might tell you, the peel-off label on your tax return instruction book doesn't contain personal information about you or details about the suspicious deductions you claimed on last year's return. It isn't a way to trace your return and it doesn't red flag your return for an IRS audit.

What the label does contain is coding information regarding mail routes and the forms you used in the past. Failure to use the envelope or label the IRS provides will only delay your return. As innocent as it may sound, the purpose of the label is actually just to speed up your refund [source: Payne].

These are just some of the refund myths you might hear this tax season. While you also might receive some good advice from your friends and associates, double-check anything they tell you and don't believe everything you hear.