It's pretty simple and the procedure is the same for all Wranglers. The transfer case must be in Neutral, the transmission must be IN gear (yes, NOT neutral), and the ignition lock must be unlocked so the wheels can turn left/right to follow you. Just unlock the ignition with the key, don't turn it to 'On' which will drain the battery.
So if you have an automatic transmission, it must be in Park. If it's a manual transmission, it must be in gear... not Neutral. The reason for this is that the transmission does not have an oil pump that works when being flat towed so the transmission must be prevented from turning when not being lubricated. The transfer case has an oil pump that works via the rear driveshaft so it can be in Neutral.
No rumor, right out of the Owner's Manual.