Does a Tax Extension Increase Your Chances of an Audit?

If someone says, audit the word "tax extension" for you, you automatically think "?"

Perhaps it is time to think again. No one outside the IRS knows for sure how the audit system really works (our money) to trained hamsters, but many believe that the tax extensions CPAs actually decrease your chances of an audit.

Why, you ask? Many believe that IRS officers have an audit rates, and they begin to> Tax Time. Many accountants hypothesis that the odds well before the tax extension of the deadline of 15 October (15 September for business taxes to get stuffed), and IRS agents have less incentive to return to place in the test batch.

There is some debate as to whether this is true, but filing a tax extension is certainly not the individual you for unfavorable treatment. About 10 million (from 140 million euros) taxpayers filed tax extension last year.Half of all U.S. companies, it was.

Hate Is My IRS Tax Extension?

It is generally assumed that the IRS generally frowns on tests, the forehead, and is treated less favorably on the likely returns. If that were the case, but why should they offer an automatic extension for six months to everyone who files any questions? In addition, through the filing for an extension that you are indeed proof of compliance with IRS rules. Think of all thePeople who are just file late without notifying the IRS at all!

Moreover, it is quite likely that would make IRS agents, just like you and your accountant, not less tax in March and April. Both accountants and agents get overwhelmed during the tax season, and the possibility of human error (which can trigger an audit), is upwards. There is no reason to give, not all a little break and a control file for the extension this year.