Will Time You File Your Return Impact Your Chances of Being Audited?

Some tax experts contend that you should request maximum extension allowed for filing your return, arguing that your chances of an audit are reduced, because IRS field agents will have time to conduct the audit. Other tax experts claim that you are better off filing on April 15, because that way you get lost in the crowd. Both theories are oversimplifications of IRS procedures.

If you do lean toward the first theory, you should keep in mind that an extension of time to file is not an extension to pay your taxes. Moreover, your extension will not be valid if it does not show a “proper” estimate of tax liability. A proper estimate is based on all the facts and information you have at the time of filing. If your estimate is found to be improper, your extension will be invalid and you will be subject to failure-to-file penalties.