Does Filing Time Affect Tax Audits

Thursday, September 5, 2013

If you file an extension (before April 15) to file your federal income tax return and file it before the deadline on October 15, most likely this will not increase your chances for getting audited by the Internal Revenue Service (IRS) of the United States. Filing an extension does not have an impact on your chances of getting audited.

Tax experts and best tax attorneys confirm that filing in April or October will not change your chances of being audited. However, it is important to still file on time. It may be true that filing a late tax return will trigger the attention of the tax officials at the IRS. Therefore, it is not recommended to miss the October 15 due date, if you have filed an extension.

In general, approximately 1% of all taxpayers who submit their taxes will be audited

Most times, the audits, known as correspondence audits, tend to occur if you report something on your tax return that is different from the documents that IRS receives from your employers, investments, etc.  If this is the case, you will need to provide the IRS with supporting documents via mail.  However, if the tax return flags the attention of the IRS causing a correspondence audit, it would not matter when you file your taxes. With technology today, the IRS has computers that screen each tax audit to score returns based on a mathematical formulas meant to identify whether your actual information matches what you report. 

Although some people believe that filing at or near a deadline on April 15 reduces your tax audit risk, that is not actually the case.