Does An Extension Increase The Chance Of An Audit ?

No.

In fact, all things being equal, an extension may lower the chance of an audit.

Each year, the IRS is expected to perform a cetain quota of audits, and they begin the audit process as soon as tax returns are filed, in the early part of the year.

But if you wait until the October extension deadline to file, there is much less time remaining before the next year audit cycle begins. Also, the number of returns filed will be greater, so the probability of being randomly selected is lower.

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And if you're getting a refund, chances are even lower - especially for large refunds. However, most people like to get their refund as soon as possible, and tend to file earlier.

Of course, if your tax return has major red flags, it likely won't make any difference when you file.

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