Multiple Extensions Not Risky

As I have discussed ad infinitum, there are several benefits to filing extensions and sending in the tax returns later than April 15. I just learned last night that there is someone claming that if you do this too many years in a row, IRS will take notice and target you for an audit.

I can state unequivocally that this just isn't true. I have scores of clients for whom we have been filing extensions every year for well over 20 years running. We have never experienced any IRS problems with any of these people. Likewise, I have never heard of this being a problem from anyone else. That sounds like one of those urban legends, such as the one that claims using the IRS provided label triggers audits. Not true.

Because of my heavy work schedule this time of year, there have only been a few times in the past 25 years that I have filed my own tax return by April 15. I have only been selected for audit by IRS twice, and neither had anything to do with the extensions. The first time was due to a vengeful ex-wife who was trying to extort money from me. The second one was a few years ago because of some hard hitting articles I wrote about the Clinton organized crime family in my newsletter.

KMK
- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 4/12/2002 05:20:00 PM Send this post: