IRS Examination vs Auditing

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Originally Posted by FRPLG

Ah...didn't mention an extension. You're return probably gets a good look if you've filed an extension and they end up owing you money.

Well I have never had an audit in the past 14 years sense I have been in business. My Taxes stay pretty cosistent from one year to the next so they never really throw up any red flags. I file an extension every year as he has to complete my corp. taxes before they can even start on my personal taxes. Not sure if its true or not but my CPA says that the IRS has to do so many audits and by filing an extension the chances become less likley to get audited as they have allready hit their numbers. That could also be a bunch of BS but so far it seems to work.