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anyone with an opinion.
is there less chance of being audited filing in the thick of things, say 4-10 vs 3/1?

TIA
susan
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I don't think it matters. Auditing determination is made considerably after the return is processed. It's not something that happens at the time you file.

joe
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anyone with an opinion.
is there less chance of being audited filing in the thick of things, say 4-10 vs 3/1?


Filing date has no effect on audit likelihood (at least for returns filed timely). Document matching doesn't begin for several months because issuers of tax documents (W-2s, 1099s, etc.) have additional time to submit their documents to the IRS (eg., e-filed W-2s aren't due until April 2). The initial selection of returns for audit is done by computer and the computers don't care how many returns they have to process.

Ira
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This has probably changed, but if you filed after 4/15 (4/17 this year) your chances for audit were less. This was because the IRS ran it's DIF score on returns filed by 4/15. Dif was the way they selected audit candidates. Returns after 4/15 were only checked to fill in gaps after 4/15.
There has been much written about this, so it probably been changed.
http://www.filelater.com/tax-extension-audit.html
CB
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This has probably changed, but if you filed after 4/15 (4/17 this year) your chances for audit were less. This was because the IRS ran it's DIF score on returns filed by 4/15.

I've never heard this before, and I've never heard of audits starting up immediately after the close of filing season. But then, I've never spent much time at sites that charge you $20 to get an extension, which you can do for free in less than 5 minutes directly.

What's on your return has a lot more to do with the chance of an audit than when you file it.

Phil
Rule Your Retirement Home Fool
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This has probably changed, but if you filed after 4/15 (4/17 this year) your chances for audit were less. This was because the IRS ran it's DIF score on returns filed by 4/15. Dif was the way they selected audit candidates. Returns after 4/15 were only checked to fill in gaps after 4/15.
There has been much written about this, so it probably been changed.
http://www.filelater.com/tax-extension-audit.html


Lots of people believe lots of folklore and myths with no empirical evidence to support their beliefs. Other than CP2000 notices (automated document matching), I've never seen an audit notice earlier than 9 months after filing, and more typically, they arrive 12-18 months after the unextended filing deadline. I highly doubt the filing date has any effect on audit chances.

Ira
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I don't believe that a CP2000 is considered an audit.
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I don't believe that a CP2000 is considered an audit.

The CP 2000 process is an audit, with all the applicable appeal procedures. Perhaps you're thinking of those things that can, under the law, be processed as math errors without any audit formalities. Although no longer applicable, advance payment of the EIC was one such. There are others.

Phil
Rule Your Retirement Home Fool
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A CP2000 is a matching tool, not an audit. It just matches reported income with your return and asks you to explain the difference.
You can still be audited after a CP2000. A "correspondence" audit will ask for invoices, cotribution receipts etc. An office audit and a field audit get much more complicated.
http://www.irs.gov/businesses/small/article/0,,id=219552,00....
http://www.irs.gov/individuals/article/0,,id=136857,00.html
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A CP2000 is a matching tool, not an audit. It just matches reported income with your return and asks you to explain the difference.
You can still be audited after a CP2000. A "correspondence" audit will ask for invoices, cotribution receipts etc. An office audit and a field audit get much more complicated.
http://www.irs.gov/businesses/small/article/0,,id=219552,00....
http://www.irs.gov/individuals/article/0,,id=136857,00.html


Nothing in either of those two references suggests that a CP 2000 notice is not an audit. Failure to respond to the notice leads directly to a Statutory Notice of Deficiency.

Ira
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But you can be audited after a cp2000.
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But you can be audited after a cp2000.

So what? You can be audited after what you would call an audit. It's rare and legally restricted, but nothing prohibits it.

You'll find on overview of the process here: http://www.irs.gov/irm/part4/irm_04-019-003r.html#d0e1050

(Automated Underreporter (AUR) is the official name for the CP-2000 process.) Note that it's part of the overall examination process. Note also that there's a decision point, human or computer, at which the case is sent either to AUR or for more intensive personal examination by correspondece, office or field examination.

As Ira has noted, you have full appeal rights, including petition to Tax Court, in the CP-2000 process. By my book, if it looks like an audit, acts like an audit, smells like an audit, it's close enough to call it a duck. YMMV.

The legal key here is the issuance of a notice of deficiency, a/k/a a 90 day letter. The governing statute is IRC 6212. You'll note that if a 90 day letter is issued in a CP-2000 case the same prohibition on further issuances applies that would apply had a revenue agent moved in with you for a year.

BTW, we're all dating ourselves. The IRS calls audits "examinations" nowadays. Sounds so much classier, doncha think?

Phil
Rule Your Retirement Home Fool
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