If I file for an extension, will I automatically get audited? Or does it increase my chances of being audited?
This one falls under urban myth status, and no, your extension is not a trigger for an audit.
Most people have heard this, and many have repeated it as a "fact", but it's not a fact at all. So will you get your taxes in tomorrow for the deadline? Or do you need an extension?
VerifyThis did an article last week on this topic, and you can read through their coverage to see that no, it's not the trigger for an audit. And in fact about 1 out of every 10 people get an extension each year.
And as they say in their story, do the right thing, follow the steps, don't try to be tricky or smarter than and you should be just fine.
Read their in depth look at the topic at: No, filing a tax extension doesn’t increase your risk of being audited
Link to the article: https://www.verifythis.com/article/news/verify/taxes-verify/tax-extension-doesnt-increase-audit-risk/536-81360507-8793-41b0-838c-ce369b8282a1
What kind of things do you think might trigger an Audit of your return?
I think it's fair to say no one wants to go through one, but do we know what types of things tend to cause a closer look? Crypto is probably on your list, and it was on the list the Wall Street Journal put out last week too. What about being a W2 employee, working from home, and claiming a workspace; was that on your list?
Read through 10 Red Flags That Could Trigger an IRS Tax Audit in 2022 they addressed this past week.
And remember when in doubt seek the advice of a tax professional.
Link to the article: