Tax Audit Assistance

While filing for a tax extension can provide some relief, it's important to address a common concern: Does filing an extension increase the chance of an IRS audit? Understanding Tax Extensions:A tax extension is a formal request to the Internal Revenue Service (IRS) for additional time to file your income tax return. Conclusion:In conclusion, filing an extension does not increase your chances of an IRS audit. Audits are conducted based on specific criteria and red flags, not on whether you've requested an extension. Consulting with a tax audit specialist can also provide valuable guidance and expertise in navigating the complexities of the tax system while reducing the likelihood of an audit.

The Compulsory Tax Audit RegimeThe compulsory tax audit regime, introduced in 1984, was inserted by Section 44AB in the Income-Tax Act, 1961, coming into effect on April 1, 1985. Prior to 1985, the account maintained only by companies and cooperative societies were required to be audited as per the Companies Act. In 1988, the Council of ICAI issued a notification prohibiting members from accepting more than a specified number of tax audit assignments u/s 44AB of the Income Tax Act per financial year. The Chartered Accountants Act, 1949 was amended by the Parliament in the year 2006, which superseded the notification by the Guidelines of August 8, 2008.  My current company is Tax Gyata where I am practicing CA GST, Income Tax work of company and cooperates.