Extensions have several advantages: They reduce your chances of being audited. Reason: Tax returns filed earlier are scored by the IRS computer for audit potential to be first shipped out to the District office in the first batch. On the other hand, extended returns are scored later and may never find their way to the second batch slated for audit. (This is a huge advantage as audits can be a drain of your time and money).

Extensions extend the time in 2010 to make contributions to certain retirement plans for a 2009 plan deduction.

For example, qualified and Simple plans must be opened before December 31 of the current year to secure deductions for that year. But once they are opened, contributions can be made up to October 15, 2010 for a 2009 1040 deduction.