Question: What are the chances that a particular return will be selected for audit? What generates a high DIF score? Even though most taxpayers try to
What are the chances that a particular return will be selected for audit?
What generates a high DIF score?
Even though most taxpayers try to comply with the rules, most also worry that their return may be audited by the IRS. Are these taxpayers worrying needlessly? The IRS picks returns for audit on the basis of a "DIF" score. "DIF" stands for "discriminant function" - a statistical technique that assigns a score to each individual return after it has been processed. The higher a return's DIF score, the higher the likelihood that it will be selected for audit.
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