WebFirst, they tell us there is a computer scoring system called “Discriminant Inventory Function System” (DIF). This system looks at your return and compares your return to similar returns to come up with a score for your return; the higher your score, the more likely an audit will yield a tax change. WebDiscriminant Function System (DIF) score rates the potential for change, based on past IRS experience with similar returns. The Unreported Income DIF (UIDIF) score rates the return …

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WebJul 25, 2012 · One audit source is the Discriminant Index Function (DIF) system, which the IRS has relied on over the years to help decide how to best allocate its audit resources. It … WebA discriminant function is a method used by the IRS to select tax returns for auditing. The process involves using a computer program to identify returns that have a high probability of errors, such as those with a disproportionate amount of deductible expenses. The selected returns are then manually reviewed by examiners to determine which ones should be … how to screenshot on samsung a40

The Discriminant Analysis Used by the IRS to Predict …

WebApr 12, 2024 · A return can be selected for audit via the IRS’ computer-scoring system known as Discriminant Information Function, or DIF. The DIF looks at deductions, credits and exemptions, with norms... WebThe IRS currently uses the discriminant function to give all individual tax returns two scores; one based on whether it should be audited or not and one based on if the return is likely to … WebFeb 24, 2024 · The IRS has several different computer systems that do various types of analysis on returns that do statistical analysis to score tax returns based on their … how to screenshot on samsung a22 5g