What is the formula that assigns numeric weights tocertain (undisclosed by the IRS)return items, generating a composite score for the return?
A)selection of returns formula
B)unallowable items formula
C)discriminant function formula (DIF)
D)mathematical errors formula

Question

What is the formula that assigns numeric weights tocertain (undisclosed by the IRS)return items, generating a composite score for the return?
A)selection of returns formula
B)unallowable items formula
C)discriminant function formula (DIF)
D)mathematical errors formula

Quizplus · Accepted Answer

The discriminant function formula (DIF) is used by the IRS to assign numeric weights to certain return items, generating a composite score for the return to help in identifying which returns are most likely to be non-compliant.

What Is the Formula That Assigns Numeric Weights Tocertain (Undisclosed by the IRS)return