Tyrone claimed a large amount of charitable contributions as a tax deduction relative to taxpayers with similar levels of income.If Tyrone's tax return is chosen for audit because of his large charitable contributions,which audit program likely identified Tyrone's tax return for audit?

Question

Quizplus · Accepted Answer

The DIF (Discriminant Function) System is used by the IRS to identify tax returns that are statistically more likely to be incorrect or fraudulent. It uses a computer program to assign a numerical score to each tax return based on the taxpayer's characteristics and compares the score to those of similar taxpayers. Large charitable contributions relative to income is one of the factors that can trigger a higher DIF score and increase the likelihood of an audit.

Tyrone Claimed a Large Amount of Charitable Contributions as a Tax