What is the formula which assigns numeric weights to certain (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

Quizplus · Accepted Answer

The formula which assigns numeric weights to certain (undisclosed by the IRS) return items, generating a composite score for the return is known as Discriminant function formula (DIF). This formula is used by the IRS to identify potentially fraudulent or erroneous returns for further examination.

What Is the Formula Which Assigns Numeric Weights to Certain