Final answer:
The IRS DIF system does more than just check for mathematical errors; it is a scoring system to identify returns for potential review or audit due to inaccuracies, including mathematical mistakes or indications of tax evasion.
Step-by-step explanation:
It is false that the IRS DIF (Discriminant Information Function) system checks each tax return solely for mathematical mistakes and errors. The DIF system is a scoring system the IRS uses to identify tax returns that may potentially have inaccuracies, including but not limited to mathematical mistakes, as well as indications of underreported income or overstated deductions. Although part of the DIF's function is to check for errors, its primary purpose is to identify returns that may benefit from further review or an audit.
The subject of governmental tax enforcement through the DIF system relates to the duty of the Internal Revenue Service to collect taxes efficiently while minimizing tax evasion, or 'free riding,' which costs the U.S. Treasury significantly each year. The goal is to ensure compliance with the complex tax rules, which have certain exceptions based on individual circumstances.