Question

The program that is designed to furnish the IRS with statistics concerning the type and number of errors that are made on a representative sample of individual income tax returns is the:

a. Unallowable Items Program
b. Mathematical/clerical Error Program
c. National Research Program
d. Discriminant Function Program

Answer 1

The correct answer to the student's question regarding the IRS program that provides statistics about errors on income tax returns is the National Research Program (NRP). This program collects and analyzes data to help the IRS understand compliance rates and identify areas where taxpayers make errors.

Step-by-step explanation:

The program designed to provide the IRS with statistics concerning the type and number of errors found on individual income tax returns is the c. National Research Program (NRP).

Understanding the IRS Programs

• The Unallowable Items Program identifies items that may not be allowable under the tax code.
• The Mathematical/Clerical Error Program focuses on math or clerical mistakes on tax returns.
• The National Research Program (NRP) collects data for statistical purposes and compliance research.
• The Discriminant Function Program uses a scoring system to select returns for possible audits.