Question

A taxpayer's return is classified for audit after receiving a high DIF score and being manually screened by an IRS classifier. Which of the following statements best describes whether the taxpayer will be contacted by an auditor or revenue agent:

a. Yes, the taxpayer will be contacted since a high DIF score always will mean some type of audit.
b. Yes, the taxpayer will be contacted because only the National Office has the power to decide that after screening the return need not be audited.
c. No, the taxpayer will not necessarily be contacted since after the Service Center review, it may be decided that an audit is unwarranted.
d. No, the taxpayer will not necessarily be contacted by an auditor or revenue a agent since after the return is screened by the Service Center, it then is randomly selected for audit.

Answer 1

No, the taxpayer will not necessarily be contacted since after the Service Center review, it may be decided that an audit is unwarranted.

Step-by-step explanation:

The correct answer is c. No, the taxpayer will not necessarily be contacted since after the Service Center review, it may be decided that an audit is unwarranted.

A high DIF (Discriminant Function) score is one factor that the IRS uses to determine the likelihood of a taxpayer's return being audited. However, it does not guarantee that the taxpayer will be contacted by an auditor or revenue agent.

After receiving a high DIF score, the taxpayer's return undergoes manual screening by an IRS classifier. The classifier then decides whether an audit is necessary based on various factors, not just the DIF score. If the classifier determines that an audit is unwarranted, the taxpayer may not be contacted by an auditor or revenue agent.