A "DIF" score is a type of:
A) Fraud definition used by the Service.
B) Composite score which rates returns for potentially higher tax liability.
C) Negligent penalty score.
D) Score used for an information purpose in collateral agreements.

Question

Quizplus · Accepted Answer

A "DIF" score is a composite score used by the IRS to rate tax returns for potentially higher tax liability. DIF stands for "Discriminant Function System" score, and is used to identify returns for potential audit or review based on various criteria such as income level, deductions, and credits.

A "DIF" Score Is a Type Of