2319 N Andrews Avenue Ft. Lauderdale, FL 33311 (800) 382-1040 rmsaccounting.com Will Your Tax Return Be Audited? Few things are more unnerving than having your tax return selected for an IRS audit. The IRS uses that "audit anxiety" to help keep taxpayers honest. Audit anxiety is an important part of our voluntary compliance system. • The TCMP Audit What determines whose returns will be picked for audit? A certain number of unlucky taxpayers will be picked simply to help the IRS gather statistics. The "TCMP" audit (Taxpayer Compliance Measurement Program) is probably the most exacting audit. These are sometimes referred to as the audits from hell. The taxpayer is required to substantiate every number on his or her tax return. The results from these audits are used by the IRS to compile statistical information that can be used for other audit purposes. These statistical audits have been suspended until further notice, but they could be reinstated at any time. • DIF Scores Count Apart from the TCMP program, your return will be evaluated based on your "DIF" score, a set of IRS formulas known as the "Discriminate Function System." About three-quarters of all returns audited are selected by the DIF computer, which compares deductions, credits, and exemptions with the norms for taxpayers in each income bracket. While these formulas are kept very secret by the IRS, you can count on having a higher audit probability if you fall into certain ...