「report tax returns」A computer system that helps the IRS check taxes
Time： 2023-03-09 16:01
Discriminant Inventory Function System (DIF) is the tax supervision system of the Internal Revenue Service IRS. If the taxpayer's tax declaration has fraud such as income concealment, tax evasion, tax evasion, etc., it will be marked by the DIF and automatically send an IRS notification letter.
Concealing income, not making tax returns, and the company has running water but has zero returns all year round will be judged as the category of tax fraud!
If the wrong SSN number is inadvertently entered during tax declaration, resulting in the change of the taxpayer's information, it will cause a DIF warning and face a comprehensive audit!
DIF can automatically analyze and compare the information of tax returns (such as the profit level and expenditure level of companies of the same type in the industry), as well as integrate the third-party information (banks, employers, brokers, suppliers, customers), and list a risk coefficient score for each tax return.
The higher the score, the greater the probability of being audited by tax, and the IRS letter will be sent to the taxpayer automatically.
When transferring funds, both individual and enterprise payers should report relevant information to the IRS and payee. Different types of income of taxpayers will be reported in different forms
So it is easy to know whether taxpayers have concealed their income.
How can we avoid being marked by the DIF system?
The tax declaration season should be prepared in advance. When the tax situation of an individual or company is relatively complex, it is necessary to check again after all the tax declaration materials are prepared. If necessary, you can seek the assistance of a professional organization.