Which of the Following Statements About the DIF Score Is

question 29

Multiple Choice

Which of the following statements about the DIF score is true?

• A) Details of the DIF score computation are available on the IRS website.
• B) The lower the DIF score assigned to a tax return, the higher the probability that the return will be selected for audit.
• C) Theoretically, the DIF score measures a tax return's potential for generating additional revenue on audit.
• D) Taxpayers can contact the IRS to determine their DIF score before filing their annual tax return.

---

Definitions:

Negotiable

Pertain to something that is open to discussion or modification, especially concerning terms of an agreement or contract.

Legal Rate

The interest rate established by law that can be charged for borrowing money or the rate at which interest can be paid on a legal judgment.

Specific Rate

A particular or fixed rate that applies to a specific condition or circumstance, often used in finance and taxation.

Negotiable

Capable of being discussed and altered or the property of an instrument (like a check) to be legally transferable to another person.