WHAT ARE THE FEDERAL TAX ADMINISTRATORS DOING?

THE IRS IS INCREASING ITS AUDIT CAPACITY. A CAREFUL SELECTION OF RETURNS FOR AUDIT IS MADE USING THE DISCRIMINANT FUNCTION, WHICH IS A MECHANICAL TECHNIQUE IN WHICH COMPUTERS SCREEN RETURNS, PERFORM A NUMBER OF CALCULATIONS AND IDENTIFY THE RETURNS WITH A HIGH PROBABILITY OF ERROR. AUDITORS THEN SEL...

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Bibliographic Details
Published in:National tax journal 1974-09, Vol.27 (3), p.413-417
Main Author: ALEXANDER, DONALD C.
Format: Article
Language:English
Subjects:
Adjusted gross income
Auditing procedures
Audits
Business audits
Compliance
Computer audits
Computers
Corporations
Federal taxes
Income taxes
Internal audits
Planning
Tax audits
Tax shelters
Taxes
Taxpaying
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Summary:THE IRS IS INCREASING ITS AUDIT CAPACITY. A CAREFUL SELECTION OF RETURNS FOR AUDIT IS MADE USING THE DISCRIMINANT FUNCTION, WHICH IS A MECHANICAL TECHNIQUE IN WHICH COMPUTERS SCREEN RETURNS, PERFORM A NUMBER OF CALCULATIONS AND IDENTIFY THE RETURNS WITH A HIGH PROBABILITY OF ERROR. AUDITORS THEN SELECT FROM THESE RETURNS THE ONES TO BE SUBJECTED TO AN AUDIT. OTHER METHODS FOR SELECTING RETURNS FOR AUDIT ARE THE AUTOMATIC SELECTION SYSTEM, MANUALLY, STATISTICAL SAMPLING AND THE DEVELOPMENTAL COMPUTER AUDIT PROGRAM. ALL OF THESE ARE CONTINUOUSLY PERFECTED IN ORDER TO MAINTAIN A FAIR, COMPREHENSIVE AND UNIFORM AUDIT PROCEDURE.
ISSN:0028-0283
1944-7477
DOI:10.1086/NTJ41861966