IRS audit

Random IRS audit

Random IRS audit is a part of how the IRS selects tax returns to audit. In addition to using the DIF score system, the IRS matching program, and informant tips, the IRS also conducts a random IRS audit on various tax returns to determine which tax returns the IRS will conduct IRS audit.

Threat of the IRS random audit

The IRS has always relied on the threat of conducting random IRS audits to encourage tax payers to voluntarily comply with the IRS tax laws. The IRS reasons that if a tax payer believes that his or her tax return will be selected for random audit, then the tax payer will be more likely to file correct tax returns.

While there is no way to avoid a random IRS audit if a tax return is filed, the odds that an IRS audit will result from truly random selection are statistically very small. In another word, the chances of a random IRS audit are small.

National research program (NRP)

The IRS also conducts IRS audits from its national research program (NRP) tax compliance audits. These National research program (NRP) IRS audits are much more intrusive than a regular IRS audit in that the IRS will be using these IRS audits to gather statistical information to update its computer system for DIF score purposes.