Tag Archives: tax audit

Has Hell Frozen Over?

August 23, 2016 Roy A. Ackerman, Ph.D., E.A. 3 Comments

A new day may be dawning. Or not.

Most of you know that I work with a slew of folks and companies to help them pay the lowest amount of taxes required by law. No cheating, no subterfuge- just availing themselves of all the laws that afford folks to pay their taxes- but only the amount they owe, not some number that is afforded by plugging in numbers to TurboTax, H&R Block, TaxAct, etc.

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What’s the DIF?

July 12, 2016 Roy A. Ackerman, Ph.D., E.A. 5 Comments

I’ve mentioned (even as recently as yesterday) that the IRS has sophisticated processes to determine who needs to be audited. The algorithms are called DIF and UI DIF. While the IRS explains how and why it does what it does (Publication 556) , the actual formulae are never shared with anyone. Because they would be invitations to cheat- knowing how to tweak the numbers to avoid an audit.

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