What is the tax audit from hell, its called the “Taxpayer Compliance Measurement Program” (TCMP)

This is a four letter word tax audit.

Taxpayer Compliance Measurement Program (TCMP) Audit.

The primary purpose of this type audit is to update the data for the IRS’ DIF scores.

The DIF score is the major tool IRS uses to score tax returns for IRS tax audits. of the over 350,000 tax audits that IRS conducts every year this tool is used to score thousands and thousands of tax returns.

DIF scores are developed from analyzing a large group (involving up to 10,000 – 50,000 randomly selected returns) of intensive audits, conducted every few years.

In a TCMP audit, the IRS will analyze every item on the tax return and every part of the return must be substantiated by documentation. A standard audit is time consuming in that a taxpayer must find checks, invoices, contracts, bank statements, etc. for the items selected for audit.

That’s right IRS goes through any number that’s put down on a tax return must be substantiated including birth certificates for children.If you have a simple tax return you’re not going to have a problem but if you have a business, corporation or partnership they are going to be your worst nightmare.

Remember TCMP is a four letter word so be prepared.