IRS Minimum DIF Cutoff Score

4.1.1.3  (10-24-2006)
Minimum DIF Cutoff Score

  1. Each year, National Headquarters Examination establishes a National SB/SE DIF cutoff score for returns added to the DIF inventory. Returns with a DIF score higher than the minimum are added to the DIF inventory and may be ordered for classification.

4.1.1.3.1  (10-24-2006)
DIF Cutoff Score

  1. The PSP will calculate the Area DIF cutoff score for each activity code, giving consideration to the selection rate. This is the lowest DIF score necessary to secure the number of returns required for audit. For example, if the return plan shows 225 returns for an activity code and the selection rate is 70%, and the inventory report is as shown below, the Area will need to order 321 returns (225/70%). The DIF Cutoff Score is 500. The number of returns with DIF scores greater than 550 is 280, which is less than the number of returns required, so the lowest DIF score on an ordered return will be in the range of 500 to 550 and the DIF cutoff score is 500.

    Example:

    Inventory Report

    DIF Score Returns Cumulative Returns
    650 & UP 20 20
    600 50 70
    575 100 170
    550 110 280
    500 300 580
    450 350 930

4.1.1.3.2  (10-24-2006)
Use of DIF Cutoff Score for Return Orders

  1. The PSP Support Manager should monitor the inventory reports to ensure that Area-wide return orders do not result in the delivery of returns that are below the DIF cutoff score.

  2. For a POD Supplemental Order, the PSP may order returns below the DIF cutoff score provided the total ordered does not exceed 110% of the returns above the cutoff score, i.e., not more than 10% of the returns ordered for any POD should be below the DIF cutoff score.

  3. Every available means to supply workload above the cutoff score in each activity code will be exhausted before a request is submitted to order returns below the cutoff score. For example, for a POD, if the geographical Area permits, select returns from excess workload of a contiguous POD within the Area.


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