Three scores per project
The company-wide items (base amount, elections, state reconciliation, forms, entity, carryforward, registration) have their own federal and state scores.
- Federal: the project's federal questions.
- State: the project's state questions, where the state has a program.
- Combined: the two pooled together.
Seven risk areas
| Area | Questions |
|---|---|
| Qualification (four-part test) | F1, F2, F3 |
| Wage substantiation | F4, F5 |
| Contemporaneous documentation | F6, F7 |
| Contract research | F8 |
| Calculation and elections | F9, F10 |
| State nexus and apportionment | S1, S2, S5 |
| State filing and reconciliation | S3, S4, S6, S7 |
Bands
Scores fall into Low, Medium and High bands. A red-flag question rated Missing raises the band to at least High whatever the number, so a low score and a High band can appear together; the red flags page explains why.
What a score is not
Note.A score is not the probability of an audit and not an IRS or state decision. Two claims with the same score can have very different outcomes under examination.