Automated Underreporter (AUR) Program

Definition

An IRS compliance program that uses computers to automatically compare income figures reported on a taxpayer's filed return against third-party information statements such as W-2s and 1099s. When a discrepancy is detected, the IRS issues a CP2000 notice proposing an adjustment to the taxpayer's reported income or tax liability. The program processes roughly 2 million notices per year and does not automatically account for offsetting deductions or cost basis.