Of considerable aid to the IRS in collecting revenue are the numerous provisions that impose interest and penalties on taxpayers for noncompliance with the tax law. \ True\ b. The IRS has also been granted the authority to allocate income and deductions among businesses owned or controlled by the same interests when the allocation is necessary to prevent the evasion of taxes or to reflect the income of each business clearly. \ c. The IRS may not make adjustments based upon the substance rather than the formal construction of what a taxpayer has done. \ d. One of the keys to the effective administration of our tax system is the audit process conducted by the IRS.