FBR Launches New Automated System to Detect Errors in Tax Returns

The Federal Board of Revenue (FBR) has initiated a comprehensive digital verification system for 2026 tax returns that will be electronically processed with automated electronic scrutiny. The Computerized Risk Management (CRM) system will be used to identify discrepancies in the facts or law and will be automatically alerted to them and inform the citizens before prosecuting. 

How the Automated Scrutiny of Tax Returns Works

The platform will automatically notify through IRIS portal notices system about the filings made under Section 120(2A) of the Income Tax Ordinance, 2001:

Initial Response Window: At least 7 days for taxpayers to explain differences flagged or adjust submissions.

Secondary reminder: If the first reminder is not received, the system will automatically send a reminder, which will give another seven days to respond.

Advance Officer Notices: Tax officials are also allowed to issue advance notifications about particular filing errors.

Officer Review and Compliance Tracking for Tax Returns

The flagged discrepancies, any notifications and taxpayer explanations are documented on a centralized monitoring system or dashboard available for the relevant Inland Revenue officer. After the period of reply, the officer checks the corrections received (or lack thereof) to decide whether any additional legal action shall be taken in accordance with the provisions of the Income Tax Ordinance. FBR is now implementing this automated data matching and electronic communication process with the help of a dedicated Change Request Form (CRF), thus enhancing transparency throughout the tax return system across the country. 

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