Why are non-compliance findings categorized by severity levels?

• A. To decide enforcement actions
• B. To improve paperwork
• C. To inform taxpayers about penalties
• D. To assign case numbers

Answer: (A)

Severity levels are used to determine enforcement actions. When non-compliance is found, the level of severity signals how serious the issue is and what response fits best. A minor discrepancy might be addressed with a corrective notice or reminder, while a major violation could lead to penalties, interest, or further enforcement measures. This approach keeps responses consistent and proportional, and helps allocate resources to the most significant risks. It also serves as a deterrent, showing that higher-severity findings carry stronger consequences. The other options miss the main purpose: improving paperwork, informing taxpayers about penalties, or simply assigning case numbers are administrative or informational tasks, not the reason for categorizing findings by severity.