Effect of Forensic Accounting Liability Analysis on Tax Fraud Detection in States' Internal Revenue Services of North Central Nigeria

Tax fraud detection continues to pose a significant challenge for State Internal Revenue Services (SIRS) in North Central Nigeria. This study explored the impact of forensic liability analysis on enhancing the detection of tax fraud, emphasizing the use of forensic accounting tools focused on liability assessment. A survey research design was adopted, and data were gathered from a census sample of 411 respondents. The simple regression analysis showed a statistically significant positive effect of forensic liability analysis on tax fraud detection, with a coefficient of 0.579 and a p-value of 0.000. The model’s R-squared value of 33.6% indicates that while forensic liability analysis explains a meaningful portion of the variation in fraud detection, additional factors remain influential. The findings underscore the critical role of forensic accounting in improving transparency and accountability within the tax system. Based on the results, it is recommended that SIRS establish and strengthen forensic liability analysis units, staffed with trained forensic accountants and supported by modern digital tools and complete access to taxpayer records. Ongoing professional development and the integration of forensic practices into routine tax audits should also be prioritized. Additionally, complementary measures such as taxpayer education, digital tax platforms, and real-time reporting should be explored to create a more robust and holistic fraud detection framework. Future studies are encouraged to include these variables and adopt longitudinal designs for a deeper understanding of trends over time.