An examiner may require the immediate production of records. Make sure your companyâs data storage and networking infrastructure is up to date. Prepare for unannounced compliance audit by obtaining a copy of an inspection checklist from a specific regulatory or governing agency. Compliance is a multifaceted and complex matter.
Federal taxable income is the adjusted gross income less the deduction for personal exemptions and itemized deductions, which include items such as home mortgage interest, property taxes and charitable donations. Taxable income is the figure used to determine the actual taxes due.
Your adjusted gross income, or AGI, is your total taxable income for the year minus certain expenses. Only adjustments to income, also known as above-the-line deductions, decrease your AGI. Other items that reduce your taxable income, such as exemptions and itemized deductions, do not reduce your AGI. Reducing your AGI can help you qualify for additional income tax deductions.