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.
Adjusted gross income (AGI) is a key figure for determining a personâs tax rate and eligibility for tax deductions under the U.S. Internal Revenue Code. On Internal Revenue Service (IRS) form 1040, taxpayers enter their gross income and subtract certain adjustments and tax deductions, resulting in adjusted gross income.