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. Your adjusted gross income (AGI) is your gross income minus any adjustments to income. It is the adjusted gross income line on your federal income tax return. Note: This is the amount on Form 1040, line 37, Form 1040A line 21 or Form 1040EZ, line 4.