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.
The term âmodified adjusted gross. incomeâ is defined as the adjusted gross income increased by (i) any amount excluded. from gross income under section 911, and (ii) any amount of interest received or accrued. by the taxpayer during the taxable year which is exempt from tax. Section 36B of the.