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.
However, some may not be taxed. Taxable income is income that is taxed, or income in which personal exemptions and deductions are taken out, and includes: 1  wages, salaries, tips, bonuses, vacation pay, severance pay, commissions. 2  interest and dividends. 3  certain types of disability payments. 4  unemployment compensation. 5  jury pay and election worker pay.