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.
Two Methods: Determine Adjusted Gross Income for the Year Calculate Federal Taxable Income and Tax. To calculate federal income tax, you need to first estimate your adjusted gross income (AGI). Then, estimated taxable income is determined by subtracting allowable deductions and exemptions from AGI.