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.
Since those with higher taxable incomes pay a higher percentage, the Federal income tax is a progressive tax. Sales and excise taxes, by comparison, are considered regressive. Since the goods get taxed at the same percentage, those with lower incomes pay a larger percentage of their income in sales and excise taxes.