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.
So what is taxable income? Basically, it's your total, gross income minus allowable personal exemptions and deductions. The individual tax forms -- 1040EZ, 1040A or 1040 -- act as filters here to help you to reach the smallest taxable income level.