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.
Which explains a difference between income and taxable income? Income is what a person earns, while taxable income reflects deductions for various expenses. Income is what a person earns, while taxable income reflects what is left after paying federal taxes. Income is what a person earns, while taxable income reflects what is left after paying local and state taxes. Income is what a person earns, while taxable income reflects what is received from the IRS in a tax refund.