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.
Your adjusted gross income. Your adjusted gross income (AGI) is equal to your gross income, minus any eligible deductions that you may qualify for. These deductions or âadjustmentsâ to your gross income are specific expenses the IRS allows you to take that reduce your gross income to arrive at your AGI.