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.
Earned income, gross income, adjusted gross income and modified adjusted gross income provide the foundation for tax preparation and filing. The difference between earned income and gross income is an important distinction that you should be prepared to use correctly in your tax accounting.RELATED FAQS.n addition to the specific items listed under earned income, your gross income also includes investment income in the form of interest and dividends as well as your retirement income derived from retirement account withdrawals.