Tax Audit Procedures

Tax audit procedures involve a systematic review of an individual’s or business's financial records by tax authorities to ensure compliance with tax laws. The process typically begins with the selection of returns for audit based on specific criteria. Auditors examine income, expenses, and deductions, often requesting additional documentation. Interviews may be conducted, and discrepancies can lead to corrections or penalties. The goal is to verify accuracy and fairness in reported income and taxes owed, ensuring that taxpayers comply with legal obligations while protecting the integrity of the tax system.