Tax Auditing

Tax auditing is the process by which tax authorities review an individual's or a business's financial records to ensure that they are accurately reporting income, expenses, and other relevant information on their tax returns. The purpose is to confirm compliance with tax laws and validate that the correct amount of tax has been paid. Audits can involve examining documents like receipts, bank statements, and tax filings. If discrepancies are found, the taxpayer may owe additional taxes, interest, or penalties. Essentially, tax auditing helps maintain fairness and accuracy in the taxation system.