Tax Audit

A tax audit is a detailed examination of a taxpayer’s financial records, transactions, and compliance with tax laws conducted by tax authorities to ensure accuracy and adherence to tax regulations. The audit aims to verify the completeness and accuracy of the information provided in tax returns and financial statements. Tax auditors typically scrutinize income, expenses, deductions, and credits claimed by the taxpayer to assess the proper calculation of tax liability. The process may also involve a review of supporting documentation, such as invoices, receipts, and relevant financial records. The primary goal of a tax audit is to identify any discrepancies, errors, or potential tax evasion, ultimately ensuring that taxpayers pay the correct amount of taxes owed in accordance with the applicable tax laws. Depending on the findings, adjustments may be made, penalties may be imposed, or further legal actions may be taken by tax authorities.