tax audit

A tax audit is an examination of an individual’s or organization’s financial records and tax returns by tax authorities to ensure accuracy and compliance with tax laws. It verifies that income, deductions, and credits are reported correctly and identifies any discrepancies. Audits can be random or triggered by suspicious activity, errors, or inconsistencies. They may involve reviewing documents, conducting interviews, and inspecting assets. The goal is to ensure proper tax payments and adherence to regulations.