The Process
A book audit is an examination of business records by a tax inspector. It can be routine (random selection) or targeted (following information received). The inspector examines: matching between reported income and actual activity, expense documentation, inventory records, proper bookkeeping, and overall compliance. Deficiencies may lead to book disqualification and additional assessments.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.