20:59
got a random stanford email and almost had a heart attack
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
tax auditor
Read a random definition: Table 1: Overarching Anti-Spam Frameworks in the United States, Canada, and the European Union
A quick definition of tax auditor:
A tax auditor is a person who checks financial records to make sure they follow the rules about taxes. They look at records for individuals, companies, and organizations to see if they are following federal, state, and local tax laws. Tax auditors help companies with their tax returns and make reports about what they find. There are different types of tax auditors, like those who work for a company, those who work for the government, and those who are hired by a company to check their records.
A more thorough explanation:
A tax auditor is a financial professional who specializes in taxes and evaluates financial records to determine whether they comply with applicable laws and regulations.
Tax auditors examine companies, individuals, institutions, and organizations for compliance with federal, state, and local tax laws. They apply accounting principles to conduct internal audits, analyze and evaluate accounting systems and tax control units to reduce taxes, maintain required tax documentation, assist companies with tax returns, and prepare tax audit reports.
Tax auditors are classified as internal, external, or government auditors.
- Internal auditors are hired to conduct audits of companies and help identify fraud, tax errors, and mismanagement of funds.
- External auditors are impartial third parties who help clients file tax forms.
- Government auditors are hired by the Internal Revenue Service (IRS) to conduct random audits of companies, especially those suspected of tax fraud or evasion.
For example, an internal tax auditor may be hired by a company to ensure that the company is complying with tax regulations and to identify any potential tax errors or fraud. An external tax auditor may be hired by an individual or business to help them file their tax forms accurately. A government tax auditor may conduct a random audit of a company suspected of tax fraud or evasion.