What is the purpose of a tax audit?

The purpose of a tax audit is to verify the accuracy of a taxpayer's return. During an audit, tax authorities review the financial records and supporting documents of a taxpayer to ensure that the information reported is correct and complies with tax laws. This process helps to confirm that the taxes paid are based on accurate and truthful reporting. Audits can involve detailed examinations of income, expenses, deductions, and credits. The ultimate goal is to ensure that taxpayers are fulfilling their obligations accurately and that the amount of tax paid is fair, promoting integrity within the tax system.

Simplifying the tax filing process, assessing penalties on delinquent taxpayers, and correcting tax code ambiguities are not primary objectives of a tax audit, though they may relate to broader aspects of tax administration and compliance.