What must taxpayers provide when submitting an audit?

When taxpayers submit to an audit, it is essential to provide evidence of all income sources. This documentation is crucial because the IRS or the tax authority conducting the audit needs to verify that the income reported on the tax return is accurate and complete. Income can come from various sources such as wages, investment income, rental income, and self-employment earnings, all of which should be substantiated with appropriate records, such as pay stubs, bank statements, 1099 forms, and other relevant documents.

Providing comprehensive evidence of all income sources not only supports the accuracy of the tax return but also helps to demonstrate compliance with tax laws. Without this evidence, it would be challenging to defend the reported income figures, potentially leading to discrepancies, additional taxes owed, or penalties.

Other options present a limited perspective on the requirements for an audit. For instance, proving just financial assets or summarizing expenses alone does not fulfill the complete picture needed during an audit. Documentation is crucial to validating all aspects of a taxpayer's financial situation, thus ensuring a thorough review and accurate reporting. Lastly, stating that no documentation is necessary does not align with the requirements of an audit, as maintaining appropriate records is fundamental in tax compliance.