E-commerce · Evidence
Tax return and management-account comparison
Published · Reviewed by The Diligence Standard Team · Updated
Tax filings do not prove current earnings, but differences from management accounts should have a documented bridge.
Records to reconcile
- Filed returns and supporting schedules
- Monthly management P&Ls
- Book-to-tax reconciliation
Warning signal
Revenue, payroll or owner compensation differs materially without a credible explanation.
Transaction impact
Earnings quality and add-back support may weaken.
Response
Prepare a period-specific bridge and send tax conclusions to the appropriate tax professional.