> ## Documentation Index
> Fetch the complete documentation index at: https://docs.taxhomebase.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Audit Readiness

> The 100-point weighted scoring system that evaluates your IRS audit preparedness.

TaxHomeBase uses a 100-point weighted audit readiness score to evaluate how prepared you are for an IRS review of your tax-free stipends. Each criterion is weighted by its IRS importance — items that matter most to the IRS count the most. The score appears in three places: the Dashboard, the Tax Estimate page, and the Export page.

<Note>The numeric score (e.g., "82/100") is visible on the free plan. The detailed breakdown showing which criteria pass or fail requires Pro.</Note>

## Scoring Criteria

### Core Tax Home Criteria (9 checks, 74 points)

| Criterion                   | Weight | Passes When                                     |
| --------------------------- | ------ | ----------------------------------------------- |
| **Tax home declared**       | 15     | Tax home record exists                          |
| **Rent paid**               | 12     | Tax home has a non-zero rent amount             |
| **Recent visit**            | 10     | Last tax home visit within 30 days              |
| **Property not rented out** | 8      | Tax home property is not rented to tenants      |
| **12-month rule**           | 8      | No location exceeds 12-month cumulative limit   |
| **Voter registration**      | 6      | Voter registration confirmed at tax home        |
| **Driver's license**        | 6      | DL state matches tax home state                 |
| **Active assignment**       | 5      | At least one active assignment exists           |
| **Distance compliant**      | 4      | Assignment is far enough from tax home (\~50mi) |

### Documentation Criteria (4 checks, 26 points)

| Criterion            | Weight | Passes When                               |
| -------------------- | ------ | ----------------------------------------- |
| **Tax home costs**   | 7      | At least one cost record exists           |
| **Expenses tracked** | 7      | At least one expense recorded             |
| **GSA compliance**   | 6      | All assignment stipends within GSA limits |
| **Mileage logged**   | 6      | At least one mileage trip recorded        |

**Total: 13 criteria, 100 points.**

## Why Weighted?

Not all criteria are equal in the eyes of the IRS. A nurse without a declared tax home faces a much bigger risk than one missing a single mileage log. The weights reflect this — declaring your tax home is worth 15 points, while logging mileage is worth 6. This means a nurse with no tax home sees "25/100" instead of "11/13" — the urgency gap is much larger and more accurately reflects the actual risk.

## Conditional Auto-Pass

Items that don't apply to your situation pass automatically:

* No assignments → active assignment, 12-month rule, and distance check auto-pass
* No tax home → rent, visit, voter reg, DL, and property status auto-pass

This prevents new users from seeing a failing score before they've set anything up.

## Where the Score Appears

### Dashboard

The **Stipend Protection Banner** shows "X/100 points" with a status indicator:

* "Audit ready" — all core criteria passing
* "Action needed" — one or more criteria failing

### Tax Estimate

The **Audit Readiness** section (collapsible) shows all 13 criteria with pass/fail indicators and expandable detail.

### Export

The **Audit Defense Checklist** card shows a progress ring with the score and individual checklist items.

## How It's Computed

The score is computed by `alertService.js` (server) and mirrored in `auditReadiness.js` (client) — both use identical `WEIGHTS` constants. The function takes user data (tax home, assignments, documents, expenses, mileage, costs) and returns the score (percentage), count (weighted points earned), total (100), and per-criterion results.

## Improving Your Score

Each failing criterion has a clear fix:

| Criterion               | How to Fix                                                |
| ----------------------- | --------------------------------------------------------- |
| Tax home declared       | Set up your tax home on the Tax Home page                 |
| Rent paid               | Enter your monthly rent amount                            |
| Recent visit            | Log a tax home visit (must be within 30 days)             |
| Voter registration      | Confirm voter registration at your tax home address       |
| Driver's license        | Set your DL state to match your tax home state            |
| Property not rented out | Mark your property as not rented to tenants               |
| 12-month rule           | Avoid staying at one location for more than 12 months     |
| Distance compliant      | Ensure assignments are far enough from your tax home      |
| Tax home costs          | Record at least one tax home cost (rent, utilities, etc.) |
| GSA compliance          | Verify stipends don't exceed GSA per diem limits          |
| Expenses tracked        | Log at least one work-related expense                     |
| Mileage logged          | Record at least one mileage trip                          |