Question by  wadegiles (19)

What is the meaning of "voluntary compliance" with respect to tax code?

My IRS auditor mentioned this term and I'd like to know what it means.


Answer by  Att4372 (1704)

You fill out your tax forms on your own. The IRS already has most of the numbers, so cheating makes little sense. You then claim exemptions and deductions and determine your tax. If you owe, you pay. Generally, the IRS believes you, but they have 3 years to request proof.


Answer by  anoldmetfan (20)

Voluntary compliance refers to the responsible action that a citizen is expected to take to comply with the tax laws of any governing jurisdiction. The premise is that one will freely determine and pay the correct tax liability in the prescribed time-frame.


Answer by  Math68 (308)

It likely depends on how your auditor applied the term. If he referring to the tax code as a whole, he might have been referring to the idea that the U.S. tax code requires individuals to fill out returns and submit them to the government.


Answer by  y3636363 (1380)

That you agree with the IRS Standards and you comply with all of the rules and that is what that means.


Answer by  Taxmatters (169)

The US tax system is based on the taxpayer taking the responsibility to file an accurate return and report all income on their return. Without voluntary compliance Congress and the IRS feel the tax system would be unmanageable.


Answer by  DesertRat (699)

Voluntary compliance is what everyone does who submits an accurate tax return. If you're asked to do something, and you do it without having to be threatened, you complied voluntarily. Voluntary compliance is necessary to our entire tax structure - the manpower necessary to collect taxes if Americans did not comply voluntarily would cost more than the taxes collected.


Answer by  DP (6)

Truly only on Individual or tax payer's discretion. The tax authorities will considered it to be true on what ever the the tax payer commits. Example include interest on Capital,Term deposits

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