Voluntary Compliance


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Voluntary Compliance

1. The principle that all taxpayer pay their taxes according to the law. That is, the IRS or other tax agency assumes that one has paid the appropriate amount of taxes unless something looks wrong on the tax return of the person or company.

2. A situation in which a person or company complies with a government request before it becomes an order. Voluntary compliance gives the person or company more leeway in how strictly the request is enforced; it can also be a good public relations move. Perhaps most importantly, voluntary compliance does not create the precedent that a government can simply order the release of documents, records, or anything else.
References in periodicals archive ?
Following the information drive on ending contractualization, the Department of Labor and Employment (DOLE-7) received reports on voluntary compliance of establishments on regularization of workers.
The measures being taken to promote voluntary compliance as well as to facilitate associations of persons (AOPs) include setting up of work stations at offices of Large Taxpayers Units (LTUs), regional Tax Offices (RTOs) Tax Facilitation Centres (TFCs) as well as organisation of workshops on e-filing processes and extension in duration of helpline hours.
This defect must first be corrected under the Voluntary Compliance Program of the Employee Plans Compliance Resolution System (EPCRS; Rev.
It may also offer a voluntary compliance program for taxpayers to encourage conformity with the Sec.
worksites each year in its efforts to ensure safe and healthy working conditions, the agency has increasingly supplemented enforcement with "voluntary compliance strategies" to reach more employers and employ its resources most effectively.
Under the offshore voluntary compliance program, such taxpayers are responsible for back taxes, interest and certain accuracy or delinquency penalties.
The Commission also discussed an initiative to promote voluntary compliance, as well as proposals to submit legislative recommendations aimed to improve the presidential public financing program, attack so-called Scam PACs and initiate a rulemaking on safeguarding U.S.
The stated purpose is to close the "tax gap" by encouraging voluntary compliance.
In order to encourage compliance with their tax shelter rules, California also commenced a Voluntary Compliance Initiative (VCI) effective for a limited period.
The Department believes that the program was somewhat of a compliance "litmus test." The fact that only 185 new fliers were added to the existing base of 375,000 taxpayers suggests that there is a high level of voluntary compliance by North Dakota taxpayers, the Department says.
Under the new rules, which went into effect July 21 and will be in force for three years, taxpayers will receive relief if collection of the liability would create economic hardship or if exceptional circumstances exist that would cause collection of the tax liability to be detrimental to voluntary compliance.
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