Voluntary Compliance

DEFINITION of 'Voluntary Compliance'

An assumption or principle that taxpayers will comply with tax laws and, more importantly, accurately report their income and deductions honestly.

BREAKING DOWN 'Voluntary Compliance'

This is one of those "ideal world" principles; for example, in an ideal world we wouldn't need police officers.

RELATED TERMS
  1. Audit

    An unbiased examination and evaluation of the financial statements ...
  2. Compliance Program

    The internal programs and policy decisions made by a company ...
  3. Income Tax

    A tax that governments impose on financial income generated by ...
  4. Tax Evasion

    An illegal practice where a person, organization or corporation ...
  5. Loophole

    A technicality that allows a person or business to avoid the ...
  6. Earnings Stripping

    Earnings Stripping is a commonly-used tactic by multinationals ...
Related Articles
  1. Investing News

    Obama Floats $10 a Barrel Oil Tax

    President Obama intends to propose a $10 a barrel tax on oil; consumers might have to cough up 25 cents more per gallon.
  2. Markets

    The (Expected) Market Impact of the 2016 Election

    With primary season upon us, investor attention is beginning to turn to the upcoming U.S. presidential election.
  3. Fundamental Analysis

    5 Economic Changes to Expect if a Republican Wins in 2016

    Discover the five most likely economic changes the United States can expect if a Republican wins the presidential election in 2016.
  4. Term

    What Is Section 1231 Property?

    Section 1231 property is depreciable business property that’s held for a year or longer.
  5. Fundamental Analysis

    5 Economic Changes to Expect if a Democrat Wins in 2016

    Discover the potential economic effects of a Democratic White House win in 2016, including higher taxes for the wealthy and tighter banking regulations.
  6. Taxes

    The Purpose Of The W-9 Form

    Businesses use IRS form W-9 to gather information from vendors they hire as independent contractors.
  7. Your Practice

    Tax Time is Coming; Don't Be Caught Off Guard

    It's time to think about tax returns again. The good news is that the regulations in 2016 have not changed dramatically from last year.
  8. Economics

    How Powerful Is The IRS?

    Historically, the IRS has wielded formidable power, and that power isn’t likely to diminish anytime soon.
  9. Economics

    Explaining Statute Of Limitations

    A statute of limitations sets the maximum time that parties have to initiate legal proceedings from the date an alleged offense occurred.
  10. Stock Analysis

    How the New Allergan Plc Will Make Money

    Allergan plc is not only enormous, it's about to more than double in size. Here's why and how.
RELATED FAQS
  1. How Long Should I Keep My Tax Records?

    The Internal Revenue Service (IRS) has some hard and fast rules regarding how long taxpayers should keep their tax records. As ... Read Full Answer >>
  2. Are personal loans tax deductible?

    Interest paid on personal loans is not tax deductible. If you take out a loan to buy a car for personal use or to cover other ... Read Full Answer >>
  3. Does a Flexible Spending Account (FSA) cover braces?

    Funds from a Flexible Spending Account (FSA) can be used to cover costs associated with installing, maintaining and removing ... Read Full Answer >>
  4. Does QVC charge sales tax?

    QVC, an American TV network, is registered with states to collect sales or use tax on taxable items. QVC is also required ... Read Full Answer >>
  5. Does a Flexible Spending Account (FSA) cover glasses?

    The funds in a Flexible Spending Account (FSA) can be used to cover most common medical expenses; this includes the cost ... Read Full Answer >>
  6. Are tax brackets adjusted for inflation?

    Each year, the U.S. Internal Revenue Service (IRS) adjusts tax brackets for changes in the cost of living to calculate federal ... Read Full Answer >>
Hot Definitions
  1. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  2. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  3. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  4. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center