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.

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RELATED FAQS
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    Learn more about generally accepted accounting principles determined by the Financial Accounting Standards Board, including ... Read Answer >>
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    Understand the generally accepted accounting principles and why they were put in place. Learn what entity sets the guidelines ... Read Answer >>
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    Taking the standard deduction is the easiest and most common method chosen by filers, but many taxpayers may wind up paying ... Read Answer >>
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    Learn about changes in accounting principle and why businesses make them, as well as the reporting and recording requirements ... Read Answer >>
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