What is Tax Compliance & Why is it important?

Education & Training with Tax Relief Central

In short it means all tax returns have been filed and tax has been paid timely. In general, a taxpayer needs to take the following steps to get into tax compliance:

  • file all tax returns due on time
  • if you are an employee, sufficient taxes need to be withheld to cover your tax bill
  • if you are self-employed, estimated tax payments need to be made each quarter as required
  • if you are a business, payroll taxes need to be deposited on time for each period
  • all future tax returns that are due must be filed in a timely manner

Self employed individuals need to file quarterly estimated tax payments with the Form 1040 ES by the following due dates- April 15, June 15, September 15 and January 15

If you are a business, then the employer needs to file and pay the taxes withheld from their employees on a quarterly basis with the Form 941

A taxpayer needs to get into compliance and maintain compliance to avoid getting into trouble with the IRS. Failing to file a tax return or filing a tax return with balance due sets off a host of terrible problems with the IRS including penalties, notices and stress!

If a taxpayer account gets into the Collection Division inventory, because of un-filed tax returns or unpaid taxes, the IRS Collection Division will start the process to collect delinquent taxes and secure late tax returns.

Call us immediately at (602)904-6535 if you have received notices from IRS or if you have un-filed tax returns including back taxes. We will help you get on the right side of IRS right away.


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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for sharing your experience and your advice.

May 31, 2020 12:39 PM #1
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Vani Murthy, CPA

IRS Problem Resolution
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