IRS Tax Compliance: What is Tax Compliance and Why Is It Important?

Education & Training with Tax Rep LLC

I spend much of my day resolving taxpayer issues with the IRS.  And though everyone wants to focus on the cool stuff - making massive debts vanish for pennies on the dollar - it actually all starts with "Tax Compliance."

So what is Tax Compliance you may be asking...good question!

Tax Compliance means that the taxpayer has filed all returns due and owing as of this moment (yes you non-filers!), defined as the last 6 years, and is making their current tax period payments.  So as I sit here in August 2021, Tax Compliance would nean having 2015 - 2020 filed (if the 2020 return is on extension, than it would be 2014 - 2019).  It also means that the taxpayer is making their current tax payments, so:

  1. An employee is having sufficient withholding done so they will not owe money at the end of the year;
  2. Self-Employed individuals have made this year's estimated tax payments (1st and 2nd quarter are due as of today);
  3. Business clients have made their current 3rd quarter payroll tax deposits.

For non-filers, or folks who have back tax debts to the IRS, tax compliance must be dealt with first before an Offer-in-Compromise or installment agreement will even be considered by the IRS.  So take care of your tax compliance first, then get to work with your Tax Rep pro on resolving the issue once and for all!

If you or someone you know has a tax issue please feel free to contact me at either (203) 285-8545 or by email at

Eric L. Green, Esq

Green & Sklarz LLC, One Audubon Street, 3rd Floor, New Haven, CT 06511

Ph. (203) 285-8545 


Posted by

Comments (2)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Eric. Never a btter time to tel the truth and cler the air. Even better to seek professional help! Enjoy your day.

Aug 12, 2021 04:19 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and enjoy your day!

Jan 05, 2022 07:37 AM