Tax compliance refers to the adherence to tax laws and regulations set by government authorities. This includes accurately reporting income, calculating taxes owed, and timely filing tax returns. Individuals and businesses must ensure they meet their obligations to avoid penalties and legal issues.
To achieve tax compliance, taxpayers often rely on tools and resources, such as tax software or professional accountants. These resources help in understanding complex tax codes and ensuring that all deductions and credits are properly claimed. Staying compliant not only fosters trust with tax authorities but also contributes to the overall functioning of the economy.