Voluntary compliance

Voluntary compliance is the principle that taxpayers assess and report their own tax, with the IRS enforcing through matching, audits, and penalties.

How it works

It is why every form the IRS receives from a third party is compared to your return, and why coming forward before the IRS makes contact is treated differently from being found.

Why it matters

The IRS is generally more lenient with taxpayers who correct their own mistakes, which is the basis for the streamlined procedures and the voluntary disclosure practice. Voluntary Disclosure Practice.

Where this comes up in our work

Tax controversy attorneys

Audits, penalties, collections, criminal exposure, and Tax Court, handled by attorneys who do this every day.

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.