The most important determinants identified are: economic factors as the level of income, audit probabilities, tax audit, tax rate, tax benefits, penalties, fines and other non-economic factors as attitudes toward taxes, personal, social and national norms, perceived fairness etc.

• Monitor requirements
• Interpret
• Adjust your systems and processes
• Test
• Deploy to your production systems
• Audit

A compliance check is a review of information forms that the IRS requires taxpayer to file or maintain; for example, 940s, 941s, W-2s, 1099s, or W-4s. During a compliance check, the IRS may ask taxpayers whether they understand or have questions about the filing requirements for these forms

Tax compliance is defined as the ability and willingness of taxpayers to comply with the tax laws, declare the correct income for each year and pay the right amount of taxes on time.

Certain information will be requested and this could be one of the following: accounts and calculations, company tax return and/or PAYE records and returns. The timescale is typically 40 days from the date of issue of the information notice.

It includes concealing or fabricating income, falsifying deductions without proof. Another tax evasion example is failing to declare cash transactions, etc. People utilize various methods to avoid paying taxes, including filing fraudulent tax returns, smuggling, falsifying documents, and bribery.