Definition for the terms “Current and Compliant” in reference to tax liability
Very simply, the term “Current and Compliant” means a taxpayer is:
- Current with the payment of all required tax deposits, AND
- Compliant with the filing of all required tax returns.
This applies to both individual and business taxpayers.
When resolving tax liability, it is very important for a taxpayer to be both current and compliant. This is because a taxing authority (i.e. IRS, State Department of Revenue, etc.) will not consider a resolution until a taxpayer meets both criteria.
The taxing authorities also require a taxpayer to remain current and compliant for a resolution to stay active. If the taxpayer is either not current or not compliant, any active resolution will likely default, and the taxpayer will be open to collection action such as levies or liens.
To determine your requirement for tax deposits as individual or business taxpayers, look forward to our next blogs covering these sections.
If you or anyone you know has a tax liability, we are here for you! Call us at 800-540-0433 to get a risk-free consultation.