Categories: General Tax Terms
Taxpayer Compliance Measurement Program
The Taxpayer Compliance Measurement Program (TCMP) is an initiative by the Internal Revenue Service (IRS) aimed at assessing the overall compliance of taxpayers with federal tax laws.
The program involves a systematic review of tax returns to measure the accuracy of reported income, deductions, and credits. By analyzing a representative sample of taxpayers, the IRS can identify compliance trends, estimate the tax gap (the difference between taxes owed and taxes paid), and enhance enforcement efforts. Participation in the TCMP can result in the IRS conducting audits and collecting detailed financial information from selected taxpayers to ensure compliance with tax regulations.
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