Final answer:
Tax compliance is the process of filing necessary tax returns, gathering financial information, and representing a taxpayer at an IRS audit.
Step-by-step explanation:
Tax compliance is the process of filing necessary tax returns, gathering the financial information necessary to report taxable income, and representing a taxpayer at an IRS audit. It encompasses all these activities and ensures that individuals and organizations are following the tax laws and regulations set by the government. Filing tax returns accurately and on time is an essential part of tax compliance, as it allows individuals and organizations to report their income and pay the appropriate amount of taxes.