Tax Compliance
Tax compliance refers to the process of adhering to tax laws, regulations, and filing requirements set by governmental authorities, such as the IRS in the U.S. or HMRC in the UK. It involves calculating, reporting, and paying taxes accurately and on time to avoid penalties, audits, or legal issues. In a business context, it often includes managing payroll taxes, sales taxes, corporate income taxes, and international tax obligations.
Developers should learn tax compliance when building financial applications, accounting software, e-commerce platforms, or any system that handles transactions, payroll, or revenue reporting. It's crucial for ensuring legal operation, reducing financial risks, and integrating with tax calculation APIs or services like Avalara or TaxJar. Knowledge is also valuable for startups navigating tax obligations or developers in fintech roles requiring regulatory awareness.