What does noncompliance signify in tax practice?

Noncompliance in tax practice primarily signifies the failure to adhere to the tax code. This encompasses a range of behaviors that do not align with the requirements set forth by tax laws and regulations. It includes actions such as failing to file tax returns, underreporting income, or not paying taxes owed. By not following the tax code, taxpayers may expose themselves to penalties and interest, as well as potential legal consequences.

The other options represent specific instances of noncompliance but do not capture the broader definition. Refusal to pay taxes is a serious aspect of noncompliance, but it is a specific action rather than an umbrella term. Ignoring tax filing deadlines can fall under noncompliance as well, but it is only one aspect. Overreporting income, while generally speaking to a different tax issue, can also lead to noncompliance if it is done with the intention of misleading tax authorities or claiming undue refunds, but it is not the primary definition of the term. Thus, the ideal choice encompasses the overall concept of failing to adhere to the tax code.