Glossary

Form 433-B: Collection Information Statement for Businesses

IRS Form 433-B is a financial disclosure form that businesses use when applying for IRS tax relief programs, such as Installment Agreements, Offers in Compromise (OIC), or to be classified as Currently Not Collectible (CNC). This form provides a detailed picture of the business’s financial situation, including income, expenses, assets, and liabilities.

The IRS requires this form to assess a business’s ability to pay its tax debt and to determine the appropriate tax relief options. Form 433-B must be completed with accuracy and full disclosure, as incomplete or incorrect information can delay or prevent approval for tax relief.

Recommendation

CP86 Notice: Missing Information on Tax Return

The IRS CP86 Notice alerts taxpayers that their tax return is missing essential information and outlines steps for correcting the issue.

Tax Deferment

Tax deferment allows taxpayers to delay paying taxes on income or gains until a future date, such as with retirement accounts or investment gains.

Tax Levy Release

A tax levy release halts the IRS from seizing assets like wages or bank accounts to collect unpaid tax debt, providing temporary relief to the taxpayer.

Letter 6152: Notice of Federal Tax Lien Filed

IRS Letter 6152 notifies taxpayers that a federal tax lien has been filed against their property due to unpaid taxes and outlines steps to resolve the lien.

Failure to File Penalty

The IRS Failure to File Penalty is imposed on taxpayers who fail to file their tax return by the due date, typically 5% of the unpaid tax for each month

Letter 1058A: Notice of Intent to Levy on Specific Property

IRS Letter 1058A informs taxpayers that the IRS intends to levy specific property, like real estate or other assets, unless the tax debt is resolved.

IRS Notice CP90: Final Notice of Intent to Levy and Notice of Your Right to a Hearing

IRS Notice CP90 is a final notice warning that the IRS will seize your assets or wages if you do not pay your tax debt or request a hearing.

Letter 3219C: Statutory Notice of Deficiency

The IRS Letter 3219C, also known as a Statutory Notice of Deficiency, notifies taxpayers that they owe additional taxes and provides the option to contest it in tax court.

Charitable Contribution Deduction

The charitable contribution deduction allows taxpayers who itemize deductions to reduce their taxable income by donating to qualified charitable organizations.

CP49 Notice: Refund Applied to Other Federal Debts

The IRS CP49 Notice notifies taxpayers that their refund has been applied to federal debts other than taxes, such as student loans or federal benefit overpayments.