Glossary

First-Time Abatement (FTA)

What is the IRS First-Time Abatement (FTA) Program?

The First-Time Abatement (FTA) is an IRS program that allows certain taxpayers to have penalties waived for the first time they fail to file or pay on time. To qualify, a taxpayer must have a clean record for the previous three years and meet other specific criteria.

Glossary Article

Recommended for You

Fees for Sustainable Packaging Initiatives Deduction

The Fees for Sustainable Packaging Initiatives Deduction allows businesses to deduct expenses incurred from adopting eco-friendly packaging. This tax break supports environmental responsibility while offering financial incentives.

Business Agreement Reinstatement Form

The Business Agreement Reinstatement Form helps reinstate lapsed business agreements, ensuring compliance with tax regulations and avoiding potential penalties.

State-Specific Education Credit

The State-Specific Education Credit is a tax incentive allowing taxpayers to claim deductions for eligible education expenses as specified by their state's regulations.

Form 5471 – Information Return of U.S. Persons with Respect to Certain Foreign Corporations (noted earlier under international reporting)

Form 5471 is an IRS information return used by U.S. persons who own a certain amount of stock in a foreign corporation. It helps the IRS track foreign business activities of U.S. taxpayers.

CP60 Notice

A CP60 notice is an IRS communication informing you of a change or update to your account or return. It's important to understand what it means to take appropriate action.

CP503AK Reminder

The CP503AK Reminder is an IRS notice sent to taxpayers to inform them of overdue taxes and urge prompt action. It serves as a crucial step in the tax collection process.

Affordable Workforce Renewable Resilience Credit

The Affordable Workforce Renewable Resilience Credit incentivizes sustainable workforce development in renewable energy. It supports financial compliance and resilience.

Professional Influencer Marketing Fees Deduction

Professional Influencer Marketing Fees Deduction allows influencers to deduct expenses incurred during marketing, ensuring tax efficiency.

Cross-Border Renewable Energy Credit

Cross-Border Renewable Energy Credits facilitate international renewable energy developments via tax incentives, promoting sustainability and economic growth.

Form 8396 – Mortgage Interest Credit

Form 8396 is used to claim the mortgage interest credit, which can help certain lower-income homeowners reduce their tax burden. It's not the same as the mortgage interest *deduction*.

Taxpayer Installment Plan

A Taxpayer Installment Plan is an IRS-arranged payment agreement that allows taxpayers to pay off owed taxes over time, easing financial strain and ensuring tax compliance.

Rural Energy Workforce Incentive Credit

The Rural Energy Workforce Incentive Credit is a tax credit aimed at bolstering employment in the renewable energy sector in rural areas. It incentivizes companies by reducing tax liabilities when they invest in workforce development.

Installment Plan Reinstatement Notice

An Installment Plan Reinstatement Notice informs taxpayers about reactivating an inactive tax payment plan, and outlines compliance and filing requirements.

CP503AP Reminder

The CP503AP Reminder is an IRS notice alerting taxpayers of outstanding tax balances. Understand its purpose, compliance, and significance in tax management.

Cell Phone Depreciation Deduction

Cell Phone Depreciation Deduction allows taxpayers to deduct the depreciation of a smartphone used for business purposes, reducing taxable income and improving tax efficiency.

Subscriptions to Professional Journals Deduction

The 'Subscriptions to Professional Journals Deduction' allows taxpayers to deduct expenses related to professional journal subscriptions, supporting continued education and industry-related learning.

Reasonable Cause Affidavit

A Reasonable Cause Affidavit explains a taxpayer's valid reasons for failing to comply with tax obligations, potentially waiving penalties.

Levy Suspension

A levy suspension halts IRS property seizures, offering taxpayers temporary relief during financial hardships. It allows time to resolve tax issues confidently.

Community Microgrid Workforce Credit

The Community Microgrid Workforce Credit is a tax incentive designed to promote local workforce development in microgrid projects, driving sustainable energy solutions.

Form 8995 – Qualified Business Income Deduction (QBI) Simplified Computation

Form 8995 is a simplified tax form used by individuals to claim the Qualified Business Income (QBI) deduction, which can lower your taxes if you own a business or are self-employed. Using this form can be an easier way to calculate this important tax break.