Glossary

Collection Information Statement (CIS)

A Collection Information Statement (CIS) is a detailed financial disclosure form that taxpayers submit to the IRS when applying for tax relief options, such as Installment Agreements, Offers in Compromise, or Currently Not Collectible (CNC) status. The form provides the IRS with an overview of the taxpayer’s financial situation, including income, expenses, assets, and liabilities.

Common forms used as part of the CIS include:

Form 433-A (for wage earners and self-employed individuals).
Form 433-B (for businesses).
Form 433-F (a simplified version for certain taxpayers).

The IRS uses the information from the CIS to determine the taxpayer’s ability to pay their tax debt and to evaluate whether a payment plan or other relief option is appropriate. It’s important for taxpayers to complete the CIS accurately, as any discrepancies may lead to delays or denial of their relief request.

Recommendation

Lien

A federal tax lien is a legal claim against your property, including real estate, vehicles, and financial assets, for unpaid tax debt.

Delinquent Return

A delinquent tax return is a return that was not filed on time, which may result in penalties, interest, and enforcement actions by the IRS.

CP3219A Notice

The CP3219A notice serves as a statutory notice of deficiency, informing taxpayers that they have the right to challenge the IRS’s findings in Tax Court.

Tax Extension

A tax extension gives taxpayers an additional six months to file their tax return, but they must still pay any taxes owed by the original deadline.

Letter 3753: Self-Employed Tax Debt Notice

IRS Letter 3753 notifies self-employed taxpayers of unpaid taxes and provides options for paying or resolving the debt.

Tax Protester

A tax protester is an individual who refuses to comply with tax laws, often citing invalid or unconstitutional grounds, leading to penalties and possible criminal charges.

Collection Information Statement (CIS)

A Collection Information Statement (CIS) is a financial disclosure form that taxpayers submit to the IRS when requesting payment plans or other tax relief options.

Letter 3220C: Offer in Compromise Acceptance

IRS Letter 3220C notifies taxpayers that their offer in compromise has been accepted, allowing them to resolve their tax debt for less than the total amount owed.

Write-Off

A tax write-off is an expense that taxpayers can deduct from their taxable income, reducing their overall tax liability.

Self-Employment Tax Deduction

The self-employment tax deduction allows self-employed taxpayers to deduct the employer-equivalent portion of their self-employment taxes, reducing their taxable income.