Glossary

CP504A Notice

What is a CP504A Notice and What Does It Mean for You?

A CP504A notice is a legal document from the IRS stating that you owe federal taxes, and if you don’t pay, they plan to levy (seize) your state tax refund. It is not a bill. It’s a notice indicating the IRS has taken or intends to take your state tax refund to cover past due federal taxes.

Glossary Article

Recommended for You

Relief for Overstated Educational Tax Credits

Learn about relief options for overstated educational tax credits, key compliance requirements, and their impact on financial obligations.

Virtual Team Development Workshops Deduction

Explore the tax deduction opportunities for Virtual Team Development Workshops, including eligibility criteria, filing requirements, and potential compliance implications.

Renewable Workforce Electrification Development Modernization Credit

The Renewable Workforce Electrification Development Modernization Credit incentivizes businesses to adopt renewable energy, promoting workforce development and infrastructure modernization.

Energy-Efficient Heating Upgrades Deduction

The Energy-Efficient Heating Upgrades Deduction allows homeowners to deduct costs associated with eco-friendly heating installations from their taxable income. This promotes energy conservation and financial savings.

Form 4868 – Application for Automatic Extension of Time to File U.S. Individual Income Tax Return (reiterated under extension categories)

Form 4868 is a way for individuals to automatically get more time to file their federal income tax return, providing an extra six months to complete the paperwork. It's essential for those who can't meet the usual April tax deadline.

Employer Social Security Contribution Deduction

The Employer Social Security Contribution Deduction involves the portion employers contribute towards Social Security, deductible for business tax purposes.

Monthly Payment Verification Letter

A Monthly Payment Verification Letter is sent to taxpayers to confirm regular payments towards a tax liability or debt, ensuring compliance and record accuracy.

Solar Water Heating Credit

The Solar Water Heating Credit offers tax incentives for homeowners and businesses that utilize solar energy to heat water. It's a key part of promoting renewable energy solutions.

Form 5227-A – Annual Statement for Fiduciary Split Trust Reporting

Form 5227-A is an annual information return used to report the financial activities of split-interest trusts, ensuring transparency and proper tax compliance for these unique types of trusts. It's crucial for trustees to understand this form.

Business Payment Plan Reinstatement

A Business Payment Plan Reinstatement allows businesses to reactivate installment agreements with tax authorities after temporary lapses. It ensures continuous compliance and avoids penalties.

Employee Telehealth Services Deduction

The Employee Telehealth Services Deduction allows employers to deduct costs associated with providing telehealth services to employees, emphasizing healthcare accessibility.

CP14 Notice: Balance Due Notification

A CP14 notice is an IRS notification informing you that you owe taxes. It’s crucial to understand this notice and take appropriate action to avoid further penalties.

Coastal Energy Infrastructure Credit

The Coastal Energy Infrastructure Credit incentivizes the development of renewable energy projects in coastal areas, promoting environmental sustainability.

Temporary Staffing Agencies Deduction

The Temporary Staffing Agencies Deduction allows temporary staffing agencies to maximize deductions and comply with tax regulations. It's critical for optimizing tax liabilities.

Payment Agreement Penalty Relief

Payment Agreement Penalty Relief allows taxpayers to avoid penalties by establishing a structured payment plan with the taxing authority for overdue taxes.

Late Filing Penalty Reduction

Explore the concept of Late Filing Penalty Reduction, techniques, and programs offered by the IRS to minimize penalties for late tax return submissions.

Form 8917 – Tuition and Fees Deduction

Form 8917 allows eligible taxpayers to deduct qualified tuition and fees paid for higher education. This deduction helps reduce taxable income, potentially saving money on your taxes.

CP03A Notice

A CP03A Notice from the IRS indicates that the agency needs more time to process your tax return. It’s not necessarily a bad sign, but it's important to understand what it means and how to handle it.

Form 656 – Offer in Compromise

Form 656, the Offer in Compromise (OIC) application, allows certain taxpayers to potentially resolve their tax debt with the IRS for a lower amount than they originally owe. It's a potential lifeline for taxpayers struggling with significant tax burdens.

Inaccurate Tax Return Penalty

The Inaccurate Tax Return Penalty is a financial penalty imposed for errors or omissions on tax returns. It underscores the importance of accuracy in tax filing.