Glossary

Federal Tax Deposit (FTD)

What is a Federal Tax Deposit (FTD) and Why Does it Matter?

A Federal Tax Deposit (FTD) is the method by which businesses and some other taxpayers pay certain federal taxes, such as employment taxes (like Social Security and Medicare) and excise taxes. Instead of sending a check directly to the IRS, these taxes are deposited into an authorized bank or through the Electronic Federal Tax Payment System (EFTPS).

Glossary Article

Recommended for You

Historic Rehabilitation Credit

The Historic Rehabilitation Credit is a tax incentive designed to encourage the preservation and restoration of historic buildings. It offers financial benefits to property owners who invest in certified rehabilitations.

Customized Work Uniforms Deduction

The Customized Work Uniforms Deduction allows employees to deduct expenses on specialized clothing required for their job, provided these uniforms aren't suitable for everyday wear.

Renewable Energy Workforce Retention Credit

The Renewable Energy Workforce Retention Credit is a tax incentive designed to support employers in the renewable energy sector by retaining their skilled workforce.

Payment Plan Default

Payment Plan Default in tax terms refers to the failure to adhere to agreed payment schedules with tax authorities. This leads to penalties and can complicate future tax negotiations.

Monthly Payment Compliance Form

The Monthly Payment Compliance Form is a tax-related document ensuring regular payment adherence by businesses. It helps avoid penalties and ensures compliance with tax obligations.

Coastal Renewable Electrification Training Job Development Credit

The Coastal Renewable Electrification Training Job Development Credit is a tax incentive aimed at promoting renewable energy projects along coastal areas, focusing on electrification and job creation.

Reinstatement Fee

A Reinstatement Fee is a charge imposed to restore the status of a taxpayer after a lapse in compliance, often related to tax filings or payment deadlines.

EV Accessibility Workforce Training Credit

The EV Accessibility Workforce Training Credit provides tax incentives for organizations offering training programs focused on electric vehicle accessibility and education.

Renewable Workforce Modernization Equity Training Credit

The Renewable Workforce Modernization Equity Training Credit provides tax incentives to support employment training for sustainable energy sectors.

Fees for Business Ecosystem Partnerships Deduction

The Fees for Business Ecosystem Partnerships Deduction allows businesses to deduct expenses related to forming and maintaining partnerships within a business ecosystem, enhancing strategic growth and tax efficiency.

CP503K Reminder

The CP503K Reminder is a notice issued by tax authorities to warn taxpayers of impending payment deadlines and encourage timely resolution of outstanding tax debts.

Loss from Failed Product Launches Deduction

The Loss from Failed Product Launches Deduction allows businesses to deduct losses arising from unsuccessful product introductions, reducing taxable income.

Mortgage Redemption Clauses

Mortgage Redemption Clauses are provisions in a loan agreement that outline specific terms and conditions for terminating a mortgage before maturity. These clauses are crucial for financial planning and tax compliance.

Abatement for Incorrect Taxpayer Identification Number

The abatement for an incorrect Taxpayer Identification Number is a relief measure that allows taxpayers to escape penalties resulting from providing an incorrect TIN during filing.

Renewable Workforce Modernization Training Expansion Credit

The Renewable Workforce Modernization Training Expansion Credit is a tax incentive designed to support the development and expansion of training programs focused on enhancing the workforce within the renewable energy sector.

Renewable Workforce Modernization Job Credit

The Renewable Workforce Modernization Job Credit is a tax incentive aimed at encouraging businesses to improve their workforce and operations to support sustainable practices.

Relief for Misreported Business Energy Credits

The 'Relief for Misreported Business Energy Credits' offers tax solutions for businesses that incorrectly reported their energy tax credits, helping them avoid penalties and ensure compliance.

Form 3921 – Exercise of an Incentive Stock Option Under Section 422(b)

Form 3921 is an IRS form used to report the exercise of an incentive stock option (ISO). Understanding this form is crucial for correctly reporting taxes on stock options.

Coastal Renewable Workforce Energy Development Credit

The Coastal Renewable Workforce Energy Development Credit is a tax incentive aimed at fostering job growth and renewable energy projects in coastal regions.

Office Cleaning Supplies Deduction

The Office Cleaning Supplies Deduction allows businesses to deduct the cost of cleaning supplies used to maintain a clean and safe office environment from their taxable income.