Glossary

Letter 3220C: Offer in Compromise Acceptance

What Does Letter 3220C Mean for Your Taxes?

A Letter 3220C from the IRS confirms that your Offer in Compromise (OIC) application has been accepted. This means the IRS has agreed to settle your tax debt for a reduced amount, based on your individual financial situation. Upon fulfilling the terms outlined in the letter, your tax debt is considered satisfied.

Glossary Article

Recommended for You

Abatement for Incorrect Educational Credits

Abatement for Incorrect Educational Credits helps taxpayers correct errors related to educational tax credits claimed on their returns, mitigating penalties and ensuring compliance with tax laws.

Payment Plan Termination

Payment Plan Termination refers to the conclusion of a taxpayer's installment agreement with the IRS, impacting their obligation to fully settle remaining tax liabilities.

Form 2350 – Application for Extension of Time to File U.S. Income Tax Return (for taxpayers abroad)

Form 2350 is an IRS form that allows U.S. citizens and resident aliens living outside the United States to request an automatic extension to file their income tax return. This form is specifically designed to accommodate the unique tax situations of expats.

Negligence Penalty Waiver

A Negligence Penalty Waiver is an IRS provision allowing taxpayers to avoid penalties due to negligence or disregard of regulations, given valid reasons are provided.

Subscription Fees for Digital Libraries Deduction

The deduction for subscription fees to digital libraries offers taxpayers a potential financial benefit by allowing eligible educational and professional subscription costs to be deducted from taxable income.

Digital Equity Workforce Training Credit

The Digital Equity Workforce Training Credit promotes workforce skills development by offering tax incentives for eligible training programs.

Relief for Overstated Business Property Deductions

Relief for overstated business property deductions allows taxpayers to correct errors in their deductions safely, avoiding penalties through specific IRS provisions.

Digital Accessibility Enhancements Deduction

The Digital Accessibility Enhancements Deduction offers tax incentives to companies investing in enhancing their digital platforms to meet accessibility standards.

State Workforce Technology Training Credit

The State Workforce Technology Training Credit is a tax incentive aimed at encouraging businesses to invest in employee technology training, enhancing skills for workforce competitiveness.

Expenses for Team Bonding Activities Deduction

The expenses for team bonding activities deduction allows businesses to deduct costs related to activities that improve team cohesion and productivity.

IRS Payment Adjustment Request

The IRS Payment Adjustment Request allows taxpayers to correct or request changes to previously filed payments with the IRS to ensure accurate account standing.

Warehouse Layout Optimization Services Deduction

Learn about the Warehouse Layout Optimization Services Deduction and its importance in reducing operational costs through eligible tax savings.

First-Time Penalty Abatement (FTA)

First-Time Penalty Abatement (FTA) is an IRS program offering a one-time reprieve from certain tax penalties for taxpayers who meet specific criteria. It's a chance to get a clean slate if you’ve made an honest mistake.

Community Redevelopment Incentive Credit

The Community Redevelopment Incentive Credit is a tax credit designed to encourage investment in underdeveloped areas, fostering revitalization and economic growth.

Abatement for Duplicate State Tax Refund Filings

Abatement for Duplicate State Tax Refund Filings is a process that addresses the issue of multiple refund claims for the same tax return, preventing fraudulent or erroneous filings.

Penalty for Withholding Underreporting

The Penalty for Withholding Underreporting is a tax penalty imposed when an entity fails to accurately report the taxes withheld on payments. It ensures compliance and accurate tax reporting.

Federal Tax Levy Program

The Federal Tax Levy Program allows the IRS to seize assets to satisfy outstanding tax debts. It is a key enforcement tool for tax collection.

Customized Business Templates Deduction

The Customized Business Templates Deduction allows businesses to deduct expenses incurred in creating specialized templates essential for operations. This deduction can help reduce taxable income and encourage businesses to invest in specialized tools.

Losses from Counterfeit Goods Deduction

The 'Losses from Counterfeit Goods Deduction' allows businesses to claim tax relief on financial losses caused by counterfeit goods, subject to specific IRS guidelines.

Taxpayer Relief Advocacy Programs

Taxpayer Relief Advocacy Programs are initiatives aimed at assisting taxpayers with resolving tax disputes, reducing penalties, and achieving fair resolutions with tax authorities.