Self-Employment Tax
Self-employment tax is a Social Security and Medicare tax that individuals must pay when they work for themselves.
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.
Shared Responsibility Payment (SRP)
The Shared Responsibility Payment (SRP) was a penalty under the Affordable Care Act for individuals who did not have qualifying health insurance.
Statute of Limitations on IRS Collections
The statute of limitations on IRS collections is typically 10 years, after which the IRS can no longer pursue unpaid tax debt, unless certain actions extend the period.
Statute of Limitations on Tax Debt
The statute of limitations on tax debt is the time limit during which the IRS can collect unpaid taxes, usually 10 years from the date of assessment.
Statutory Notice of Deficiency
A Statutory Notice of Deficiency is an official IRS notification that a taxpayer owes additional taxes, with an opportunity to dispute the assessment in Tax Court.
Substitute for Return (SFR)
An IRS Substitute for Return (SFR) is filed by the IRS on behalf of a taxpayer who fails to submit a required tax return.
Tax Adjustment
A tax adjustment is a change made by the IRS to a taxpayer’s return, often due to discrepancies or errors in reported income or deductions.
Tax Court
The U.S. Tax Court allows taxpayers to dispute IRS assessments and decisions, providing an independent forum for resolving tax controversies.
Tax Credit
A tax credit directly reduces a taxpayer’s tax liability, potentially resulting in a refund or lowering the amount of taxes owed.
Tax Debt Forgiveness
Tax debt forgiveness refers to programs that allow taxpayers to reduce or eliminate their tax debt based on financial hardship or inability to pay.
Tax Deduction
A tax deduction reduces a taxpayer’s taxable income, thereby lowering their overall tax liability.
Tax Deferment
Tax deferment allows taxpayers to delay paying taxes on income or gains until a future date, such as with retirement accounts or investment gains.
Tax Deficiency
A tax deficiency is the difference between the amount of tax the IRS determines you owe and the amount you reported on your return.
Tax Evasion
Tax evasion is the illegal act of deliberately avoiding paying taxes owed to the IRS, resulting in severe penalties, fines, and potential imprisonment.
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.
Tax Forgiveness
Tax forgiveness is when the IRS cancels part or all of a taxpayer’s debt, often through an Offer in Compromise or similar program.
Tax Forgiveness for the Deceased
Tax forgiveness for the deceased may relieve some tax liabilities if a taxpayer dies with unpaid taxes, though the estate is generally responsible for the debt.
Tax Garnishment
Tax garnishment is a legal process through which the IRS seizes a portion of a taxpayer’s wages, bank accounts, or other assets to satisfy unpaid tax debts.
Tax Levy
A tax levy allows the IRS to seize a taxpayer’s assets, including wages and bank accounts, to satisfy unpaid tax debt.