Glossary

A tax levy release halts the IRS from seizing assets like wages or bank accounts to collect unpaid tax debt, providing temporary relief to the taxpayer.

A tax lien is a legal claim placed by the IRS on a taxpayer’s property, giving the government the right to collect unpaid taxes from the property’s value.

Tax lien subordination allows a federal tax lien to be moved to a lower priority, helping taxpayers refinance or sell property while still owing tax debt.

A tax lien withdrawal removes the IRS’s notice of a federal tax lien, lifting its public record status and restoring the taxpayer’s ability to manage their assets freely.

A tax offset occurs when the IRS uses a taxpayer’s refund to pay off an outstanding debt, such as unpaid taxes, student loans, or child support.

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.

A tax refund offset occurs when the IRS applies a taxpayer’s refund to unpaid debts, such as back taxes or student loans.

Tax relief includes measures that reduce the amount of taxes owed, such as credits, deductions, payment plans, or offers in compromise for eligible taxpayers.

Tax resolution is the process of resolving tax debt with the IRS, using methods like payment plans, penalty abatement, or Offers in Compromise.

A tax return transcript is a document that summarizes key information from your tax return, often used for financial aid or loan applications.

A tax transcript is a document that summarizes key information from a taxpayer’s return, used for financial aid, mortgage loans, or income verification.

A tax transcript request is a formal request made to the IRS to obtain a summary of a taxpayer’s return or account, often used for income verification or loan applications.

Tax withholding is the process of automatically deducting income taxes from your wages, which are then sent to the IRS on your behalf.

The IRS Tax Withholding Estimator helps taxpayers calculate and adjust the correct amount of taxes withheld from their paychecks.

The Treasury Offset Program (TOP) allows the IRS to apply a taxpayer’s refund toward unpaid federal or state debts, such as back taxes or student loans.

The trust fund penalty is a personal liability imposed on individuals responsible for collecting and paying payroll taxes but who fail to do so.

The Trust Fund Recovery Penalty (TFRP) is imposed on individuals responsible for unpaid payroll taxes, including Social Security and Medicare taxes.

Currently Not Collectible (CNC) status is a designation that temporarily stops IRS collection actions for taxpayers unable to pay their tax debt.

The IRS underpayment penalty is imposed when taxpayers fail to pay enough estimated taxes or withholdings during the year, leading to fines and interest.

Unfiled tax returns occur when a taxpayer fails to submit their required tax return by the deadline, leading to penalties, interest, and IRS enforcement actions.