Automated Tax Credit - Tax Debt Resolution

Glossary

Reasonable Reliance on Advisor

Reasonable Reliance on Advisor refers to a taxpayer's trust in professional tax advice, which can sometimes mitigate penalties in case of errors.

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.

Penalty Relief for Underpayment

Penalty relief for underpayment offers taxpayers a way to reduce or eliminate penalties incurred from underpaying their taxes. Understanding its application is key to effective tax management.

IRS Form 656-L Offer in Compromise

Form 656-L is an IRS form used to dispute tax liabilities when there's a doubt regarding the accuracy of the assessed amount, providing a pathway for taxpayers to settle their debts.

Accuracy Penalty Abatement Request

An Accuracy Penalty Abatement Request is a formal appeal to reduce or eliminate penalties assessed for inaccuracies on a tax return. It is crucial for resolving tax disputes and maintaining financial compliance.

Penalty Appeal Submission Form

The Penalty Appeal Submission Form is an essential tool for taxpayers to contest IRS-imposed penalties, providing a structured process to appeal and resolve disputes.

IRS Notice of Determination

The IRS Notice of Determination is a critical communication from the IRS that informs taxpayers of the outcome of their appeal or request concerning tax matters. Understanding this notice is crucial for effective tax resolution.

Reasonable Reliance Defense

The Reasonable Reliance Defense is a tax-related legal argument used by taxpayers to avoid penalties, asserting they relied on a qualified tax advisor's guidance in good faith.

Fraudulent Failure-to-File Penalty

The Fraudulent Failure-to-File Penalty is imposed by the IRS when a taxpayer intentionally fails to file a tax return to evade taxes. This penalty is severe due to the fraudulent intent.