Glossary

A municipal lien is a legal claim by a municipality on a property for unpaid property taxes or services. It ensures municipalities recover the funds owed.

A nonrefundable tax credit can reduce a taxpayer’s liability to zero but cannot generate a refund if the credit exceeds the amount of taxes owed.

The IRS files a Notice of Federal Tax Lien (NFTL) to claim legal rights over a taxpayer’s property until the unpaid tax debt is satisfied.

The Notice of Federal Tax Lien (NFTL) is a public document filed by the IRS to inform creditors of the government’s claim to a taxpayer’s property due to unpaid tax

An IRS Offer in Compromise (OIC) allows taxpayers to settle their tax debt for less than the full amount owed based on their financial situation.

A Partial Payment Installment Agreement (PPIA) allows taxpayers to make reduced monthly payments on their IRS tax debt, often settling for less than the full balance.

An IRS Payment Plan allows taxpayers to pay their tax debt in monthly installments over time, helping them manage large tax liabilities.

The Priority of Claims in tax liabilities dictates the order in which debts are paid off, ensuring compliance and protecting creditor rights.

A Property Tax Lien is a legal claim imposed by a government entity on a property for unpaid property taxes. It ensures payment before the property can be sold or

A Public Record Lien is a legal claim by the government or creditor against a taxpayer’s property due to unpaid taxes, affecting property rights and financial stability.

A Quiet Title Action is a legal proceeding to resolve disputes over property titles and establish ownership, often used in tax-related property issues.

A real estate tax lien is a legal claim by a government on a property when the owner fails to pay property taxes, impacting the property’s transferability.

Reasonable cause is a valid explanation, such as illness or natural disaster, that taxpayers can use to request IRS penalty abatement.

Reasonable Collection Potential (RCP) is the IRS’s estimate of how much a taxpayer can pay toward their tax debt through liquid assets and future income.

The Redemption Period is the timeframe allotted for property owners to repay owed taxes to avoid property loss to tax lien purchasers.

A refundable tax credit can reduce a taxpayer’s liability to zero and generate a refund for any amount of the credit that exceeds the taxes owed.

A Revenue Officer is an IRS employee responsible for collecting unpaid taxes and ensuring taxpayer compliance with IRS regulations. Their role is vital for tax enforcement.

Schedule D Form 1040 is a crucial form used to report capital gains and losses for tax purposes.

Schedule D (Form 1040) is used to report capital gains and losses on your tax return.

Schedule D (Form 1040) is a crucial tax form for reporting capital gains and losses on your tax return.