Glossary

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 Taxpayer Advocate Service (TAS) is an independent organization within the IRS dedicated to assisting taxpayers dealing with unresolved issues and ensuring fair treatment.

The Taxpayer Identification Number (TIN) is a critical identification tool for individuals and entities in the U.S. tax system, facilitating tax reporting and compliance.

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.

Unfiled tax returns can lead to IRS penalties, interest, and enforcement actions, including substitute returns, liens, and levies.

A voluntary lien is a secured claim voluntarily agreed upon by the property owner, typically for loans, significantly impacting tax and financial obligations.

A W-4 form allows employees to inform their employer of how much federal income tax should be withheld from their paycheck based on their filing status and dependents.

IRS wage garnishment is a collection action that allows the IRS to take a portion of your wages directly from your employer to satisfy unpaid tax debt.

A wage levy allows the IRS to garnish a portion of your paycheck to collect unpaid tax debt, continuing until the debt is paid or resolved.

A Water and Sewer Lien is a legal claim on a property due to unpaid water and sewer charges, affecting property transactions and creditworthiness.