Shared Responsibility Payment (SRP)
The Shared Responsibility Payment (SRP) was a penalty for not having qualifying health insurance under the Affordable Care Act (ACA). It's crucial to understand how it worked, especially if you filed taxes during the years it was in effect.
Self-Employment Tax
Self-employment tax is a tax primarily for those who work for themselves, and it covers Social Security and Medicare taxes. Understanding it is crucial for freelancers, contractors, and small business owners.
Statute of Limitations on Tax Debt
The statute of limitations on tax debt is a time limit the IRS has to collect taxes you owe. It's important to know how this works because it can affect your financial obligations.
Tax Adjustment
A tax adjustment is a change made to your initial tax calculation, either increasing or decreasing your tax liability. It's important to understand why adjustments occur and how they can affect you.
Tax Deferment
Tax deferment is a way to postpone paying taxes on income or investment gains until a later date. It can be a useful tool for long-term financial planning.
Tax Forgiveness
Tax forgiveness, also known as tax debt relief, offers ways for some taxpayers to reduce or eliminate their tax debt. It's not automatic, and it often depends on your specific financial situation and ability to pay.
Financial Hardship
Financial hardship refers to a situation where someone struggles to meet their basic financial obligations. Understanding what constitutes financial hardship is important for accessing potential tax relief programs.
First-Time Abatement (FTA)
The First-Time Abatement (FTA) is an IRS program that provides penalty relief for taxpayers who have a clean tax history but made an error resulting in penalties. This program can offer a fresh start to those who unintentionally made a mistake.
Fraud Penalty
A fraud penalty is a severe consequence imposed by the IRS when taxpayers intentionally try to cheat on their taxes. It's much more serious than a simple mistake.
IRS Notice CP2000: Underreported Income
An IRS Notice CP2000 indicates the IRS believes you didn't report all your income. It's important to understand this notice and respond correctly.