Federal Payment Levy Program (FPLP)
The Federal Payment Levy Program (FPLP) is an IRS tool to collect overdue taxes by taking a portion of certain federal payments you may be due. It's important to understand how it works if you owe back taxes.
Federal Insurance Contributions Act (FICA)
The Federal Insurance Contributions Act (FICA) is a U.S. law that mandates payroll taxes to fund Social Security and Medicare. These taxes are crucial for supporting retirement and healthcare benefits for many Americans.
Accuracy-Related Penalty
An accuracy-related penalty is a charge the IRS might impose if you make errors on your tax return due to negligence or disregard of the rules. It's designed to encourage taxpayers to be careful and accurate when preparing their tax filings.
Backup Withholding
Backup withholding is a type of tax withholding that the IRS requires in specific situations, mainly when taxpayers haven't provided correct taxpayer identification information. It ensures the IRS receives taxes on certain payments.
Barred Refund Claim
A barred refund claim means the IRS will no longer honor your request for a tax refund because it was filed too late. Understanding time limits is crucial for getting your money back.
Certified Mail for IRS Notices
Certified mail provides proof that the IRS sent you an official notice, and importantly, that you received it. This documentation can be vital for protecting your rights and avoiding penalties.
Collection Due Process (CDP) Hearing
A Collection Due Process (CDP) hearing is your opportunity to discuss your tax debt with the IRS and potentially avoid aggressive collection actions. This hearing allows taxpayers to explore options for resolving their tax liabilities before the IRS takes steps like levies or liens.
Earned Income Credit (EIC)
The Earned Income Credit (EIC) is a refundable tax credit designed to help low- to moderate-income workers and families, potentially leading to a larger tax refund or reducing the amount of taxes you owe. It's an important tool to help those who work hard get a little extra help.
Estimated Tax Payments
Estimated tax payments are how self-employed individuals, investors, and others with income not subject to regular withholding pay their income taxes to the IRS throughout the year. They help taxpayers avoid penalties for underpayment of taxes.
Filing Deadline
A filing deadline is the specific date by which you must submit your tax return to the government. Meeting these deadlines is crucial to avoid penalties and interest charges.