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.
Levy
A tax levy is a legal seizure of your property to satisfy an unpaid tax debt. It's a serious action taken by the IRS, so it's important to know how it works.
Payment Plan
A tax payment plan is an agreement with the IRS (or your state tax agency) to pay off your tax debt over time, rather than in one lump sum. It can be a helpful solution if you can’t afford to pay your taxes in full right away.
Reasonable Cause
Reasonable cause is a valid justification that can excuse a taxpayer from penalties. It essentially means you had a good reason for not meeting your tax obligations.
Tax Court
Tax Court is a specialized court that handles disputes between taxpayers and the IRS. It provides a formal setting to challenge IRS tax determinations.
Tax Lien
A tax lien is a legal claim against your property for unpaid taxes. It's important to understand tax liens to protect your assets.
Tax Levy
A tax levy is a legal seizure of your property by the IRS to satisfy unpaid taxes. It's a serious action the IRS takes when other collection methods fail.