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.
Treasury Offset Program (TOP)
The Treasury Offset Program (TOP) is a federal program that collects overdue debts by taking money from certain federal payments you might be expecting. It’s important to know about this program to avoid surprises when you receive federal payments.
Unfiled Tax Returns
Unfiled tax returns are tax returns that a taxpayer has failed to submit to the IRS or state tax authority by the due date. Ignoring this responsibility can lead to serious financial and legal consequences.
Willful Neglect
Willful neglect, in tax terms, means intentionally disregarding your tax obligations. This isn't just a simple mistake; it's a deliberate choice that can lead to serious penalties.
Withholding Allowances
Withholding allowances are used to determine how much federal income tax is taken out of your paycheck. Claiming the correct amount can help you avoid owing taxes or getting too big of a refund.