Glossary

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, 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 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.

A write-off is a reduction in taxable income, often due to expenses or losses. Understanding write-offs can help lower your tax bill.

Back taxes are simply taxes that were not paid when they were originally due. Understanding and resolving back taxes is crucial to avoid penalties and legal issues.

The Collection Statute Expiration Date (CSED) is the deadline by which the IRS must collect taxes you owe. Knowing this date is crucial for managing tax debt.

Currently Not Collectible (CNC) status is a temporary designation by the IRS that can prevent them from actively collecting taxes from you if you demonstrate financial hardship. It provides temporary relief from collection actions.

First-Time Penalty Abatement (FTA) is an IRS program offering a one-time reprieve from certain tax penalties for taxpayers who meet specific criteria. It's a chance to get a clean slate if you’ve made an honest mistake.

Form 433-B is an IRS form businesses use to provide detailed financial information when they owe taxes they cannot pay. It helps the IRS understand the business's ability to pay and helps determine the next steps.

An Installment Agreement (IA) is an arrangement with the IRS that lets you pay your tax debt over time instead of all at once. It helps taxpayers manage their tax liabilities when they can't afford to pay immediately.