Automated Tax Credit - Tax Debt Resolution

Glossary

First-Time Penalty Abatement (FTA)

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.

Installment Agreement (IA)

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.

Levy Release

A levy release is the IRS's action of removing a legal seizure on your property or assets due to unpaid taxes. Understanding this process is key to regaining control of your finances.

Trust Fund Recovery Penalty (TFRP)

The Trust Fund Recovery Penalty (TFRP) is a penalty the IRS may impose on individuals responsible for a business's unpaid payroll taxes. It's important to understand how this penalty works to avoid potentially serious financial consequences.

Wage Garnishment

Wage garnishment is a legal process where a portion of your paycheck is withheld to pay off a debt. It’s crucial to understand how it works and how to prevent it.

Collection Appeal Program (CAP)

The Collection Appeal Program (CAP) is an IRS program that allows taxpayers to appeal certain IRS collection actions, providing a chance to resolve issues before they escalate. It offers a way to challenge a levy, lien, or other collection activity.