Glossary

IRS Letter 3172 is a formal notification that the IRS has filed a federal tax lien against your property. This letter also informs you of your right to request a hearing about the lien.

Form 4868 is an IRS form that allows you to request an automatic extension of time to file your individual income tax return. This doesn't give you extra time to pay, just extra time to file.

IRS Form 940 is used by employers to report their annual federal unemployment (FUTA) tax liability. This form helps fund unemployment benefits for workers who have lost their jobs.

IRS Form 944 is an annual tax form that certain small employers use to report their federal employment taxes. It simplifies the process for very small businesses with low tax liabilities.

A Federal Tax Deposit (FTD) is how businesses pay certain federal taxes. It’s a key part of staying compliant with IRS rules.

An IRS Notice of Deficiency is a formal letter from the IRS stating that they believe you owe additional taxes. Understanding this notice is crucial for protecting yourself and your assets.

A tax levy is a legal seizure of your property by the IRS to pay off your overdue tax debt. It's a serious action and understanding it is key to protecting your assets.

A lien is a legal claim against your property, acting as security for a debt. It's important to understand liens as they can affect your ability to sell or refinance your assets.

An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS that allows the taxpayer to resolve their tax debt for a lower amount than what they initially owe. It's a powerful tool, but it's not for everyone.

A Partial Payment Installment Agreement (PPIA) is an option from the IRS for taxpayers who can't afford to pay their full tax debt but can make some payments each month. It allows you to manage your tax liability with more manageable monthly amounts.