Glossary

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.

A Substitute for Return (SFR) is a tax return the IRS creates on your behalf when you fail to file your own. It's important to understand what this means and how to avoid it.

A CP90 Notice is the IRS's final warning that they intend to seize your assets to pay off your tax debt. This notice also informs you of your right to request a hearing.

The failure to file penalty is a charge by the IRS when you don't submit your tax return on time. Understanding this penalty can help you stay compliant and avoid extra costs.

The failure to pay penalty is a fee the IRS charges when you don't pay your taxes on time. Understanding this penalty can help you avoid unnecessary costs.

Form 1099-C reports when a lender forgives a debt you owe. This forgiveness can be considered taxable income by the IRS.

Form 433-A is an IRS form used to collect detailed financial information from individuals who owe taxes. It helps the IRS determine your ability to pay back your tax debt.

Form 843 is used to request a refund or abatement of certain taxes, penalties, or interest. It's essential for taxpayers who believe they've overpaid or were unfairly penalized.