Glossary

Tax Levy Release

0:00 0:00

100

A tax levy release is a formal process that stops the IRS from seizing a taxpayer’s assets to collect unpaid taxes. When the IRS issues a levy, they may seize property such as bank accounts, wages, or even real estate. A levy release provides temporary relief and allows the taxpayer to resolve their debt without losing assets.

To obtain a tax levy release, taxpayers must:

Pay the full tax debt.
Enter into an Installment Agreement or submit an Offer in Compromise.
Prove that the levy is causing financial hardship.

A levy release does not eliminate the tax debt but stops the immediate seizure of assets, giving the taxpayer time to negotiate a payment plan or other resolution with the IRS.

Recommendation

Form W-2G – Certain Gambling Winnings

Form W-2G is used to report gambling winnings to the IRS for tax purposes.

Form 1099-G – Certain Government Payments (agricultural subsidies and grants)

Form 1099-G is used to report certain government payments like agricultural subsidies and grants for tax purposes.

CP523 Notice: Defaulted Installment Agreement

IRS CP523 Notice alerts taxpayers that their installment agreement is in default, with instructions to prevent levies or liens.

Form 5695 – Residential Energy Credits (highlighted again for energy tax benefits)

Form 5695 is a tax form used to claim residential energy credits which can help taxpayers save money while promoting energy efficiency.

CP23 Notice

The CP23 notice notifies taxpayers of discrepancies between their estimated tax payments reported and those in the IRS’s records, which may result in a balance due.

Form 8884 – New York Liberty Zone Business Employee Credit

Exploring Form 8884 – New York Liberty Zone Business Employee Credit, a tax form offering credits to businesses in designated areas.

Form 8862 – Information to Claim Certain Credits After Disallowance

Form 8862 is crucial for claiming tax credits after disallowance, ensuring compliance and maximizing tax benefits.

Tax Lien

A tax lien is a legal claim placed by the IRS on a taxpayer’s property, giving the government the right to collect unpaid taxes from the property’s value.

Form 1120-C – U.S. Income Tax Return for Cooperative Associations

Form 1120-C is a tax return form tailored for Cooperative Associations, outlining income details and ensuring compliance with U.S. tax laws.

Form 3800 – General Business Credit (highlighted previously for business owners)

A comprehensive guide to Form 3800 – General Business Credit for business owners.