Glossary

Tax Lien Withdrawal

0:00 0:00

100

A tax lien withdrawal occurs when the IRS removes the Notice of Federal Tax Lien from public records. This action effectively cancels the lien, allowing the taxpayer to regain control over their property and financial standing. A lien withdrawal can help improve a taxpayer’s credit and ability to sell or refinance property.

Taxpayers can request a lien withdrawal under specific circumstances, such as:

Entering into a Direct Debit Installment Agreement.
Paying the full tax debt and demonstrating compliance with tax obligations.
Proving that the lien was filed in error or that its withdrawal is in the best interest of both the taxpayer and the government.

Unlike a lien release, which indicates the debt has been satisfied, a lien withdrawal removes the public record of the lien, making it easier for taxpayers to manage their finances and avoid the negative effects on credit.

Recommendation

IRS Form 941: Employer’s Quarterly Federal Tax Return

IRS Form 941 is filed quarterly by employers to report wages, tax withholdings, and payments for Social Security and Medicare taxes.

Form 1041-A – U.S. Information Return – Trust Accumulation of Charitable Amounts

Form 1041-A is used for reporting trust accumulation of charitable amounts.

Form 8899 – Notice of Income From Donated Intellectual Property

An overview of Form 8899 focusing on income from donated intellectual property for tax purposes.

Willful Tax Evasion

Willful tax evasion is the deliberate and intentional act of avoiding taxes through illegal means, such as hiding income or falsifying documents, leading to severe penalties.

Form 1095-A – Health Insurance Marketplace Statement (noted under health forms but critical here)

Form 1095-A is a crucial health insurance marketplace statement for tax purposes.

Uncollectible Status (Currently Not Collectible)

Currently Not Collectible (CNC) status is a designation that temporarily stops IRS collection actions for taxpayers unable to pay their tax debt.

Form 6765 – Credit for Increasing Research Activities

An in-depth look at Form 6765 – Credit for Increasing Research Activities and its importance in tax compliance.

Tax Forgiveness for the Deceased

Tax forgiveness for the deceased may relieve some tax liabilities if a taxpayer dies with unpaid taxes, though the estate is generally responsible for the debt.

Collection Information Statement (CIS)

A Collection Information Statement (CIS) is a financial disclosure form that taxpayers submit to the IRS when requesting payment plans or other tax relief options.

Form 8826 – Disabled Access Credit (reiterated for business-related credits)

Form 8826, also known as the Disabled Access Credit, is a tax credit available to businesses that incur expenses related to providing access for individuals with disabilities.