Tax Relief Terms

ACS - Automated Collection System

IRS call centers that are an integral part of the Collections division.

AET - Asset Equity Table

Typically included in the IRS’ response to an Offer in Compromise, the AET breaks down the Service’s view of the asset portion of the taxpayer’s Reasonable Collection Potential.

ASED - Assessment Statute Expiration Date

The last date the IRS can assess a tax liability to a taxpayer.

CAP - Collection Appeals Program

Form 9423 may be used when a taxpayer disagrees with an IRS action or proposed action.

CAWR - Combined Annual Wag Reporting unit

The IRS Unit we work with when a business client has a IRC 6721 Civil Penalty.

CDP - Collection Due Process appeal

IRS Appeal commonly used when a taxpayer doesn’t agree with a Final Notice of Intent to Levy.

CIS - Collection Information Statement (433-F, 433-A, 433-A (OIC), 433-B)

Important forms when attempting to resolve a back-tax liability with the IRS.  They help to determine a taxpayer’s Reasonable Collection Potential (RCP).

CivPen - Civil Penalty

Common Civil Penalties in tax resolution are:

• Civil Penalty 6672 – originating from the Trust Fund Recovery Penalty
• Civil Penalty 6721 – originating from a discrepancy between the W2s and 941s for a given year

CNC - Currently Not Collectible (Status 53, Uncollectible)

A great resolution option, if you qualify.  The IRS doesn’t expect a payment toward the back-taxes if you maintain current tax compliance.  CNC status is typically reviewed every 2 years.

COD - Certificate of Discharge of Federal Tax Lien

A lien discharge can be useful when you owe taxes and want to sell an asset.

CSED - Collection Statute Expiration Date

The last date the IRS can collect a tax liability.

DDIA - Direct Debit Installment Agreement

Monthly payment plan in which the payment is taken directly from the taxpayer’s bank account by the IRS.

EFTPS - Electronic Funds Transfer Payment System

System for taxpayers to make payments to the IRS.  Employers must use this system to make federal tax deposits.

ES - Estimated Tax Payment

Payments made in advance of an individual’s actual tax return filing and payment due date.

FUTA - Federal Unemployment Tax Act

940 Unemployment tax paid by employers on payroll.

FTA – First-Time Abatement

Penalty abatement allowed by the IRS on certain types of penalties if a taxpayer has a clean record for the three previous years.

FTD - Federal Tax Deposit (employment/payroll tax deposit)

Payment made by employers to the IRS to pay payroll taxes.

FTD - Failure to Deposit

Penalty assessed to employers by the IRS for failing to deposit employment taxes.

FTF - Failure to File

Penalty assessed to taxpayers by the IRS for failing to timely file a tax return.

FTP - Failure to Pay

Penalty assessed to taxpayers by the IRS for failing to pay taxes on time and in full.

IA - Installment Agreement

IRS allowed monthly payment plan for taxpayers to satisfy a back-tax debt over time.

IRC - Internal Revenue Code

Tax law

IRM - Internal Revenue Manual

Instructions to IRS employees on how to implement the Internal Revenue Code.

NFTL: Notice of Federal Tax Lien

IRS form 668-Y is used by the IRS to file a tax lien with the County Recorder’s office and Secretary of State.

OIC - Offer in Compromise

If you qualify, the IRS will settle your tax debt for less than the full amount owed.

PPIA - Partial Payment Installment Agreement

Kind of like a cross between the Offer in Compromise and the Installment Agreement.  A monthly payment to the IRS less than the amount that would full pay your tax liability in the time the IRS must collect it.

Pending Installment Agreement Status

Provides protection from enforced IRS collection actions, such as levies and seizures, while the IRS reviews your request for a formal Installment Agreement to pay your back taxes.

RCP - Reasonable Collection Potential

The amount the IRS determines you or your business can pay based on the Collection Information Statement forms 433-F, 433-A and 433-B.

RO - Revenue Officer

Front line collection employees of the IRS, typically assigned to employment tax cases and high dollar income tax cases.

SB/SE - Small Business/Self-Employed
 
Primary IRS field units.  Home to Revenue Officers of the IRS Collection Division .

TAS - Taxpayer Advocate Service

A group, separate from the IRS, that can often help taxpayers that are experiencing a hardship due to an IRS action.  Taxpayer Advocate may also help you avoid a hardship that will be caused by a proposed action by the IRS, if you get them involved before it happens.

TFRP - Trust Fund Recovery Penalty

The portion of an IRS employment tax liability that the IRS can collect from the Responsible individuals of the company.

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