Reference
Tax glossary
Clear, plain-English definitions of the terms you will run into when dealing with the IRS.
Glossary terms
10 terms
Adjusted Gross Income (AGI)
Tax Filing
Your total gross income minus specific deductions used to determine eligibility for tax benefits.
Read the full definitionAudit
IRS Procedures
An examination of your tax return by the IRS to verify accuracy of reported income and deductions.
Read the full definitionBusiness Expenses
Business Taxes
Ordinary and necessary expenses incurred in operating a business that can be deducted from income.
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Tax Relief
A status that temporarily halts IRS collection activities due to financial hardship.
Read the full definitionInstallment Agreement
Tax Relief
A payment plan that allows taxpayers to pay their taxes over time through monthly payments.
Read the full definitionOffer in Compromise
Tax Relief
An IRS program that allows taxpayers to settle their tax for less than the full amount owed when paying the full liability would create financial hardship.
Read the full definitionPenalty Abatement
Penalties
The removal or reduction of IRS penalties for reasonable cause or first-time penalty relief.
Read the full definitionStandard Deduction
Deductions
A fixed dollar amount that reduces your taxable income, available to taxpayers who don't itemize.
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IRS Procedures
The actual seizure of property by the IRS to satisfy a tax obligation.
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IRS Procedures
A legal claim by the government against a taxpayer's property when they fail to pay tax.
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