...

Tax Relief Glossary

  • Tax Relief: Reduction or elimination of taxes owed through various programs and strategies.

  • Tax Reduction: Decrease in the amount of taxes owed, typically achieved through deductions and credits.

  • Audit Representation: Professional assistance provided to represent a taxpayer during an IRS or state income tax audit.

  • Settlement Amount: The negotiated, reduced amount agreed upon by the taxpayer and the IRS to settle the taxpayer’s outstanding debt.

  • Financial Hardship: A condition where a taxpayer is unable to meet basic living expenses, leading to temporary relief from tax collection efforts by the IRS.

  • Payment Plan: A structured arrangement allowing taxpayers to pay their tax debt in manageable monthly installments over a specified period.

  • Employment Tax: Taxes that employers are legally obligated to withhold or pay on behalf of their employees, including income tax, Social Security, and Medicare taxes.

  • Withholding Tax: A tax required to be withheld by buyers on the sale of U.S. real property interests by a foreign person.

  • Trust Fund Penalty: A penalty assessed against business owners or officers for failing to properly remit payroll taxes withheld from employees’ wages to the government.

  • Property Lien: A legal claim or encumbrance against a taxpayer’s property, imposed to secure payment of taxes owed.

  • Asset Seizure: The legal process by which the IRS or other tax authority takes possession of a taxpayer’s property to satisfy unpaid tax debts.

  • Income Withholding: A legal procedure where a portion of an employee’s earnings is withheld by the employer and directly paid to the debt creditor.

  • Reduced Payment Plan: An agreement allowing taxpayers to make monthly payments that are less than the full amount of tax owed.

  • Tax Evasion Defense: Legal representation and defense services provided for individuals or entities facing criminal charges by the IRS for tax-related offenses.

  • Offer in Compromise: A program allowing taxpayers to settle their tax debt for less than the full amount owed.

  • Back Taxes: Taxes that are overdue and remain unpaid.

  • Tax Compliance: Adherence to tax laws and regulations, including timely filing of returns and payment of taxes.

  • Tax Fraud: Intentional wrongdoing with the specific purpose of evading a tax owed.

  • Tax Resolution: Services aimed at resolving tax issues such as unpaid taxes, audits, and tax debts.

  • Levy: A legal seizure of property or assets to satisfy a tax debt.

  • IRS (Internal Revenue Service): The federal agency responsible for administering and enforcing the internal revenue laws.

  • Installment Agreement: A payment plan arranged between a taxpayer and a tax authority to pay back taxes in installments over time.

  • Penalty Abatement: Reduction or removal of penalties charged on unpaid tax debts.

  • Tax Advocate: A professional who assists taxpayers in resolving issues with tax authorities.

  • Tax Return: A form filed with a tax authority that reports income, expenses, and other relevant financial information.

  • Wage Garnishment: A court order directing an employer to withhold a certain amount from an employee’s wages to repay a debt.

  • Filing Status: Classification of a taxpayer’s marital and family situation, which determines the rate at which income is taxed.

  • Compromise Agreement: A settlement between a taxpayer and a tax authority where the taxpayer agrees to pay a lesser amount than what is owed.

  • Interest Abatement: Reduction or removal of interest charged on unpaid tax debts.

  • Garnishment: A legal process where money is automatically deducted from a person’s wages or bank account to pay a debt.

  • Currently Not Collectible: A status granted by the IRS when a taxpayer is unable to pay their tax debt due to financial hardship.

  • Payroll Tax: Taxes imposed on employers or employees, usually calculated as a percentage of the salaries that employers pay their staff.

  • FIRPTA (Foreign Investment in Real Property Tax Act): U.S. tax law requiring a buyer to withhold income tax on the sale, exchange, or other disposition of U.S. real property interests by a foreign person.

  • Trust Fund Recovery Penalty Resolution: A service aimed at resolving penalties assessed against business owners or officers for failing to properly pay payroll taxes.

  • Tax Liens: A legal claim against a taxpayer’s property as security for the payment of taxes.

  • Partial Payment Installment Agreement: An agreement with the IRS allowing taxpayers to make monthly payments on their tax debt that are less than the full amount owed.

  • IRS Criminal Defense: Legal representation and defense services provided to individuals or entities facing criminal charges by the IRS for tax-related offenses.

  • Tax Evasion: The illegal act of not paying taxes owed by providing false information or hiding income.

  • Taxable Income: The amount of income used to calculate an individual’s or a company’s income tax due.

  • Tax Deduction: An expense that can be subtracted from a taxpayer’s gross income to reduce the amount of income that is subject to tax.

  • Tax Credit: A dollar-for-dollar reduction in the tax owed, providing a savings to a taxpayer.

  • Tax Exemption: A provision in the law that reduces or eliminates a taxpayer’s obligation to pay tax.

  • Tax Bracket: A range of incomes taxed at a given rate.

  • Tax Withholding: The amount of an employee’s pay withheld by the employer and sent directly to the government as partial payment of income tax.

  • Tax Liability: The total amount of tax debt owed by an individual, corporation, or other entity to a taxing authority.

  • Tax Assessment: The determination of the tax liability of a taxpayer by the appropriate taxing authority.

  • Tax Year: The 12-month period for which tax amounts are calculated.

  • Taxpayer Identification Number (TIN): A unique number assigned to individuals and businesses for tax purposes.

Your Partner Comprehensive Tax Solutions.

Ready to take the first step toward financial relief? Contact Brightside Tax Relief today to schedule your free consultation. Let us guide you on the path to tax solutions and financial security. Together, we'll illuminate the way to a brighter financial future.