40 plain-English definitions
IRS and tax relief glossary
Understand common collection alternatives, enforcement actions, transcript codes, forms, rights, and representation terms. Definitions are educational and are not legal or tax advice.
Showing 40 terms
A
Adjusted gross income (AGI)Gross income after specific adjustments allowed by tax law.AppealAn administrative request for independent IRS review of certain decisions.Assessment dateThe date the IRS formally records a tax liability.Automated Collection System (ACS)The centralized IRS operation that handles many collection accounts by phone and correspondence.
B
C
Collection Due Process (CDP)A hearing right connected with certain levy and federal tax lien notices.Collection statute expiration date (CSED)The date the IRS collection period is expected to expire for a particular assessment.ComplianceBeing current with required tax returns and certain ongoing payment obligations.Currently not collectible (CNC)A temporary IRS collection status used when payment would create financial hardship.
D
E
F
Federal tax lienThe government’s legal claim against property after tax is assessed, demand is made, and payment is not completed.Financial hardshipA condition in which paying tax would prevent reasonable basic living expenses.Form 2848The IRS Power of Attorney and Declaration of Representative form.Form 433-AThe Collection Information Statement for wage earners and self-employed individuals.Form 433-FA shorter Collection Information Statement used in many IRS collection matters.Form 656The IRS form used to submit an offer in compromise.
I
Innocent spouse reliefPotential relief from joint tax liability under specific statutory rules.Installment agreementAn arrangement allowing an IRS balance to be paid over time.IRS account transcriptAn IRS record showing selected transactions, assessments, payments, and account actions for a tax period.IRS noticeA letter or notice communicating an account issue, proposed action, request, or decision.
L
N
O
P
R
S
T
Tax lien releaseThe formal release of a federal tax lien after the legal conditions are satisfied.Tax transcriptAn IRS-generated record summarizing selected return, wage, income, or account information.Taxpayer Advocate Service (TAS)An independent IRS organization that assists eligible taxpayers with unresolved problems and hardship.Tolling eventAn event that suspends or extends a legal time period.Transaction code 150An account-transcript code generally indicating a tax return was filed and a liability was assessed.Transaction code 290An account-transcript code generally used for an additional tax assessment or a zero-dollar adjustment.Transaction code 570An account-transcript code generally indicating an additional account action is pending.Transaction code 971A broad account-transcript code used for miscellaneous actions or notices.Trust Fund Recovery Penalty (TFRP)A personal penalty potentially assessed against responsible persons for unpaid trust-fund taxes.