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Experienced Experts in IRS Tax Audit Negotiation and Tax Preparation

Glossary

IRS – Internal Revenue Service – The federal agency responsible for administering and enforcing the Treasury Department’s revenue laws, through the assessment and collection of taxes, determination of pension plan qualification, and related activities.

EA – Enrolled Agent – A tax law specialist who passes a Treasury Department tax exam in order to become certified in advising and representing individuals when interacting with the IRS. Enrolled agents can make claims against the government on behalf of taxpayers.

CAF  – Central Authorization File – The area of the Internal Revenue Service where Powers of Attorney and other authorizations for taxpayers are stored.

OIC – Offer in Compromise – An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can’t pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:

ORGANIZERS – Packets of questions regarding a client’s tax, IRS, or business information.  The organizer must be filled before meeting with anybody in the office whether if it’s for a personal, business, or bookkeeping matter.  All signature pages should be signed and all clients should know what they are signing.  Have a look at an organizer to be sure you understand the purpose of it.  A client will more than likely ask you questions regarding the organizer, so you must be prepared.

CLIENT SUCCESS STORY – A single sheet of paper we hand out to our clients to fill out so we may know how we are doing as a business.  After writing out their experience with us, they will initial the document giving us permission to publish their story in the Client Success Binder, on FaceBook, Twitter, Website, or in our Email Campaigns.

CONSENT TO DISCLOSE A TAX RETURN – A Form that is needs to be signed by the taxpayer allowing us to disclose his or her tax return to a third party.  This scanned and saved into DMS for future reference.

ASSESSMENT – The process by which the financial worth of property is determined or the amount at which an item is valued.  The listing and valuation of property for purposes of fixing a tax upon it for which its owner will be liable. The procedure by which the Internal Revenue Service, or other government department of taxation, declares that a taxpayer owes additional tax because, for example, the individual has understated personal gross income or has taken deductions to which he or she is not entitled.

INCOME TAX– A charge imposed by the government on the annual gains of a person, corporation, or other taxable unit derived through work, business pursuits, investments, property dealings, and other sources determined in accordance with the IRS Code or state law.  The United States uses a progressive income tax system. The income tax has its history in the United States dating back to the Civil War. The income tax is so controversial that the United States needed a Constitutional amendment.

INCOME TAX RETURN – An income tax return is a document you file with the Internal Revenue Service or the state tax board reporting your income, profits and losses of your business and other deductions as well as details about your tax refund or tax liability.