What Is “Tax levy”?
05/28/2026
What Is a Tax Levy? A tax levy is a legal seizure of your property or assets by the IRS to satisfy a tax debt. It is the actual action the government takes to collect money you owe after previous attempts to resolve the debt have failed. 1. Meaning of “Tax levy” In plain English,
What Is “ Tax examination ”?
05/28/2026
What Is “ Tax examination ”? A tax examination is the formal process the IRS uses to review a tax return and ensure that all income, expenses, and credits have been reported accurately. While commonly referred to as an “audit,” it is essentially a verification procedure to confirm that a taxpayer is in compliance with
What Is “Tax Court”?
05/28/2026
What Is the U.S. Tax Court? The United States Tax Court is a federal “pre-payment” court where taxpayers can dispute tax deficiencies determined by the IRS before they actually pay the disputed amount. It is an independent judicial body, not part of the IRS, that specializes specifically in resolving federal income tax disputes. 1. Meaning
What Is a “Tax Court petition”?
05/28/2026
What Is a Tax Court Petition? A Tax Court petition is a formal legal document filed by a taxpayer to start a case in the United States Tax Court. It is the official way to challenge an IRS “Notice of Deficiency” or other specific determinations before you are required to pay the disputed tax amount.
What Is “Tax classification”?
05/28/2026
What Is Tax Classification? Tax classification is the category the IRS assigns to a business to determine which tax rules apply and which forms must be filed. While you choose a legal structure—like an LLC or a corporation—at the state level, your tax classification tells the federal government how to treat your income. Essentially, it
What Is “Tax assessment”?
05/28/2026
What Is “Tax assessment”? A tax assessment is the official recording of a tax liability on the books of the IRS. It is the formal act of establishing the exact amount of tax, penalties, and interest that a taxpayer owes the government for a specific period. 1. Meaning of “Tax assessment” In plain English, a
What Is “ Substitute for return ”?
05/28/2026
What Is a Substitute for return? A Substitute for Return (SFR) is a federal tax return that the IRS prepares on your behalf if you fail to file one yourself. The IRS uses information reported by third parties—like your employer or your bank—to calculate your tax liability, but they rarely include the deductions or credits
What Is “Substantial understatement penalty”?
05/28/2026
What Is “Substantial understatement penalty”? A substantial understatement penalty is a charge the IRS adds to your tax bill if the amount of tax you reported on your return is significantly less than the amount you actually owe. It is a specific type of accuracy-related penalty that usually equals 20% of the underpaid tax amount.
What Is “ Statutory exception ”?
05/28/2026
What Is a Statutory Exception? A statutory exception is a specific provision written into the tax law that excuses a taxpayer from a requirement, tax, or penalty that would normally apply. Because these exceptions are created by Congress and documented in the Internal Revenue Code, they are considered a legal right rather than a discretionary
What Is “Statutory employee”?
05/28/2026
What Is a Statutory Employee? A statutory employee is a unique category of worker who is technically an independent contractor but is treated as an employee for certain tax purposes by law. This hybrid status allows the worker to have Social Security and Medicare taxes withheld by their employer while still retaining the right to