What Is “ Limited liability company ”?
05/28/2026
A Limited Liability Company (LLC) is a legal business structure registered at the state level that protects business owners from personal liability for company debts or lawsuits. For tax purposes, the IRS does not recognize an LLC as a separate classification, meaning profits and losses automatically flow through to the owners’ personal tax returns. This
What Is “ Late payment penalty ”?
05/28/2026
A late payment penalty, officially known by the IRS as the “failure-to-pay penalty,” is a fee charged when you do not pay the tax amount shown on your return by the original due date. It is calculated as a percentage of the unpaid taxes for each month, or part of a month, that the balance
What Is “Late filing penalty”?
05/28/2026
What Is “Late filing penalty”? A late filing penalty, also known as the failure-to-file penalty, is a fee charged by the IRS when you do not submit your tax return by the required deadline. It is usually calculated as a percentage of the taxes you owe for each month or part of a month that
What Is “IRS seizure”?
05/28/2026
What Is an IRS Seizure? An IRS seizure is the legal process where the government physically takes and sells your property—such as your car, boat, or real estate—to pay off an outstanding tax debt. It is considered one of the most aggressive collection actions and is typically used only as a last resort when other
What Is “IRS penalty”?
05/28/2026
What Is an IRS Penalty? An IRS penalty is an additional fee charged by the Internal Revenue Service when a taxpayer fails to comply with tax laws, such as filing a return on time or paying the correct amount of tax. These charges are added to your existing tax balance and can grow significantly over
What Is “ IRS notice ”?
05/28/2026
What Is an IRS Notice? An IRS notice is an official letter sent by the Internal Revenue Service to a taxpayer, usually via the U.S. Postal Service. It is the primary way the agency communicates regarding your tax account, whether to confirm a change, request more information, or notify you of a balance due. 1.
What Is “ IRS letter ”?
05/28/2026
What Is an IRS Letter? An IRS letter is a formal piece of correspondence sent by the Internal Revenue Service to a taxpayer regarding a specific issue, request for information, or notification about their tax account. Unlike general notices, letters are often more personalized and are usually identified by a “Letter” number followed by a
What Is “ IRS audit ”?
05/28/2026
What Is an IRS Audit? An IRS audit is a formal review of an individual’s or business’s tax return and financial records to ensure that all income, expenses, and credits have been reported accurately. It is a verification process used by the government to confirm that the taxpayer has complied with tax laws and paid
What Is “ IRS collection ”?
05/28/2026
What Is IRS Collection? IRS collection is the multi-step process the government uses to gather unpaid taxes once a debt has been officially recorded on your account. It begins with a series of written notices and can eventually lead to legal actions like seizing assets or placing claims on your property if the balance remains
What Is “IRS Appeals”?
05/28/2026
What Is IRS Appeals? IRS Appeals is an independent organization within the Internal Revenue Service designed to help taxpayers resolve disputes without going to tax court. It acts as a neutral third party that reviews your case to ensure the law is applied fairly and to reach a settlement that works for both you and