What Is “Common-law employee”?
05/28/2026
What Is a Common-law Employee? A common-law employee is anyone who performs services for an employer if the employer has the legal right to control both what work is done and how it is performed. This status depends on the level of control the business has over the worker’s daily activities, regardless of what their
What Is “ Collection statute expiration date ”?
05/28/2026
The Collection Statute Expiration Date (CSED) is the legal deadline by which the IRS must finish collecting an unpaid tax debt. Generally, the IRS has exactly ten years from the date a tax is assessed against you to collect the money. Once this specific date passes, the debt legally expires, and the IRS loses its
What Is the “Collection Appeals Program”?
05/28/2026
What Is the Collection Appeals Program (CAP)? The Collection Appeals Program (CAP) is a fast-track process that allows taxpayers to challenge specific IRS collection actions like liens, levies, or seizures. It is designed to provide a quick review of your case by the IRS Independent Office of Appeals, often resolving disputes much faster than other
What Is “ Collection ”?
05/28/2026
What Is Collection? IRS collection is the legal process the government uses to gather unpaid tax debts after they have been officially recorded on your account. It begins with a series of mailed notices and can escalate to more serious actions, such as taking money from your bank account or placing a claim on your
What Is “CNC status”?
05/28/2026
What Is “CNC status”? CNC status stands for “Currently Not Collectible.” It is a designation assigned by the IRS to taxpayers who are experiencing a significant financial hardship and cannot afford to pay their tax debt while meeting basic living expenses. 1. Meaning of “CNC status” In plain English, CNC status is a temporary “pause”
What Is “ Claim for refund ”?
05/28/2026
A claim for refund is a formal request you submit to the IRS to get your money back when you have overpaid your taxes. You usually make this claim simply by filing your annual tax return or by filing an amended return if you discover a mistake later. In short, it is the official way
What Is “Civil fraud penalty”?
05/28/2026
What Is “Civil fraud penalty”? A civil fraud penalty is the most severe financial penalty the IRS can impose on a taxpayer for underpaying their taxes with the specific intent to evade the law. It is a steep fine—typically 75% of the underpayment—charged when the government can prove that errors on a tax return were
What Is “Check-the-box election”?
05/28/2026
What Is “Check-the-box election”? A check-the-box election is a process that allows certain business entities to choose how they want to be classified for federal tax purposes. Instead of being forced into a default tax category, the business simply “checks a box” on an IRS form to select its preferred tax status. This election is
What Is “Chart of accounts”?
05/28/2026
What Is a Chart of Accounts? A chart of accounts (COA) is an organized index of every financial category a business uses to track its money. It serves as the master list that tells you exactly where to “file” every transaction so that your financial reports and tax returns are accurate. 1. Meaning of “Chart
What Is “Charitable contribution by business”?
05/28/2026
What Is a Charitable Contribution by Business? A charitable contribution by a business is a donation of cash, equipment, or other assets made to a qualified non-profit organization. For tax purposes, these gifts are handled differently depending on how your business is legally structured, often serving as a deduction that reduces your total tax bill.