IRS Form 433-D: Installment Agreement
IRS Form 433-D is the document you use to request a payment plan (an installment agreement) with the IRS if you owe taxes you can't pay right away. It allows you to pay off your tax debt over time, rather than all at once.
Collection Information Statement (CIS)
A Collection Information Statement (CIS) is a form you might need to fill out when you owe the IRS money you can't pay. It provides the IRS with detailed information about your financial situation to determine the best way for you to handle your tax debt.
IRS Form 1040: U.S. Individual Income Tax Return
IRS Form 1040 is the standard form used by U.S. taxpayers to file their annual individual income tax return. It's how you report your income, claim deductions and credits, and determine if you owe taxes or are due a refund.
IRS Form 1099: Miscellaneous Income
IRS Form 1099-MISC is a form used to report payments made to individuals or businesses who are not employees. Understanding this form is crucial for both businesses making payments and those receiving them.
Reasonable Collection Potential (RCP)
Reasonable Collection Potential (RCP) is the IRS's assessment of your capacity to pay back your tax debt. It plays a crucial role in determining payment plans and settlement options.
Shared Responsibility Payment (SRP)
The Shared Responsibility Payment (SRP) was a penalty for not having qualifying health insurance under the Affordable Care Act (ACA). It's crucial to understand how it worked, especially if you filed taxes during the years it was in effect.
Self-Employment Tax
Self-employment tax is a tax primarily for those who work for themselves, and it covers Social Security and Medicare taxes. Understanding it is crucial for freelancers, contractors, and small business owners.
Statute of Limitations on Tax Debt
The statute of limitations on tax debt is a time limit the IRS has to collect taxes you owe. It's important to know how this works because it can affect your financial obligations.
Tax Adjustment
A tax adjustment is a change made to your initial tax calculation, either increasing or decreasing your tax liability. It's important to understand why adjustments occur and how they can affect you.
Tax Deferment
Tax deferment is a way to postpone paying taxes on income or investment gains until a later date. It can be a useful tool for long-term financial planning.