C- Corporations —
While being owned by shareholders, these are legal business entities that are allowed to own property, incur debts, and file suit in state or federal court. C-Corporations are taxed separately from their shareholders.
Cancellation of Debt Income —
When you take out a loan that is considered a debt that has to be repaid within a specified time frame, the loan is not considered as income. If the repayment of the debt is cancelled, then the loan becomes a taxable form of income.
Certified Public Accountant (CPA) —
Licensed by a state, a CPA is a professional accountant who has completed at least 150 hours of college-level education in a variety of business and accounting subjects, including taxation.
Collateral Agreement —
Prior to accepting an Offer in Compromise, the IRS will often secure a secondary Collateral Agreement to cover your future prospects if they seem likely to happen such as a significant increase in income or a possible inheritance.
Collection Appeal Request (Cap Form 9423) —
When you and an IRS Revenue Officer are in a state of conflict over a specific collection activity taken by the Revenue Officer that seems overly intrusive, this appeal is made to review the action such as an Asset Seizure, the early termination of an Installment Agreement or the unfair Lien on Property that prevents you from refinancing or selling the property to cover your tax debt.
Collection Division —
The organizational arm of the IRS that collects delinquent taxes and secures delinquent tax returns for individuals, businesses, corporations, trusts, or any other entity that owes back taxes to the IRS, including any IRS Revenue Officers who work out of a District Officer or an IRS Service Center. The Service Center Collection Function, the Automated Collection Site, and the Field Collection Function are all part of the Collection Division. The Revenue Officer is employed to effectively collect against any past due accounts or tax liabilities.
Collection Information Statement (CIS) —
The IRS standard financial statements required from individuals and/or self-employed individuals (Form 433-A) and businesses (Form 433-B) that owe IRS taxes, but have indicated an inability to pay the tax liability. The financial statement requires the disclosure of all personal financial information, particularly existing assets, income, liabilities and expenses. IRS Revenue Officers employs these forms to determine the ability to pay in full or by installment agreement or a Currently Not Collectible hardship situation.
Collection Statute of Limitation (Federal) —
IRC Section 6503 places an express limit on the time in which the IRS may collect a tax debt. The Collection Statute ranges from 3 to 10 years from the date of assessment. In certain cases, it can be extended under certain situations.
Community Property —
State law creates a legal community upon marriage between the wife and the husband. All property acquired during the marriage is held as community property, with both the husband and the wife having a one-half interest in the community assets. California is a community property state.
Compliance —
When all taxes are fully paid, all returns filed properly and everything else is up to date with your tax account.
Correspondence Audit —
Done through by mail, this is an audit executed when the IRS sends you a letter either alleging you forgot some item of income or requests to see the documentation to substantiate a deduction you have taken on your tax return. The most common type of correspondence audit is the CP2000 notice, which is a computer-generated notice that you failed to report an item of income.
Current Market Value —
The amount you reasonably could expect to be paid for an asset if you sold it today. You are advised to include a copy of any written estimate of an asset by a professional with your Collection Information Statement.
Currently Non-Collectible —
Currently Non-Collectible, Currently Uncollectible, or CNC is IRS Status 53. Under Status 53, you make no monthly payments to your delinquent tax debt due to minimal income and general economic hardship.
