Earned Income Tax Credit —
A tax credit provided to qualified low-income wage earners, even if no income tax was withheld from the individual’s earnings.
Enrolled Agent —
An Enrolled Agent (EA) is an authorized tax practitioner who has technical expertise in the field of taxation. Enrolled Agents are empowered by the U.S. Department of the Treasury to represent you for audits, collections, and appeals before the IRS. Enrolled means licensed to practice by the federal government, and Agent means authorized to appear in the place of the taxpayer. Only Enrolled Agents, Tax Attorneys, and CPAs may represent taxpayers before the IRS.
The Enrolled Agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings. An ”Enrolled Agent” (EA) has passed an IRS test covering all aspects of taxation and an IRS background check. Enrolled Agents have passed a two-day, 8-hour examination. The Special Enrollment Examination covers all aspects of federal tax law, including the taxation of individuals, corporations, partnerships, and various regulations governing IRS collections and audit procedures.
The IRS Restructuring and Reform Act of 1998 allow federally authorized practitioners a limited client privilege. This privilege allows confidentiality between you and an Enrolled Agent under certain conditions. The privilege applies when you are being represented in cases involving audits and collection matters.
Equitable Relief —
If you do not qualify for innocent spouse relief or separation of liability, you may qualify for equitable relief. You must show, under all facts and circumstances, that it would be unfair to be held liable for the understatement or underpayment of taxes by your spouse or your ex-spouse.
Equity in Assets —
The different between the current market value of a specific asset and the debt held against the asset.
Estimated Tax Payments —
The amount of tax you expect to owe for a given calendar year after subtracting expected withholdings and the amount of any expected credits.
Examination —
This surprisingly is the official term used by the IRS for any tax audit.
Expenses Not Generally Allowed —
Expenses that you can only claim as a deduction, such as voluntary retirement contributions and private school expenses, if you can that they are necessary for the overall health and welfare of you and your family or for the further production of basic income.
Extreme Financial Hardship —
When you cannot meet your basic living expenses and you are in danger of being placed in dire jeopardy as the result of an IRS collection action, you are considered to be a case of extreme financial hardship.
