Abatement of Penalties —
An abatement of penalties is a request to the IRS or the State Franchise Tax Board to remove certain penalties that were added to your account. The abatement of your delinquent account can be partial or a complete cancellation of all taxes owed. You must be able to provide a reasonable cause why the given agency should remove the penalties from your account.
Accounting Methods —
The methodology by which income and expenses are determined for the purposes of taxation. The first main accounting methodology is the cash method in which income is reported as it is received in the tax year in which the taxes are to be paid. The second main accounting methodology employed is the Accrual Method. If a business maintains an inventory, they are required to use the Accrual Method to detail all purchases and sales made.
ACS High Dollar Unit —
A department of the IRS that is a special collections unit designed to handle cases of back tax liability that range from $100,000 to $999,999 dollars. The ACS High Dollar Unit is divided up into two separate divisions. Based in Buffalo, NY, the first division handles wages and income. Based in Holtsville, NY, the second division handles small businesses and the self-employed.
Amended Tax Return (Form 1040X) —
A tax return filed to make changes to and correct errors on a previously filed tax return. You have 3 years from the due date of the original return or the actual date of filing to file an amended return. Upon filing amended returns, you must have a copy of the original return filed, along with documentation explaining what items need to be amended.
Appeal —
IRS administrative process for you to contest decisions with the Appeals Division of the IRS. Virtually any collection action taken by the IRS is open to appeal.
Asset —
Any item, whether material or virtual, that is considered a valuable property with a cash value that can be liquidated to pay a tax debt. In addition to cash value, an asset also can be considered useful if it has exchange value.
Automated Collection System (ACS) —
For IRS Revenue Officers, the computerized system linked to numerous CRT telephone stations that provides them with a collection process schedule for contacting you by telephone and mail concerning your delinquent tax bill. The main function of the ACS system is to collect on a back tax debt by obtaining full payment of the tax bill.
