The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns. The form contains sections that require…

A simplified version of the 1040 form for individual income tax. To be eligible to use a 1040A form, an individual must fulfill certain requirements such…

The 1040EZ is an alternative to the Internal Revenue Service’s (IRS) 1040 income tax form and offers a faster and easier way to file taxes, meant for…

An income tax return that is prepared by computer in a three column "answer-sheet" format. It only prints the bottom line number, dollar amount, and…

A plan set up by an employer to help employees fund their retirement. The 408(k) plan is a simplified version of the popular 401(k) plan but is intended…

A subsection under the United States Internal Revenue Code. The subsection relates to non-profit organizations and tax law and identifies which nonprofit…

An IRS notice sent after an audit stating that there was a discrepancy or error within an individuals taxes and they will be assessed unless petitioned…

In general, a decrease in the amount of taxation faced by an individual or company.Examples of an abatement include a tax decrease, a reduction in penalties, or a rebate.

An investment scheme that claims to reduce income tax without changing the value of the user's income or assets. Abusive tax shelters serve no economic…

Система амортизации представлена согласно Налоговый Акт Восстановления Экономики от 1981 года. ACRS вводился временно на период восстановления экономики…

A tax imposed by the federal government upon companies with retained earnings deemed to be unreasonable and in excess of what is considered ordinary…

A tax based on the assessed value of real estate or personal property. Ad valorem taxes can be property tax or even duty on imported items. Property ad…

A refundable credit that can be claimed by taxpayers who are ineligible to claim the full non-refundable child tax credit, because it exceeds their total…

An income tax term that refers to the change in an asset's book value resulting from improvements, new purchases, sales, payouts or other factors. An…

A measure of income used to determine how much of your income is taxable. Adjusted gross income (AGI) is calculated as your gross income from taxable…

A per-child tax credit for adopting a child under 18. The limit is higher if it's determined that the adopted child has special needs.

A contribution made to any designated retirement or any other account after taxes has been deducted from an individual's or companies taxable income…

The amount of money that an individual or company has left over after all federal, state and withholding taxes have been deducted from taxable income…

The return on an investment including all income received and capital gains, calculated by taking expected or paid income taxes into account. Generally…

Any person who is not a citizen of the country in which he or she lives. Aliens are not given the same rights as the citizens of the country in which they live.

A depreciation schedule with a straight-line recovery period that generally mirrors the class life of the asset's depreciation. Taxpayers who elect to…

A non-refundable tax credit awarded to taxpayers who use non-alcohol alternative fuels that are either sold commercially by the taxpayer or used in the…

A tax calculation that adds certain tax preference items back into adjusted gross income. Alternative minimum tax (AMT) uses a separate set of rules to…

A tax credit given to individuals who purchase vehicles that derive their power from alternative energy sources. Taxpayers are eligible to receive this…

A return filed in order to make corrections to a tax return from a previous year. It can be used to correct errors and claim a more advantageous filing…

Legislation that became effective in October of 2004, which is designed to benefit domestic manufacturers, multinational corporations and other entities…

A tax term referring to the excess premium paid over and above the face value of a bond. Depending on the type of bond, the premium can be tax deductible…

A tax term relating to the practice of deducting the cost of an investment in a qualifying non-tangible asset over the projected life of the asset. The…

The gain or loss resulting from a sale of an asset. The amount realized encompasses all forms of compensation, including cash, the value of any property…

The amount of capital gain/loss that must be reported on the taxpayer's tax return in any given year. The amount recognized refers to the tax implications…

A method through which a taxpayer may reduce or eliminate any estimated tax underpayment penalty owed. The annualized income installment method calculates…

A rate of return for a given period that is less than one year, but that is computed as if the rate were for a full year. The annualized rate is essentially…

A conference that a taxpayer can request with the Internal Revenue Service (IRS) during the audit process if the taxpayer disagrees with the results of…

The interest rate published by the U.S. Treasury to calculate imputed interest charges. The taxman will always get you! This is the rate used by the…

Dollar value assigned to property for purposes of assessing taxes. You may be familiar with assessed valuation because it is used to determine the value…

A local government official who determines the value of a property for taxation purposes. Assessors are trained to determine the fair market value of…

An elective accounting method established by the Internal Revenue Code for tangible assets placed into service after 1970. Prior to the ADR system, there…

Tax laws limiting the amount of losses an investor (usually a limited partner) can claim. Only the amount actually at risk can be deducted.For example…

The order of payment of the attorney fees from one party to another party. In the U.S., each party in a legal case typically pays for his/her own attorney…

A set of rules created by Canada Revenue Agency (CRA) that prevents investors from transferring assets between family members with the intention of avoiding…

1. An unbiased examination and evaluation of the financial statements of an organization. It can be done internally (by employees of the organization)…

A way of calculating cost basis when figuring out gains or losses from a sale of mutual fund shares. This is done by adding up the number of shares owned…

A costing method by which the value of a pool of assets or expenses is assumed to be equal to the average cost of the assets or expenses in the pool…

The IRS criteria used to establish whether or not you are within commuting distance from home. If you work away from home for longer than a normal workday…

Taxes that have been unpaid in the year that they were due. Taxpayers can have unpaid back taxes at the federal, state and/or local levels. Back taxes…

Dating any document by a date earlier than the one on which the document was originally drawn up. Under most circumstances, backdating is seen as fraudulent…

Tax that is levied on investment income, at an established tax rate, as the investor withdraws it. Backup withholding helps to ensure that government…

Any person in charge of organizing and collecting contributions to political parties or funds gathered for political reasons. These contributions may…

Many banks charge nominal fees for various services, such as requesting a deposit slip or counter check or notarizing a document. Bank fees generally…

A form of life insurance purchased by banks where the bank is the beneficiary, and/or owner. This form of insurance is a tax shelter for the administering…