Glossary

A reduction of an assessed civil penalty. The IRS may approve an abatement of a penalty for: IRS error; reasonable cause; administrative and collection costs not warranting collection of penalty; discharge of penalty in bankruptcy; and the IRS’s acceptance of partial payment of assessed penalty.

A case of disputed interest on tax deficiencies or payments in which IRS error or delays may have contributed to the assessed interest.

AICPA committee whose objective is to develop, on a continuing basis, procedures and standards of reporting by CPAs on the types of accounting and review services a CPA may render in connection with unaudited financial statements, as well as unaudited financial information of an entity that is not required to file financial statements with a regulatory agency in connection with the sale or trading of its securities in a public market.

Standards-setting body for accounting principles that issued its opinions from November 1962 to June 1973. Succeeded by Financial Accounting Standards Board.

Credential in business valuation awarded by the AICPA to those who have met prescribed requirements and passed an examination. One of four AICPA specialty credentials, the others being Personal Financial Specialist (PFS), Certified in Financial Planning (CFP); and Certified in Financial Forensics (CFF.)

Total individual income, as defined by the Internal Revenue Code, less statutory adjustments—primarily business, investment, and certain other deductions.

Auditor’s opinion which states that financial statements do not fairly present the financial position, results of operations, or cash flows in conformity with generally accepted accounting principles.

Specific procedures agreed to by a CPA, a client and (usually) a specified third party. The report states what was done and what was found. Additionally, the use of the report is restricted to only those parties who agreed to the procedures.

Executive Committee of Council which directs Institute activities between Council meetings. It is comprised of 23 members.

AICPA governing body which determines Institute procedures and policies. It is comprised of approximately 260 members representing every state and four U.S. territories.

The Appeals mission is to resolve tax controversies, without litigation, on a basis which is fair and impartial to both the taxpayer and the Federal Government. The Appeals Office considers cases that involve examination, collection, and penalty issues. Taxpayers who disagree with the IRS findings in their cases may request an Appeals hearing. The local Appeals Office is separate and independent of the IRS office that proposed the tax adjustment, collection action, or penalty.

Services which improve the quality of information, or its context, for decision makers.

The attestation standards enable practitioners to examine or review non-financial statement information and to perform and report on the results of those engagements in accordance with professional standards.

The risk that an auditor will unknowingly fail to appropriately modify his/her opinion on financial statements that are materially misstated.

The application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class.

Board authorized by the AICPA to promulgate auditing and attest standards, quality control standards procedures and implementation guidance for AICPA members performing such services. It is comprised of 19 members and as a senior technical committee; it is authorized to make public statements without clearance from the Board of Directors on matters related to its area of practice.

Under this program, the IRS uses information returns from third parties (such as Forms W-2 and 1099) to identify tax return delinquencies (nonfilers), constructs tax returns for certain nonfilers based on that third-party information, and assesses tax, interest, and penalties based on the substitute returns.

Under this program, the IRS uses information returns from third parties (such as Forms W-2 and 1099) to identify unreported income on returns filed by taxpayers.

Represents the average number of full-time equivalent (FTE) positions actually used to conduct IRS operations. Excludes positions funded by reimbursements from other Federal agencies and private entities performed by these external parties. In contrast, IRS labor force represents the total number of persons, including full-time, part-time, and seasonal workers, employed during the fiscal year.

An executive committee of the AICPA with overall responsibility for preparing and grading the Uniform CPA Examination.

Includes taxes on corporation income (Form 1120 series) and unrelated business income from tax exempt organizations (Form 990-T).

Funds the capital asset acquisition of information technology systems.

The discipline involves a process which derives a supportable opinion about the worth of a business or individual assets or liabilities.

Credential in financial forensics awarded by the AICPA to CPAs who have met experience and examination requirements. The CFF encompasses fundamental and specialized forensic accounting skills that CPA practitioners apply in a variety of service areas, including: bankruptcy and insolvency; computer forensics; economic damages; family law; fraud investigations; litigation support; stakeholder disputes and valuations. The CFF is one of four AICPA specialty credentials, the others being Personal Financial Specialist (PFS), Accredited in Business Valuation (ABV) and Certified Information Technology Professional (CITP.).

Credential in information technology awarded by the AICPA to CPAs who have met experience, life-long learning and examination requirements. CITPs are involved in information strategic planning, implementation, management, and business strategies for information systems. One of four AICPA specialty credentials, the others being Personal Financial Specialist (PFS), Accredited in Business Valuation (ABV) and Certified in Financial Forensics (CFF.)

An international certification awarded by the Institute of Internal Auditors (IIA) that reflects competence in the principles and practices of internal auditing.

Title bestowed by the Institute of Management Accountants (IMA) on persons meeting certain basic requirements, principally an examination covering economic theory, financial management, cost accounting, etc.

Professional accounting designation used in the United Kingdom, Canada, New Zealand and several other countries.

The Chartered Global Management Accountant is designed to elevate management accounting and further emphasize its importance for businesses worldwide The AICPA and CIMA have joined together to form a joint venture which powers this new designation for management accountants.

The IRS Chief Counsel is appointed by the President of the United States, with the advice and consent of the U.S. Senate, and serves as the chief legal advisor to the IRS Commissioner on matters pertaining to the interpretation, administration, and enforcement of the Internal Revenue Code, as well as all other legal matters. Under the IRS Restructuring and Reform Act of 1998, the Chief Counsel reports to both the IRS Commissioner and the Treasury General Counsel. Attorneys in the Chief Counsel’s Office serve as lawyers for the IRS. They provide guidance to the IRS and to taxpayers on the correct legal interpretation of Federal tax laws, represent the IRS in litigation, and provide all other legal support the IRS needs to carry out its mission.

Includes published guidance; advanced case resolution; treaties; legislation; Congressional and executive correspondence; training and public outreach; and pre-filing legal advice to the IRS. 

Includes Tax Court litigation; collection, bankruptcy, and summons advice and litigation; Appellate Court litigation; criminal tax; and enforcement advice and assistance. 

There are two parts of the Child Tax Credit: the Child Tax Credit and the Additional Child Tax Credit. The Child Tax Credit is a credit that may reduce tax by as much as $1,000 for each qualifying child. The Additional Child Tax Credit, which may be refundable, is a credit for certain individuals who get less than the full amount of the child tax credit. 

The failure to comply with Federal tax laws may result in civil penalties. Civil penalties are generally payable upon notice and demand and are generally assessed, collected, and paid in the same manner as taxes. 

Reflects all case closures for the Exempt Organizations Determinations function. These include not only initial applications for tax-exempt status, but also other determinations, such as public charity and private foundation status determinations, advance approval of scholarship grant procedures, and group determinations of tax-exempt status. Not all organizations described in section 501(c)(3) must apply for tax-exempt status, including churches, interchurch organizations of local units of a church, integrated auxiliaries of a church, conventions or associations of churches, and organizations (other than private foundations as described in section 509(a)) that have normal gross receipts in each taxable year of not more than $5,000. In addition, organizations may be recognized as tax-exempt under section 501(c)(3) without filing an application if they are included in a group exemption letter given to an affiliated parent organization.

Provides the taxpayer, or a third party whose property is subject to a collection action, an administrative appeal for certain collection actions, including levy or seizure action that was or will be taken, Notice of Federal tax lien that was or will be filed, and rejected or terminated installment agreements. 

A case where a taxpayer requested a hearing with an independent Collection Due Process (CDP) officer in response to a notice of Federal tax lien or notice of intent to levy. The CDP hearing provides the taxpayer an opportunity, early in the collection process, to work with an independent hearing officer to resolve the collection of the taxpayer’s liability. 

When a taxpayer’s request for a Collection Due Process hearing or an equivalent hearing is not received timely or the request cannot be processed, Appeals may review the request and make a separate timeliness determination.

Information presented in the form of financial statements that is the representation of management without the accountant undertaking to express any assurance on the statements.

Term sometimes used to refer to the Uniform CPA Examination. The Uniform CPA Examination is delivered in a computerized format, almost year-round, at test centers across the United States.

Consulting Services provided by CPA firms in addition to the traditional audit, accounting, and tax services (e.g. systems work, production planning). The AICPA CS Team provides educational and technical guidance to firms and private sector employees who offer consulting services to clients or employers.

An integral part of the life-long learning required for the CPA to provide competent service to the public. The set of activities that enables accounting professionals to maintain and increase their professional competence. Often referred to as professional development.

A Coordinated Industry Case (CIC) designation may be assigned to a large corporate taxpayer based on factors such as the taxpayer’s gross assets, gross receipts, operating entities, industries, and/or foreign assets. A CIC taxpayer may appeal the findings of the examination conducted by the IRS. 

Criminal Investigation serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law. The three major areas of investigation are Legal Source Tax Crimes Program, Illegal Source Financial Crimes Program, and Narcotics-Related Financial Crimes Program. 

A retirement plan that does not maintain individual account balances that reflect the accrued benefits of each plan participant. Instead, the accrued benefit is determined by a formula stated in the plan. 

A retirement plan that provides an individual account for each participant. Benefits are based solely on amounts contributed to the participant’s account and any earnings on these contributions. Types of defined contribution plans include profit sharing, stock bonus, money purchases, target benefit, leveraged employee stock ownership plan, and non-leveraged employee stock ownership plan.

An investigation opened by the Collections Division when a taxpayer does not respond to an IRS notice of a delinquent return.

Reflects events for which the Federal Emergency Management Agency designated as major disaster areas and the IRS granted administrative tax relief.

Eligible tax practitioners may electronically request authorization to receive a client’s tax account information or to represent the client before the IRS. This e-service expedites processing and issues a real-time acknowledgment of accepted submissions.

A tax credit for eligible people who work and have income less than specified amounts. The amount of the credit is based on income, filing status, and number of qualifying children, if any. 

Can be used in lieu of the prior-year adjusted gross income to verify a taxpayer’s identity for electronic filing.

Provides information about applications for determination of tax-exempt status for employee retirement plans.

Funds activities to determine and collect owed taxes, to provide legal and litigation support, to conduct criminal investigations, to enforce criminal statutes related to violations of internal revenue laws, and to purchase and hire passenger motor vehicles.

Peer review for firms that only perform services under Statements on Standards for Accounting and Review Services (SSARS) and/or services under the Statements on Standards for Attestation Engagements (SSAEs.) The objectives of an engagement review are to provide the reviewer with a reasonable basis for expressing limited assurance that: (a) the financial statements or information and the related accountant’s report on the accounting and review engagements and attestation engagements submitted for review conform in all materials respects and (b) the reviewed firm’s documentation conforms with the requirements of SSARS and the SSAEs applicable to those engagements in all material respects.

A tax practitioner who, by passing an examination given by the US Treasury Department, can represent taxpayers before the Internal Revenue Service.

Tax on the right to transfer property at the owner’s death.

An IRS examination (audit) is a review of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate. 

Involves issues in dispute by the taxpayer relating to income tax, employment tax, excise tax, estate tax, gift tax, or tax-exempt status. 

A document issued by the AICPA, Financial Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Federal Accounting Standards Advisory Board (FASAB) or other authority to invite public comment before a final accounting, auditing or administrative standard, policy or procedure is issued.

An electronic language for financial reporting. It is an XML-based framework that provides the financial community a standards-based method to prepare, publish in a variety of formats, reliably extract and automatically exchange financial statements of publicly held companies.

Group authorized by the accounting profession to establish generally accepted accounting principles (GAAP) applicable to federal government entities.

Examinations (audits) generally performed in person by revenue agents, tax compliance officers, tax examiners, and revenue officer examiners. However, some field examination cases may ultimately be conducted through correspondence in order to better serve the taxpayer. 

Independent, private-sector organization whose trustees appoint the members, provide funds, and exercise general oversight of the Financial Accounting Standards Board (FASB), Governmental Accounting Standards Board (GASB), and their respective advisory councils.

Official promulgations by the Financial Accounting Standards Board and, if not superseded, part of generally accepted accounting principles.

Independent, private, non-government group which is authorized by the accounting profession to establish generally accepted accounting principles in the U.S.

The presentation of financial data, including accompanying notes derived from accounting records and intended to communicate an entity’s economic resources or obligations at a point in time, or the changes therein for a period of time, in accordance with a comprehensive basis of accounting.

A taxpayer may appeal the denial of a request for records made under the Freedom of Information Act. 

Reflects the total staff hours expended, converted to the number of full-time positions.

Uniform minimum standards of and guidelines to financial accounting and reporting. Currently the Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB) and the Federal Accounting Standards Advisory Board (FASAB) are authorized to establish these principles.

Standards governing the conduct of external audits by CPAs, as determined by the Auditing Standards Board (ASB) of the AICPA.

Independent, non-partisan federal agency that assists Congress in investigating and reporting on the government’s effectiveness in using public funds.

Commonly referred to as the “Yellow Book,” it contains standards for audits of government organizations, programs, activities, and functions, and of governmental funds received by contractors, nonprofit organizations, and other non government organizations. Revisions are issued as required by the Comptroller General of the U.S.

Official promulgations by the Governmental Accounting Standards Board (GASB) and, if not superseded, part of generally accepted accounting principles applicable to state and local governmental entities.

Group authorized by the accounting profession to establish generally accepted accounting principles (GAAP) applicable to state and local governmental entities.

Collections before refunds and credits to taxpayer accounts have been made. IRS gross collections exclude excise taxes paid to the Alcohol and Tobacco Tax and Trade Bureau and to the U.S. Customs and Border Protection.

An Industry case is any type of case that is not designated as a Coordinated Industry Case (CIC). An industry case taxpayer may appeal the findings of an examination conducted by the IRS.

Taxpayer information from information return forms and schedules is matched to that reported on income tax returns under the Automated Underreporter Program and the Automated Substitute for Return Program. Includes Forms 1042–S (foreign person’s U.S. source income subject to withholding); the Form 1098 series (including mortgage interest, student loan interest, and tuition payments); the Form 1099 series (including interest and dividend distributions); the Form 5498 series (including individual retirement arrangement and medical savings account information); Forms W–2 (wage and tax statements); Forms W–2G (certain gambling winnings); and Schedules K–1 (partnership, S corporation, and estate or trust distributions). Information from these forms and schedules is matched to that reported on income tax returns.

The spouse whose portion of a joint income tax overpayment was or will be used to offset a tax or nontax debt for which he/she is not liable.

A case in which a taxpayer who filed a joint return with a spouse or ex-spouse may apply for relief of tax, interest, and penalties if he/she meets specific requirements. An Innocent Spouse case in Appeals is one in which the taxpayer requested and was denied innocent spouse relief by the IRS. 

An organization whose members represent 153 accounting bodies in 112 countries. The group is dedicated to bringing about the harmonization of international accounting standards.

The committee authorized by the International Federation of Accountants (IFAC) to issue International Standards on Auditing (ISAs) and guidance.

International Financial Reporting Standards (IFRS) are accounting standards, developed by the International Accounting Standards Board (IASB), that are becoming the global standard for the preparation of public company financial statements. The IASB is an independent accounting standards body, based in London, England.

Under this program, IRS Criminal Investigation identifies, investigates, and assists in the prosecution of crimes involving legal industries, legal occupations, and, more specifically, legally earned income associated with the violation of Title 26 (tax violations) and Title 18 (tax-related violations) of the U.S. Code. The Legal Source Tax Crimes Program also includes those cases that threaten the tax system, such as Questionable Refund Program cases, unscrupulous return preparers, and frivolous filers/nonfilers who challenge the legality of the filing requirements. Excise tax and employment tax cases are also important elements of the Legal Source Tax Crimes Program.

A defined contribution retirement plan in which a company leverages its credit to borrow money to fund the retirement plan. The company uses the borrowed funds to purchase shares from the company’s treasury for the retirement plan and makes annual contributions to repay the original loan. 

A defined contribution retirement plan under which employer contributions are based on a fixed percentage of compensation. Contributions are required every year, regardless of earnings and profits. 

An agreement negotiated by the International Qualifications Appraisal Board (IQAB), a joint body of the AICPA and NASBA, with accounting organizations in other countries to qualify their members to sit for the International Qualification Examination (IQEX).

A defined contribution retirement plan in which a company contributes either cash to purchase outstanding shares of company stock or contributes a certain amount of shares from the company’s treasury to employee accounts. 

Returns filed for entities that generally do not have a tax liability, but pass through any profits and losses to the underlying owners who include these profits or losses on their income tax returns. These entities include most partnerships and S corporations, along with nontaxable estate and trusts (fiduciaries), domestic international sales corporations, and real estate mortgage investment conduits.

A proposal by a taxpayer to the Federal Government that would settle a tax liability for payment of less than the full amount owed. Absent special circumstances, an offer will not be accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement.

A tax professional may appeal the findings of the IRS Office of Professional Responsibility (OPR). OPR has oversight responsibility for tax professionals and investigates allegations of misconduct and negligence against attorneys, certified public accountants, enrolled agents, and other practitioners representing taxpayers before the IRS. In addition, IRS e-file applicants and providers may request an administrative review when the applicant is denied participation in IRS e-file or the provider is sanctioned while participating in IRS e-file.

A filing option that allows taxpayers to prepare and file tax returns using a personal computer. Online returns can be filed through one of two processes: taxpayers either complete a tax return on a Website without downloading any software, or taxpayers purchase and load software onto their personal computers, prepare their returns, and transmit them to the IRS through an online filing company.

Funds activities to support taxpayer services and enforcement programs, including rent, facilities services, maintenance, printing, postage, security, and other IRS-wide administration activities; research and statistics of income; telecommunications; and information technology development.

A basis of accounting, other than GAAP, that an entity uses to report its assets, liabilities, equity, revenues and expenses. Examples of OCBOA include income tax basis and cash basis of accounting.

An evaluation of whether a CPA firm’s system of quality control for its accounting and auditing practice has been designed in accordance with quality controls standards established by the AICPA and whether the CPA firm’s quality control policies and procedures were being complied with to provide the firm with reasonable assurance of conforming with professional standards or a review of the firms’ accounting reports and financial statements to determine conformity with professional standards, applicable to those engagements in all material respects. Peer reviews are performed in accordance with standards established by the AICPA Peer Review Board for firms enrolled in the AICPA Peer Review Program, and by the Center for Public Company Audit Firms Peer Review Committee for firms enrolled in the Center for Public Company Audit Firms Peer Review Program.

The executive committee has senior status with authority to establish, conduct and administer the AICPA Peer Review Program in cooperation with administering entities. Its objective is to enhance the quality of accounting and auditing engagements by CPA firms by establishing and conducting, in cooperation with the state CPA societies, a peer review program for AICPA and state CPA society members engaged in the practice of public accounting.

A case in which the taxpayer requests abatement of a civil penalty that was assessed before the taxpayer was given an opportunity to dispute the penalty. The taxpayer may submit a written request for abatement of the penalty, and if the request is denied, the taxpayer may appeal. 

Credential in financial planning awarded by the AICPA to CPAs who have met experience and examination requirements. The PFS is one of four AICPA specialty credentials, the others being Accredited in Business Valuation (ABV), Certified in Financial Forensics (CFF) and Certified Information Technology Professional (CITP).

One of two sections of the AICPA Division for CPA Firms that primarily serves local and regional CPA firms with nonpublic clients.

An initiative of the AICPA to determine if, and where, privately-held companies have a need for different accounting standards than publicly-traded companies, and if so, to work to create those standards. This initiative is currently focused on working collaboratively with the FASB to meet the needs of companies, users of financial reporting and the CPAs who serve these clients.

The executive committee having authority to develop standards of ethics, promote understanding and voluntary compliance with such standards, establish and present charges of violations of the standards and the AICPA’s bylaws to the Joint Trial Board for disciplinary action in cooperation with State Societies under the Joint Ethics Enforcement Program (JEEP), improve the profession’s enforcement procedures, coordinate the subcommittees of the Professional Ethics Division, and promote the efficiency and effectiveness of the JEEP Program.

A defined contribution retirement plan that gives employees a share in the profits of the company. Contributions to employee retirement accounts are determined as a percentage of annual company profits. 

Comprises any action taken by the IRS to prevent the release of funds from the U.S. Treasury in response to taxpayer efforts to recoup all, or part, of previously assessed and paid tax.

Generic term for persons/firms which practice public accounting but are not CPAs. Some states license public accountants.

Any entity that: (a) trades securities in a public market either on a stock exchange or in the over-the-counter market; (b) makes a filing with a regulatory agency in preparation for the sale of any classes of its securities in a public market ; (c) is a subsidiary, corporate joint venture, or other entity controlled by (a) or (c)

The PCAOB is a private-sector, non-profit corporation, created by the federal Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.

Auditor’s opinion which states that except for the matter to which a qualification relates, the financial statements fairly present financial position, results of operations, cash flows in conformity with generally accepted accounting principles.

These cases involve taxpayers seeking refunds of claimed overpayments after taxes have been fully paid.

Peer review committee members from approved state CPA society administering entities that discuss and accept peer review reports and other peer review related documents for firms enrolled in the AICPA Peer Review Program.

A peer review where the objective is to enable the reviewed CPA firm to enhance the overall quality of its compilation engagements that omit substantially all disclosure. The reviewer provides comments and recommendations based on whether the submitted financial statements and related accountant’s reports appear to conform to the requirements of professional standards in all material respects. A report review does not provide the reviewer with a basis for expressing an opinion on the firm’s system of quality control for its accounting practice.

Performing inquiry and analytical procedures that provide the accountant with a reasonable basis for expressing a limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with GAAP or, if applicable, with OCBOA.

Agency of the federal government that regulates the public trading of securities. The SEC has the authority to establish accounting and auditing regulations but defers to the Financial Accounting Standards Board and the Public Company Accounting Oversight Board.

Statements issued by the Auditing Standards Board to provide CPAs with guidance regarding the application of Generally Accepted Auditing Standards (GAAS).

Statements issued by the Accounting and Review Services Committee to provide CPAs with guidance regarding reporting on the unaudited financial statements or other unaudited financial information of nonpublic entities.

Statements issued by the Auditing Standards Board, Accounting and Review Services Committee, or the Management Advisory Services Executive Committee to provide guidance to CPAs engaged to perform attest services.

Statements which provide behavioral standards for the conduct of consulting services. The SSCS includes the General Standards found in Rule 201 of the AICPA Code of Professional Conduct plus three additional standards found in Rule 203, including Client Interest, Understanding with the Client and Communication with the Client.

Tax behavioral standards that are binding under the AICPA Code of Professional Conduct.

A defined contribution retirement plan that is funded by an employer’s contributions of corporate stock to the retirement plan. 

Substantial Equivalency is a concept that provides greater ease of mobility across state lines for CPAs both in person and electronically. Under this concept, if a CPA has a license in good standing from a state that utilizes CPA certification criteria that are essentially those outlined in the UAA, then the CPA would be qualified to practice in that state without a reciprocal license.

A peer review for firms that perform engagements under the SASs, Government Auditing Standards or examinations of prospective financial statements under the SSAEs. A system review is intended to provide the reviewer with a reasonable basis for expressing an opinion on whether, during the year under review: (a) the reviewed firm’s system of quality control for its accounting and auditing practice has been designed in accordance with quality control standards established by the AICPA and (b) the reviewed firm’s quality control policies and procedures were being complied with to provide the firm with reasonable assurance of conforming with professional standards.

A defined contribution retirement plan similar to a defined benefit plan since employer contributions, which are mandatory, are based on projected retirement benefits. However, unlike a defined benefit retirement plan, the benefits provided to participants at retirement are based on the performance of the investments, and are therefore not guaranteed. 

This term was originally enacted by the Equal Employment Opportunity Commission (EEOC) in 1979 and refers to certain disabilities that have been identified for emphasis in Federal affirmative employment planning.

A case that involves a taxpayer contesting the Internal Revenue Service’s determination that the taxpayer owes additional tax. The Tax Court provides a forum for a taxpayer to request a determination of the deficiency prior to paying the tax allegedly owed. 

An independent organization within the IRS that helps taxpayers resolve problems with the IRS and recommends changes that will prevent problems in the future. 

These centers are a source for personal tax help when taxpayers believe a tax issue cannot be handled online or by phone, and they want face-to-face assistance. Complementing 24/7 access to tax forms and information online at IRS.gov and the convenience of toll-free telephone assistance, Taxpayer Assistance Centers are an option when taxpayers want to talk with the IRS in person.

Issued by the Taxpayer Advocate Service on behalf of taxpayers, Taxpayer Assistance Orders (TAOs) direct an IRS organizational unit to take a specific action or to review, expedite consideration of, or reconsider a taxpayer’s case. However, in the majority of cases, the Taxpayer Advocate Service can resolve taxpayers’ issues without issuing TAOs.

Funds pre-filing assistance and education, filing and account services, and taxpayer advocacy services.

The sum of gross receipts from farm and nonfarm businesses calculated by adding the positive values of gross receipts and other income from Schedule C and gross income (which can be positive or negative) from Schedule F. Schedule C is used to report profit or loss from nonfarm sole proprietorships. Schedule F is used to report profit or loss from farming. If a taxpayer reports both farm and nonfarm income, the return is classified by the larger source of income.

In general, total positive income is the sum of all positive amounts shown for the various sources of income reported on an individual income tax return and, thus, excludes losses.

Includes amounts collected through collection activity on previously unpaid assessed taxes plus assessed and accrued penalties and interest. Assessed tax may result from voluntarily filed returns, examinations of taxpayers’ returns, or a combination of both.

Enables authorized tax practitioners to order tax accounts, tax return transcript, and other tax information for their business and individual clients. These documents are returned to the practitioner’s computer through a secure online connection within minutes of the request.

An employer is required to pay trust fund taxes to the U.S. Treasury through Federal Tax Deposits. Withheld income and employment taxes, including Social Security taxes, railroad retirement taxes, or collected excise taxes, are collectively called trust fund taxes because employers actually hold the employee’s money in trust until they make a Federal tax deposit in that amount. A Trust Fund Recovery Penalty applies to the responsible person(s) for the total amount of trust fund taxes evaded, not collected, or not accounted for and not paid to the U.S. Treasury. The taxpayer may appeal Collection’s determination. 

Model legislation that seeks to eliminate differing requirements on issues including CPA certification, reciprocity and temporary practice by promoting uniformity in state accountancy licensing laws. The AICPA and NASBA published the first joint model bill, later renamed the Uniform Accountancy Act, in 1984.

A auditor’s opinion that states the financial statements present fairly, in all material respects, financial position, results of operations, cash flows in conformity with generally accepted accounting principles.