Desk Tools
Practitioner Glossary
- ACS (Automated Collection System)
- IRS call-center collection function that issues notices like CP90 and handles phone-based collection.
- Assessment
- Formal recording of a tax liability on the IRS books; starts the 10-year collection period.
- AUR (Automated Underreporter)
- Program matching returns against information returns; issues CP2000 notices.
- CAF Number
- Centralized Authorization File number assigned to a representative who files Form 2848 or 8821.
- CAP (Collection Appeals Program)
- Fast Appeals review of liens, levies, and installment agreement actions; no Tax Court review.
- CDP (Collection Due Process)
- Right under IRC §6320/§6330 to an Appeals hearing before levy or after lien filing, with Tax Court review.
- CNC (Currently Not Collectible)
- Status pausing active collection when a taxpayer cannot pay basic living expenses.
- CSED
- Collection Statute Expiration Date — generally 10 years after assessment (IRC §6502).
- Deficiency
- Amount by which the correct tax exceeds the tax shown on the return.
- Equivalent Hearing
- Appeals hearing requested after the 30-day CDP window but within one year; no Tax Court review.
- First-Time Abatement (FTA)
- Administrative waiver of failure-to-file, failure-to-pay, or failure-to-deposit penalties for taxpayers with a clean 3-year compliance history.
- Form 12153
- Request for a Collection Due Process or Equivalent Hearing.
- Form 2848
- Power of Attorney and Declaration of Representative — authorizes representation before the IRS.
- Form 843
- Claim for Refund and Request for Abatement, used for written penalty relief requests.
- Form 8821
- Tax Information Authorization — allows receiving confidential information, but not representation.
- Installment Agreement (IA)
- Monthly payment plan for an assessed balance.
- Levy
- Legal seizure of property or rights to property (wages, bank accounts, refunds) to satisfy a tax debt.
- Lien (NFTL)
- Notice of Federal Tax Lien — public notice of the government's claim against all of the taxpayer's property.
- Math Error Authority
- IRC §6213(b) power to summarily correct clerical errors; taxpayer has 60 days to request abatement.
- Offer in Compromise (OIC)
- Agreement to settle a tax debt for less than the full amount, based on doubt as to collectibility, liability, or effective tax administration.
- Reasonable Cause
- Penalty relief standard showing ordinary business care and prudence despite failure to comply (e.g., illness, disaster).
- RSED / ASED
- Refund and Assessment Statute Expiration Dates — generally 3 years from filing for assessment; 3 years from filing or 2 from payment for refunds.
- Statutory Notice of Deficiency
- The '90-day letter' under IRC §6212; ticket to Tax Court without prepayment.
- TAS (Taxpayer Advocate Service)
- Independent IRS office assisting taxpayers facing hardship or unresolved problems (Form 911).
- TFRP (Trust Fund Recovery Penalty)
- IRC §6672 penalty assessed personally against responsible persons for unpaid withheld payroll taxes.
- Transcript
- IRS record of account, return, or wage & income data; essential for verifying notices.