23C Date.  The date the IRS posts an assessment to its computers' master file.


A.
Abatement.  A reduction or elimination of tax, penalties or interest. Taxes may be abated when the IRS determines that there was an overassessment.

Accelerated Cost Recovery System (ACRS). An accelerated depreciation method provided by statute for most types of property used in business and income-producing activities during the years 1981 through 1986.

Accelerated Depreciation. A method of depreciation that produces larger deductions in the early years of an asset’s life.

Account.  A tax record on magnetic tape. Tax data is identified by Social Security Number or Employer Identification Number.

Acquisition Debt. Debt used to buy, build or substantially improve a principal residence or second home and which generally qualifies for a full interest expense deduction.

Active Income. Income from wages, tips, salaries, commissions, and a trade or business in which you materially participate.

Active Participation. A type of investor position that determines how rental income is taxed. Requirements are less stringent for Active Participation than for Material Participation.

Activity Code. A number added by an IRS Service Center to tax returns to identify the type of return and the type of schedule.

Adjusted Basis. The original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures.

Adjusted Gross Estate (AGE). Gross Income less deductions allowable under Sections 2053 and 2054 of the Internal Revenue Code.

Adjusted Gross Income (AGI). An intermediate step in calculating taxable income determined by subtracting from gross income certain items such as alimony and job-related moving expenses but not itemized deductions.

Adoption Taxpayer Identification Number (ATIN). A number used for a taxpayer’s child when the child’s adoption is pending.

Aider and Abettor Statute. A law that subjects a person to prosecution and punishment for helping or encouraging another in attempting to evade the other’s tax liability. 18 U.S.C. § 2.

Alimony. Payments made to a separated or divorced spouse as required by divorce decree or agreement. Qualifying payments to an ex-spouse are deductible as an adjustment for adjusted gross income and taxable to the recipient.

All-Events Test. A test used to determine whether income is considered to be earned or expenses are deductible by an accrual-basis taxpayer income is determined to have been earned in the year in which all of the events occur that determine the right to receive such income, and the amount can be determined with reasonable accuracy. A deduction is available in the year the amount becomes fixed and the amount is determinable with reasonable certainty.

Alter Ego Doctrine. A doctrine whereby the law disregards corporate existence and fixes liability on an individual.

Alternative Minimum Tax (AMT). A special tax designed to limit tax breaks for high income individuals.

Amended Return.  A return filed to correct a previously filed return.

Appeals Officer. An IRS employee who has the authority to resolve disputes with the taxpayer based upon the hazards of litigation.

Assessment.  The formal recording by the IRS on its records of a tax liability. Following the assessment, collection measures are undertaken on any unpaid liabilities.

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