E.
Enrolled Agent. An individual who has passed a difficult IRS test or has worked in a technical area within the IRS for at least 5 years, an enrolled agent can represent clients at IRS audits and administrative appeals.

Entry Order.  Also called an Order for Entry to Effect Levy. In the absence of permission from the taxpayer, the IRS must obtain a warrant before entering constitutionally protected premises to seize property for the payment of taxes. The IRS routinely obtains these warrants.

Erroneous Refund. A refund made in error by the IRS which may be recovered by a civil action brought by the government within two years after the refund.

Estimated Tax Payments.  Quarterly tax payments made to the IRS when the amount of any withholding from employment income is not sufficient to pay the accruing income tax liability.

Examination.  An IRS audit of your income tax liability. An office audit is an audit conducted in the IRS's offices. A field audit is conducted by the IRS on the taxpayer's business premises or in the offices of the taxpayer's representative.


F.
Failure-to-File Penalty. The penalty assessed upon a tax return not filed by the due date (including extensions).

Failure-to-Pay Penalty. A penalty assessed on unpaid taxes.

Fair Market Value.  The price a willing buyer would pay a willing seller where neither is under a compulsion to buy or sell.

Federal Tax Deposit.  Employers are generally required to make periodic deposits against the accruing employment tax liability. This liability includes your employee's withheld Federal income tax, Social Security and Medicare taxes, plus the employer's share of Social Security and Medicare taxes. Deposits may be required on a monthly or semi-weekly basis, depending on the amount owed during a four-quarter look-back period. The monetary penalties for failure to make timely, accurate deposits are severe.

Federal Tax Lien.  A lien of the United States on all property and rights to property of a taxpayer who has unpaid federal taxes.

Foreclosure of Federal Tax Lien.  Lawsuit filed by the U.S. Department of Justice, Tax Division, or the local U.S. Attorney to obtain judicial foreclosure of a Notice of Federal Tax Lien. IRM § 34.7.5.1 (11-13-96).

Forms 433-A (Collection Information Statement for Wage Earners and Self-Employed Individuals) and 433-B (Collection Information Statement for Businesses).  Detailed IRS financial statements that require full disclosure of assets and income.

G.
Garnishment. Taxpayers often refer to IRS levies on wages and accounts as “garnishment.”


I.
Illegal Income. Income from illegal sources. Failure to report Illegal Income is itself a crime for tax purposes.

Incentive Stock Option ("ISO").  A component of a compensation plan whereby qualifying stock options are not taxed until they are sold.

Information Data Retrieval System ("IDRS").  A computer system which enables IRS Service Centers and area offices to have instantaneous visual access to certain taxpayer accounts. IRM § 4.4.32.7 (02-08-99).

Installment Agreement.  A written agreement with the IRS for monthly payments on past-due taxes.

Internal Revenue Manual (IRM). An official compilation of policies, procedures, instructions, and guidelines for the Internal Revenue Service.

J.
Jeopardy Assessment. An IRS assessment made immediately upon a determination by the IRS that collection of the tax that collection of the tax could be jeopardized by a delay.

Joint Committee Review. The Joint Committee on taxation receives a report regarding proposed refunds pursuant to amended tax returns or claims for refunds when the amount refunded is greater than $1,000,000.00.

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