What Is a Tax Lien Foreclosure? Tax lien foreclosure is the sale of a property resulting from the property owner’s failure to pay their tax liabilities. A tax lien foreclosure occurs when the property owner has not paid the required taxes, including property taxes and federal and state income taxes. Key Takeaways If a property
What Is a Tax Loss Carryforward? A tax loss carryforward (or carryover) is a provision that allows a taxpayer to move a tax loss to future years to offset a profit. The tax loss carryforward can be claimed by an individual or a business to reduce any future tax payments.  Key Takeaways: A tax loss carryforward
What Is Tax Lot Accounting? Tax lot accounting is a record-keeping technique that traces the dates of purchase and sale, cost basis, and transaction size for each security in your portfolio, even if you make more than one trade in the same security. Breaking Down Tax Lot Accounting Shares purchased in a single transaction are
What Is the Taxpayer Advocate Service (TAS)? The term Taxpayer Advocate Service (TAS) refers to an independent organization within the Internal Revenue Service (IRS) that reports to the National Taxpayer Advocate. The service represents the rights of individual and corporate taxpayers who experience financial difficulties. Taxpayers can get help from the Taxpayer Advocate Service when
What is the Taxpayer Bill Of Rights-TABOR The Taxpayer Bill of Rights-TABOR is a broad term encompassing many concepts and initiatives at the federal, state and local level of the United States and some other countries. TABOR sometimes refers to ballot initiatives designed to limit the government’s power of taxation. Specifically, it references a law passed
What Is a Tax Preference Item? A tax preference item is a type of income, normally received tax-free, that may trigger the alternative minimum tax (AMT) for taxpayers. Tax preference items include interest on private activity municipal-bonds, qualifying exclusions for small business stock, and excess intangible drilling costs for oil and gas – if the
What Is a Tax Rate? A tax rate is a percentage at which an individual or corporation is taxed. The United States, both the federal government and many of the states, uses a progressive tax rate system, in which the percentage of tax charged increases as the amount of the person’s or entity’s taxable income
What Is the Tax Reform Act of 1986? The Tax Reform Act of 1986 is a law passed by the United States Congress to simplify the income tax code. To increase fairness and provide an incentive for growth in the economy, the passage of the Act reduced the maximum rate on ordinary income and raised
What Is the Tax Reform Act of 1993? The Tax Reform Act of 1993 was a federal law passed by the 103rd Congress and signed into law by President Bill Clinton. The Act aimed to cut the federal deficit through increased taxes and reduced spending. It is also known as the Omnibus Budget Reconciliation Act of 1993. The
What Is a Tax Refund? The term tax refund refers to a reimbursement made to a taxpayer for any excess amount paid in taxes to the federal or state government. While taxpayers tend to look at a refund as a bonus or a stroke of luck, it often represents what is essentially an interest-free loan
