Every term. Plain English.

The IRS automated system that handles collection for tax accounts not assigned to a Revenue Officer. ACS issues levy notices, files liens, and handles installment agreement requests by phone or mail. ACS cases are generally less complex than Revenue Officer cases and can often be resolved without in-person IRS contact.

An IRS document that shows the complete history of a taxpayer's account for a specific tax year — including the original return filed (TC-150), all assessments, payments, penalties, interest, and collection actions. The account transcript is the primary document RESO analyzes.

A two- or three-digit code used in conjunction with TC-971 to specify the type of miscellaneous action taken on an account. For example, TC-971 AC 641 indicates passport certification as seriously delinquent; TC-971 AC 524 indicates a lien filing.

The official IRS recording of a tax liability on a taxpayer's account. The assessment date (the date of the TC-150 or TC-290 posting) is the starting point for calculating the Collection Statute Expiration Date (CSED).

An IRS process allowing taxpayers to dispute an assessment made after an audit (examination) — typically when the taxpayer did not respond to the original audit, has new documentation, or disagrees with the IRS findings. Does not require filing a formal appeal and can be requested at any time before the balance is paid.

The total amount a taxpayer owes the IRS for a given tax year, including assessed tax, accrued interest, and penalties. RESO calculates and displays the balance due for each year on the transcript.

The IRS database of authorized third-party representatives. A CAF number is assigned to practitioners who file Form 2848 (Power of Attorney) or Form 8821 (Tax Information Authorization). Having a valid CAF authorization allows practitioners to pull IRS transcripts directly through e-Services.

A legal right granted to taxpayers to request a hearing before the IRS Office of Appeals before a levy is executed (or within 30 days after a Notice of Federal Tax Lien is filed). Filing a CDP request immediately stops levy action and tolls the CSED for the duration of the hearing process.

The date on which the IRS legally loses the right to collect a tax debt. The CSED is generally 10 years from the original assessment date (TC-150). Certain events toll (pause) the CSED: bankruptcy filings, pending Offers in Compromise, Collection Due Process hearings, innocent spouse relief requests, installment agreement applications, and time spent outside the US. RESO calculates the adjusted CSED for each tax year on the transcript.

A status the IRS assigns to a taxpayer account when the taxpayer has demonstrated they cannot pay any amount after basic living expenses are covered. While in CNC status, the IRS suspends active collection (levies, lien action). The balance remains, interest and penalties continue to accrue, and the CSED continues to run. Indicated by TC-530 on the transcript.

IRS forms (433-A for individuals, 433-B for businesses, 433-F simplified version) that document a taxpayer's full financial picture — income, expenses, assets, and liabilities. Required for establishing Installment Agreements over the streamlined threshold, PPIAs, CNC status, and Offers in Compromise.

A tax professional licensed by the IRS to represent taxpayers in all matters before the agency, including audits, collections, and appeals. EAs must pass a three-part IRS exam or have qualifying IRS work experience. Along with CPAs and attorneys, EAs are authorized to practice before the IRS.

An IRS review of a taxpayer's return to verify accuracy. Indicated on the transcript by TC-420 (examination indicator) or TC-424 (examination request). An open or pending examination generally prevents an Offer in Compromise from being accepted and should be resolved before pursuing OIC.

A legal claim by the IRS against all of a taxpayer's current and future property and rights to property. Arises automatically when a tax is assessed, a demand for payment is made, and the taxpayer fails to pay. A Notice of Federal Tax Lien may also be filed publicly (TC-582 on the transcript). Liens affect credit, real estate transactions, and the ability to sell or transfer assets.

IRS Power of Attorney and Declaration of Representative. Authorizes a practitioner (EA, CPA, attorney) to represent a taxpayer before the IRS, receive transcripts, and act on the taxpayer's behalf. Filed with the CAF unit.

IRS Tax Information Authorization. Authorizes a designee to receive and inspect tax information but does not authorize them to represent the taxpayer in IRS proceedings. Lower authority than Form 2848.

An IRS administrative waiver that removes failure-to-file and failure-to-pay penalties for a taxpayer who has not been penalized in the prior three years, has filed all required returns, and has paid or arranged to pay the balance. Available once per taxpayer. No financial hardship analysis required. Often the fastest way to reduce a balance before pursuing another program.

A payment plan with the IRS where the taxpayer pays the full balance owed over time. Streamlined IAs (no financial analysis required) are available for individual balances under $50,000 with up to 72 months to pay. Larger balances require a Collection Information Statement (433-A or 433-F).

Relief from joint and several liability for taxes owed on a joint return, available when one spouse can demonstrate they were unaware of the underreported income or erroneous deduction. Three types: Innocent Spouse Relief (Form 8857), Separation of Liability Relief, and Equitable Relief.

The IRS's legal seizure of property to satisfy a tax debt. Can include wage garnishment, bank account seizures, seizure of accounts receivable, or physical property. Indicated by TC-668 on the transcript. An active levy is the highest-priority flag in RESO — it must be addressed before any resolution program can be established.

The removal of a federal tax lien after the balance is fully paid, an Offer in Compromise is accepted and paid, the CSED expires, or the lien is withdrawn. Occurs automatically within 30 days of full payment. Practitioners can also request lien withdrawal (not just release) in certain circumstances.

A settlement agreement between a taxpayer and the IRS to resolve a tax debt for less than the full amount owed. The IRS will accept an OIC when the offered amount equals or exceeds the taxpayer's Reasonable Collection Potential (RCP). Takes 6–24 months to process. All collection activity is suspended while an OIC is pending. Indicated by TC-694 (received) and TC-780 (accepted) on the transcript.

The IRS certification of a taxpayer as "seriously delinquent" to the State Department, resulting in refusal to issue or renew a US passport. Triggered when the balance owed exceeds $62,000 (indexed for inflation) and all administrative remedies have been exhausted. Indicated by TC-971 AC 641. Decertification (TC-971 AC 643) occurs within 30 days of any accepted IRS program — IA, PPIA, CNC, or OIC.

The reduction or elimination of IRS penalties. Two main types: First Time Abatement (FTA) for taxpayers with clean compliance history, and Reasonable Cause abatement for taxpayers who can demonstrate a legitimate reason for non-compliance (illness, natural disaster, reliance on bad professional advice).

A payment plan where the taxpayer's monthly payment is less than the amount required to pay the full balance before the CSED expires. The IRS accepts reduced payments, and when each year's CSED runs, the remaining balance for that year is legally extinguished. Requires a full financial analysis. The IRS reviews PPIAs periodically and can increase payments if the taxpayer's situation improves.

Authorization granted by a taxpayer to a practitioner to represent them before the IRS. Filed using Form 2848. Required for practitioners to receive transcripts, speak with IRS personnel, and act on behalf of the taxpayer in collection matters.

The IRS formula for calculating the minimum acceptable Offer in Compromise amount. RCP = Quick Sale Value of all assets (minus exemptions and encumbrances) + Future Income over the offer period (12 months for lump sum payment, 24 months for periodic payment plan). If the taxpayer can pay the RCP, the IRS will generally reject an OIC.

An IRS field collection employee assigned to collect delinquent accounts. RO cases involve direct personal contact and are generally more aggressive than ACS cases. Taxpayers with an assigned Revenue Officer must respond promptly and almost always need professional representation.

A legally enforceable federal tax debt exceeding $62,000 (adjusted annually for inflation) for which all administrative remedies have been exhausted. The legal basis for IRS passport certification. Balance includes tax, interest, and penalties.

The 10-year period from the date of assessment during which the IRS has the legal authority to collect a tax debt. Also known as the CSED. After the statute expires, the IRS cannot legally collect the balance and must release any existing federal tax liens.

Transaction Code 150. Indicates that the original return was filed and the tax was assessed. The TC-150 date is the starting point for CSED calculation.

Transaction Code 290. Indicates an additional tax assessment — often resulting from an audit, amended return, or IRS-initiated adjustment.

Transaction Code 420. Examination indicator — indicates the return has been selected for audit. An open TC-420 is a flag in RESO indicating an audit is in progress or pending.

Transaction Code 424. Examination request received — indicates the return has been requested for examination.

Transaction Code 520. Indicates a bankruptcy or litigation hold. The IRS is prohibited from collecting while the bankruptcy stay is in effect. TC-520 tolls the CSED for the duration of the bankruptcy plus 6 months.

Transaction Code 530. Indicates the account has been placed in Currently Not Collectible (CNC) status. The specific closing code (08, 09, 10, etc.) indicates the reason.

Transaction Code 582. Indicates a Notice of Federal Tax Lien has been filed. The lien is a public record and affects the taxpayer's credit and ability to transact with property.

Transaction Code 668. Indicates a levy has been issued. This is the highest-priority flag in RESO — an active levy must be addressed before any resolution program can be established.

Transaction Code 670. Indicates a payment was received and applied to the account.

Transaction Code 694. Indicates the IRS received an Offer in Compromise. Collection is suspended while the OIC is under review.

Transaction Code 780. Indicates an Offer in Compromise was accepted. Federal tax liens are released after final payment.

Transaction Code 971. A multipurpose miscellaneous action code. The specific action is determined by the Action Code (AC) that follows it. Common examples: TC-971 AC 524 (lien filing), TC-971 AC 641 (passport certification), TC-971 AC 643 (passport decertification).

The suspension or pausing of the CSED clock. Events that toll the CSED include: filing for bankruptcy, submitting an Offer in Compromise, requesting a Collection Due Process hearing, applying for innocent spouse relief, living outside the US, and certain installment agreement applications. RESO identifies all tolling events and calculates the adjusted CSED.

An IRS record of a taxpayer's account history. Types include Account Transcript (full account history per year), Wage and Income Transcript (W-2s, 1099s, and other information returns reported to the IRS), Record of Account (combined return and account data), and Tax Return Transcript (line-item copy of the original return).

An IRS record of all third-party information returns filed for a taxpayer — W-2s, 1099s, 1095s, K-1s, and others. Useful for reconstructing unfiled returns, verifying income reported to the IRS, and identifying income sources the taxpayer may not have disclosed.