Back taxes
An informal term for taxes associated with past years. Missing returns and unpaid balances are different issues and may require different work.
Bookkeeping & Tax Glossary
Plain-language explanations of the terms you may see during a tax cleanup assessment. Use the index to find a term, or browse by topic.
Reviewed October 1, 2026. General information; your practitioner checks the relevant year, jurisdiction and case facts.
Full term index
- Acknowledged or accepted
- Amended return
- Assessment consultation
- Back taxes
- Books cleanup
- Change order
- Corporation
- Corrected information return
- Engagement
- Enrolled agent (EA)
- Estimated tax
- Expense reconstruction
- Federal tax lien
- Filing status
- First Time Abate
- Form 1099
- Form W-2
- Income reconciliation
- Installment agreement
- IRS notice
- IRS representation
- Itemized proposal
- Levy
- LLC
- Notice identifier
- Partnership
- Past-due return
- Penalty relief
- Response deadline
- Schedule C
- Sole proprietor
- State tax scope
- Submitted
- Substitute for return
- Tax account transcript
- Tax credit
- Tax deduction
- Tax preparation
- Tax return transcript
- Tax year
- Unfiled return
- Unresolved item
- Wage-and-income transcript
- Withholding
- Written filing plan
Filing basics
Unfiled return
A return that has not been submitted. A practitioner checks whether it was required and what filing history the agency records show.
Past-due return
A required return submitted after its applicable due date. Preparing the return and addressing any balance or notice are separate tasks.
Amended return
A return used to correct a previously filed return. Individual federal corrections commonly use Form 1040-X; the relevant year and change need review.
Tax year
The reporting period associated with a return. It can differ from the year in which a late return is prepared.
Filing status
An individual-return category based on applicable personal circumstances and rules. It affects how the return is calculated.
Tax deduction
An eligible amount that reduces income used to calculate tax. A deduction is different from a dollar-for-dollar tax credit.
Tax credit
An eligible amount applied against tax. Some credits are refundable; eligibility and refund treatment depend on the specific credit.
Withholding
Tax amounts collected from certain payments and paid to the government on the taxpayer’s behalf.
Estimated tax
Payments during the year toward expected tax that may not be covered by withholding. Required amounts and timing need year-specific review.
Substitute for return
A return the IRS may prepare when a taxpayer has not filed. It may omit deductions or credits the taxpayer could substantiate.
Records & self-employment
Wage-and-income transcript
An IRS record of reported information returns. It is a useful source, but it does not establish every business receipt or deductible expense.
Tax return transcript
An IRS summary of information from a processed return. It is different from the full original return and supporting documents.
Tax account transcript
An IRS record containing account information and changes. It serves a different purpose from a wage-and-income transcript.
Form W-2
An employer report of employee wage and withholding information used in preparing the relevant return.
Form 1099
A family of information returns covering different payment types. The specific form matters; a 1099 alone does not determine taxable business profit.
Schedule C
A schedule used to report profit or loss from an activity operated as a sole proprietorship, subject to the form’s rules.
Sole proprietor
An individual operating an unincorporated business. The relevant return and schedules depend on the actual activity and facts.
LLC
A limited liability company organized under state law. The name alone does not establish its federal tax treatment.
Partnership
A business arrangement that may have partnership filing requirements. Entity facts and tax classification require professional review.
Corporation
A business entity with tax filing requirements determined by its classification and applicable elections. Business and owner returns are not interchangeable.
Expense reconstruction
Our service term for organizing and recovering evidence of business expenses. The practitioner still determines what can be supported and reported.
Meaning in our service process.
Income reconciliation
Our process for checking reported amounts against records, including corrected forms, overlap and receipts absent from information reports.
Meaning in our service process.
Corrected information return
A replacement or correction to an information report. Both versions need review so an amount is not silently counted twice.
Meaning in our service process.
Books cleanup
Our service term for organizing business accounting records before preparation. It does not automatically include every tax filing.
Meaning in our service process.
IRS notices & payments
IRS notice
A letter or notice explaining an account matter, change or requested action. Read the full document and its instructions, not just the notice identifier.
Notice identifier
A code or letter reference used to identify an IRS communication. It does not by itself establish the taxpayer’s facts or required response.
Response deadline
The date or period specified for action on a notice. A practitioner should verify applicable timing and the required response.
Installment agreement
An arrangement to pay a tax balance in installments. Eligibility and terms require review; requesting one does not guarantee approval.
Penalty relief
Removal or reduction of a penalty under an applicable relief provision. Eligibility is fact-specific and is not promised by our service.
First Time Abate
An administrative penalty-relief category often referred to as first-time abatement. Procedures are changing; the applicable return dates and current IRS guidance must be checked.
Federal tax lien
The government’s legal claim against property associated with unpaid tax. It is different from a levy.
Levy
A legal seizure of property to satisfy tax debt. A levy-related issue needs prompt qualified professional attention.
Working with a practitioner
Enrolled agent (EA)
A federally authorized tax practitioner credential. Verify enrollment and match the practitioner’s experience to the work needed.
Assessment consultation
Our proposed practitioner consultation to review the facts and deliver a written filing plan and itemized proposed scope. It does not itself file returns.
Meaning in our service process.
Written filing plan
Our assessment output identifying work to review, record gaps, open questions and the proposed sequence. Further investigation is stated when needed.
Meaning in our service process.
Itemized proposal
The proposed services and fees listed by taxpayer or entity, return, year or period, jurisdiction and other scoped work.
Meaning in our service process.
Engagement
The accepted written agreement defining the practitioner, services, fees, exclusions and client responsibilities.
Meaning in our service process.
Change order
An approved written change to an accepted scope or fee. Added client charges require approval before the added work begins.
Meaning in our service process.
Tax preparation
Professional work to prepare the named returns from reviewed facts. It does not automatically include every notice response or representation task.
Meaning in our service process.
IRS representation
Separately authorized practitioner work with the agency on the matters named in an engagement. Intake alone does not establish representation.
Meaning in our service process.
Submitted
Our status for a return or response sent through its defined route, with evidence. It is different from agency acknowledgment or a resolved case.
Meaning in our service process.
Acknowledged or accepted
Our status for receipt or acceptance evidence from the applicable filing process. It does not guarantee approval of deductions, relief or a payment arrangement.
Meaning in our service process.
State tax scope
The specifically named state returns or agency tasks in an engagement. Federal preparation does not automatically include state work.
Meaning in our service process.
Unresolved item
A question, missing record, filing or agency task that remains open. A case can contain completed returns and unresolved items at the same time.
Meaning in our service process.