Ability to pay A concept of tax fairness that states that people with different amounts of wealth or different amounts of income should pay tax at different rates. Wealth includes assets such as houses, cars, stocks, bonds, and savings accounts. Income includes wages, interest and dividends, and other payments
Category: IRS
IRS Glossary of Terms
A AARP American Association of Retired Persons Accrual method Accounting method that reports income when earned (not necessarily received) and expenses when incurred (not necessarily paid), as opposed to the cash method. (Out of scope for the VITA/TCE programs.) Active Participation When a taxpayer makes significant rental or business management decisions, such as approving rental… Continue reading IRS Glossary of Terms
IRS Acronyms and Definition of Terms
Acronyms or Terms Name or Definition of Terms AB Advocate Advisory Board ACA Affordable Care Act ACS Automated Collection System Adj or adjmt Adjustment Advocacy Initiative The overall advocacy process: from identification of the underlying Advocacy Issue through implementation of the accepted Advocacy Proposal. Advocacy Issue The underlying problem or issue that creates disservice or… Continue reading IRS Acronyms and Definition of Terms