GlossaryGuide

Luxury Tax A tax paid on expensive goods and services considered by the government to be nonessential.

Long-Distance Telephone Tax Refund Taxpayers are eligible to file for refunds of all excise tax they have paid on long-distance service billed to them after Feb. 28, 2003.

Lobbyist A person who represents the concerns or special interests of a particular group or organization in meetings with lawmakers. Lobbyists work to persuade lawmakers to change laws in the group’s favor.

IRS e-file Refers to the preparation and transmission of tax return information to the IRS using telephone lines or a computer with a modem or Internet access.

Investment Income Includes taxable and tax-exempt interest, dividends, capital gains net income, certain rent and royalty income, and net passive activity income.

Internal Revenue Service (IRS) The federal agency that collects income taxes in the United States.

Intermediate Service Provider Assists in processing tax return information between the ERO (or the taxpayer, in the case of online filing) and the Transmitter.

Interest Income The income a person receives from certain bank accounts or from lending money to someone else.

Interest The charge for the use of borrowed money.

Informal Tax Legislation Process Individuals and interest groups expressing and promoting their opinions about tax legislation.