| 1040-NR | The U.S. income-tax return for non-resident aliens with U.S.-source or effectively-connected income. |
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| 1099-NEC | The form a business issues to a contractor paid $600 or more in a year. Due January 31. |
| ABC test (AB 5) | California's test for whether a worker is an employee or a contractor. Most workers are employees unless all three prongs are met. |
| Basis | Your tax investment in an asset or an entity; it determines gain on sale and whether losses can be deducted. |
| CAA (Certifying Acceptance Agent) | An IRS-authorized agent who can certify identity documents for an ITIN application so originals are not mailed. |
| CDTFA | California Department of Tax and Fee Administration — the sales and use tax authority. |
| CP2000 | An IRS notice proposing changes because income reported to the IRS does not match your return. It is not an audit, but it has a 30-day deadline. |
| Circular 230 | The Treasury regulations governing practice before the IRS by enrolled agents, CPAs and attorneys. |
| EIN | Employer Identification Number — the federal tax ID for a business. Obtainable without an SSN. |
| Estimated tax | Quarterly prepayments of income and self-employment tax for people without enough withholding. Due April 15, June 15, September 15, January 15. |
| FBAR (FinCEN 114) | Annual report of foreign financial accounts when their combined value exceeded $10,000 at any time in the year. |
| Form 2848 | Power of attorney authorizing a representative to deal with the IRS on your behalf. |
| Form 5472 | Information return for a U.S. corporation, or a foreign-owned single-member LLC, with a 25%-or-more foreign owner. Penalty for non-filing: $25,000. |
| Form 8879 | E-file signature authorization for an individual return. |
| Franchise tax (California) | The $800 minimum annual tax every California LLC and corporation owes, plus an LLC fee based on gross receipts. |
| Installment agreement | A monthly payment plan with the IRS for a balance you cannot pay at once. |
| ITIN | Individual Taxpayer Identification Number — issued by the IRS to people who need a tax ID but are not eligible for an SSN. |
| K-1 | The schedule from a partnership, S-Corporation or trust reporting each owner's share of income and deductions. |
| Nexus | A connection to a state strong enough that the state can require you to collect its sales tax or file its returns. |
| Offer in compromise | A settlement of an IRS debt for less than the full amount, available when the IRS agrees you cannot pay in full. |
| Pass-through entity | An S-Corporation, partnership or LLC whose income is taxed on the owners' returns rather than at the entity level. |
| Penalty abatement | Removal of IRS penalties for first-time offenders or for reasonable cause. |
| Reasonable compensation | The salary an S-Corporation owner-employee must be paid before taking distributions. |
| Registered agent | The person or company designated to receive legal and state notices for an entity in the state where it is registered. |
| S-Corporation election | Form 2553, which lets an LLC or corporation be taxed as an S-Corporation. |
| Sales tax vs. use tax | Sales tax is collected by the seller at sale; use tax is owed by the buyer on taxable purchases where no sales tax was charged. |
| Statement of Information | California's periodic report of an entity's officers, address and agent — annually for corporations, every two years for LLCs. |
| Streamlined filing procedures | An IRS program for U.S. persons who non-wilfully missed foreign-account and income reporting, with reduced or no penalties. |
| Tax treaty | An agreement between the U.S. and another country that reduces or eliminates double taxation and sets withholding rates. |
| W-8BEN / W-8BEN-E | Certificates a foreign individual or entity gives a U.S. payer to claim treaty benefits and establish foreign status. |
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