Taxation & IRS Enforcement Glossary (A–Z) | Spanish-English
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Taxation & IRS Enforcement
The Certainty of Taxes: It is said that nothing is certain except death and taxes, and the American legal system dedicates immense resources to the latter. For the legal interpreter, this section is uniquely challenging because it blends accounting, statutory law, and enforcement procedure.
The Internal Revenue Service (IRS) has powerful tools to collect debts. Understanding the hierarchy of Audit, Deficiency, Lien, and Levy is essential for accurate courtroom interpretation.
Criminal vs. Civil: A critical distinction in this glossary is between civil negligence and criminal intent. Conveying the element of willfulness (mens rea) is paramount in criminal tax evasion trials.
Whether interpreting for a small business fighting a sales tax audit or a corporation facing a transfer pricing dispute, these terms form the language of fiscal accountability.
A
Abatement (Tax Abatement)Reducción o eliminación de impuestos
Definition: Reduction or cancellation of tax, penalty, or interest.
Notes: Granted for reasonable cause or administrative error.
Notes: Granted for reasonable cause or administrative error.
Adjusted Gross Income (AGI)Ingreso bruto ajustado (AGI)
Definition: Total taxable income after adjustments but before standard or itemized deductions.
Amended Return (1040-X)Declaración enmendada (1040-X)
Definition: Corrected tax return filed to fix mistakes or update information.
Appeals Office (IRS)Oficina de Apelaciones del IRS
Definition: Independent branch handling disputes between taxpayers and the IRS.
Asset Seizure (IRS Collection)Incautación de bienes
Definition: IRS action taking property such as vehicles or bank accounts to cover unpaid taxes.
Audit (IRS Audit)Auditoría del IRS
Definition: Examination of a tax return to verify accuracy and compliance.
B
Backup DocumentationDocumentación de respaldo
Definition: Records supporting deductions, credits, and income.
Backup WithholdingRetención de respaldo
Definition: Mandatory withholding from payments when taxpayer fails to provide a correct TIN.
Basis (Tax Basis)Base imponible / costo base
Definition: Original value of property used to calculate gain or loss on sale.
Brackets (Tax Bracket)Escalón fiscal / tramo impositivo
Definition: Income ranges taxed at specific percentages.
Business Expense DeductionDeducción de gastos comerciales
Definition: Costs that are ordinary and necessary for operating a business.
C
Capital Gains TaxImpuesto sobre ganancias de capital
Definition: Tax on profit from sale of assets such as real estate or stocks.
Capital Loss CarryoverTraslado de pérdidas de capital
Definition: Unused capital losses applied to future tax years.
Child Tax Credit (CTC)Crédito tributario por hijos
Definition: Credit for qualifying dependents.
Collection Due Process (CDP)Audiencia de debido proceso de cobro (CDP)
Definition: Taxpayer’s right to challenge liens or levies before Appeals.
Compromise Offer (OIC)Oferta de transacción (OIC)
Definition: IRS program allowing taxpayers to settle tax debt for less than the full amount.
Corporate Tax ReturnDeclaración de impuestos corporativos
Definition: Annual income tax return for U.S. corporations (Form 1120).
D
Deduction (Tax)Deducción fiscal
Definition: Amount subtracted from taxable income (Standard or Itemized).
Deferred Tax LiabilityPasivo por impuestos diferidos
Definition: Taxes owed in the future due to timing differences.
Deficiency NoticeAviso de deficiencia
Definition: IRS letter stating additional taxes are owed (90-day letter).
Delinquent Tax NoticeAviso de impuesto atrasado
Definition: IRS notice informing taxpayer of overdue tax.
Dependency ExemptionExención por dependencia
Definition: Deduction allowed for qualifying children or relatives.
Depreciation (Tax)Depreciación fiscal
Definition: Deduction for decline in value of business property over time.
Disallowed DeductionDeducción denegada
Definition: Expense the IRS removes from a return due to lack of eligibility.
E
Earned Income Tax Credit (EITC)Crédito por ingreso del trabajo (EITC)
Definition: Refundable credit for low-to-moderate income workers.
Eggshell AuditAuditoría frágil
Definition: Audit with underlying risk of criminal exposure for underreporting.
Employment Tax ExaminationExamen de impuestos laborales
Definition: IRS audit of payroll tax compliance (W-2 vs 1099).
Estate TaxImpuesto sobre el patrimonio
Definition: Tax on the transfer of property upon death.
Estimated Quarterly TaxesImpuestos trimestrales estimados
Definition: Payments made quarterly by self-employed individuals.
Estimated Tax PenaltyMulta por impuestos estimados
Definition: Penalty for insufficient quarterly estimated payments.
ExemptionsExenciones tributarias
Definition: Amounts excluded from taxation for dependents.
F
Failure-to-Pay PenaltyMulta por falta de pago
Definition: Penalty for not paying taxes owed by the deadline.
Federal Tax LienGravamen fiscal federal
Definition: Government’s legal claim on taxpayer’s property for unpaid taxes.
Filing StatusEstado civil para declarar impuestos
Definition: Category determining tax rates and deductions.
FBARInforme de cuentas bancarias en el extranjero (FBAR)
Definition: Required annual report for foreign accounts over $10,000.
Frivolous Tax Return PenaltyMulta por declaración fiscal frívola
Definition: Penalty for filing a return with false or unreasonable positions.
FUTA TaxImpuesto FUTA
Definition: Federal Unemployment Tax paid by employers.
G
Garnishment (Wage)Embargo salarial
Definition: Withholding from paycheck to satisfy tax debt without court order.
Gift TaxImpuesto sobre donaciones
Definition: Tax on the transfer of property where nothing is received in return.
Government Offset Program (TOP)Programa de compensación del gobierno (TOP)
Definition: Intercepts refunds to pay overdue federal debts.
Graduated TaxImpuesto progresivo
Definition: Tax rate increases as income increases.
Gross IncomeIngreso bruto
Definition: All income before deductions (wages, interest, etc.).
Gross Receipts TaxImpuesto sobre ingresos brutos
Definition: Tax on total revenue rather than profit.
H
Hardship Status (CNC)Estado de dificultad económica (CNC)
Definition: IRS designation delaying collection due to inability to pay.
Head of HouseholdJefe de familia
Definition: Favorable filing status for those supporting a dependent.
Hobby Loss RuleRegla de pérdidas por actividades recreativas
Definition: Limits deductions for non-business activities.
Household Employment TaxesImpuestos por empleo doméstico
Definition: Taxes owed by people who hire domestic workers (Schedule H).
Housing Exclusion (Foreign)Exclusión de vivienda en el extranjero
Definition: Allows qualified U.S. expats to exclude housing expenses.
I
Identity Theft PIN (IP PIN)PIN de protección contra robo de identidad
Definition: IRS code preventing fraudulent filings.
Identity VerificationVerificación de identidad (Formulario 5071C)
Definition: IRS process confirming identity before processing return.
Information Return (Form 1099)Declaración informativa
Definition: Reports income other than wages (contractors, interest).
Innocent Spouse ReliefAlivio para cónyuge inocente
Definition: Protection from liability when spouse files fraudulent return.
Installment AgreementAcuerdo de pago a plazos
Definition: Monthly payment plan to resolve tax debt.
IRC (Internal Revenue Code)Código de Rentas Internas
Definition: Federal statutory tax law (Title 26).
IRS LevyEmbargo del IRS
Definition: Legal seizure of property (wages, bank accounts, assets).
Itemized DeductionDeducción detallada
Definition: Expenses (Schedule A) subtracted from AGI (e.g. mortgage interest).
J
Jeopardy AssessmentEvaluación por peligro inminente
Definition: Immediate tax assessment when IRS believes taxpayer may flee.
Joint Liability (Tax)Responsabilidad conjunta
Definition: Both spouses liable for full tax on a joint return.
Joint ReturnDeclaración conjunta
Definition: Combined filing for married couples.
Judgment for TaxesSentencia por impuestos adeudados
Definition: Court ruling confirming tax debt, allowing expanded enforcement.
K
K-1 FormFormulario K-1
Definition: Reports partner/shareholder income for pass-through entities.
Key Documentation RequestSolicitud de documentación clave
Definition: Specific records the IRS demands during an audit.
KickbackSoborno / devolución ilegal
Definition: Illegal payments that remain taxable income.
L
Late Filing PenaltyMulta por presentar tarde
Definition: Penalty for missing the tax return deadline.
Letter 5071CCarta 5071C
Definition: IRS letter requiring identity verification.
Levy ReleaseLevantamiento de embargo
Definition: Removal of an IRS levy after payment or hardship.
Lien WithdrawalRetiro de gravamen
Definition: Removal of lien from public record.
Loss CarryforwardPérdida fiscal trasladada
Definition: Losses from prior years used to offset future income.
M
Marginal Tax RateTasa impositiva marginal
Definition: Rate applied to the last dollar earned in a progressive system.
Material ParticipationParticipación material
Definition: Level of involvement required for certain tax benefits.
Missing W-2 RequestSolicitud de transcripción salarial
Definition: Request for IRS records when W-2 is not issued.
Money LaunderingLavado de dinero
Definition: Concealing illegal income (investigated by IRS CI).
Monthly Installment PlanPlan de pagos mensuales
Definition: Monthly tax payment agreement accruing interest.
N
Net Operating Loss (NOL)Pérdida operativa neta
Definition: Result when business expenses exceed income.
Non-FilerNo declarante
Definition: Individual who fails to file required tax returns.
Non-Resident AlienExtranjero no residente
Definition: Person not meeting U.S. residency rules for tax.
Non-Willful PenaltyMulta por falta no intencional
Definition: Penalty for unintentional reporting mistakes (FBAR).
NFTLAviso de gravamen fiscal federal (NFTL)
Definition: Public notice of government claim against property.
Notice of Intent to LevyAviso de intención de embargo
Definition: Final warning before actual seizure of property.
O
Offer in CompromiseOferta de transacción
Definition: Settle tax debt for less than full amount due to inability to pay.
Office AuditAuditoría en oficina
Definition: IRS document review conducted in-person at an agency office.
Offset (Refund Offset)Compensación
Definition: Refund intercepted to pay child support or other debts.
Ordinary IncomeIngreso ordinario
Definition: Income taxed at standard graduated rates.
OverpaymentExceso de pago
Definition: Paying more tax than owed, leading to a refund.
P
Payroll TaxImpuesto sobre la nómina
Definition: Employer withholding taxes.
Trust Fund Recovery Penalty (TFRP)Penalidad del fondo fiduciario de nómina
Definition: 100% penalty for failing to remit payroll taxes.
Penalty AbatementReducción de multas
Definition: Removal of penalties for reasonable cause.
Penalty Notice (CP14)Aviso de multa (CP14)
Definition: First balance-due notice showing amount with penalties.
Phantom IncomeIngreso fantasma
Definition: Taxable income without actual cash received (K-1).
Power of Attorney (Form 2848)Poder legal
Definition: Document authorizing a representative to act before the IRS.
Q
Qualified Business Income Deduction (QBI)Deducción por ingreso empresarial calificado
Definition: Deduction up to 20% of qualified income for small businesses.
Qualified DividendDividendo calificado
Definition: Dividend taxed at lower rates after meeting holding period.
Qualified Retirement PlanPlan de jubilación calificado
Definition: IRS-approved plan (401k/IRA) with tax benefits.
Quarterly Estimated Tax PaymentsPagos estimados trimestrales
Definition: Required periodic payments to avoid penalties.
R
Reasonable Cause ExceptionExcepción por causa razonable
Definition: Penalty removal for circumstances beyond control.
Refund InterceptIntercepción de reembolso
Definition: Seizure of refund to satisfy debts.
Residency TestPrueba de residencia (prueba de presencia sustancial)
Definition: Formula determining resident status for tax purposes.
Return TranscriptTranscripción de la declaración
Definition: Official summary of a filed tax return.
Revenue Officer (IRS)Oficial de recaudación
Definition: Field agent enforcing collections through levies or seizures.
S
Self-Employment TaxImpuesto por trabajo por cuenta propia
Definition: Social Security/Medicare for independent workers (Schedule SE).
Standard DeductionDeducción estándar
Definition: Fixed dollar amount reducing taxable income.
Statute of Limitations – AuditPlazo de prescripción – auditoría
Definition: Generally 3 years for the IRS to assess tax.
Statute of Limitations – CollectionPlazo de prescripción – cobro
Definition: 10-year period for the IRS to collect assessed debt.
Structured SettlementAcuerdo estructurado
Definition: Periodic lawsuit payments (some types taxable).
Substitute for Return (SFR)Declaración sustitutiva
Definition: Return filed by the IRS for a non-filer.
Summons (IRS)Citación del IRS
Definition: Legal demand requiring production of records or testimony.
T
Tax AuditAuditoría fiscal
Definition: IRS review of taxpayer return for compliance.
Tax Court PetitionPetición ante el Tribunal Tributario
Definition: Formal legal challenge to an IRS deficiency notice.
Tax DeficiencyDeficiencia tributaria
Definition: Amount the IRS claims is owed beyond what was reported.
Tax EvasionEvasión fiscal
Definition: Willful avoidance of taxes; a criminal offense.
Trust Fund TaxesImpuestos de fondos fiduciarios
Definition: Withheld payroll taxes not yet remitted by an employer.
U
Uncollectible Status (CNC)Estado no cobrable
Definition: Temporary halt of collection due to extreme hardship.
Underpayment PenaltyMulta por pago insuficiente
Definition: Penalty for not paying enough tax throughout the year.
UnderreportingSubdeclaración de ingresos
Definition: Reporting less income than earned, a common audit trigger.
Unfiled ReturnsDeclaraciones no presentadas
Definition: Failure to submit required tax documentation.
V
Virtual Currency ReportingDeclaración de moneda virtual
Definition: Reporting requirement for cryptocurrency transactions.
Voluntary DisclosurePrograma de divulgación voluntaria
Definition: Reporting unreported income to avoid criminal prosecution.
Voluntary Withholding AgreementAcuerdo voluntario de retención
Definition: Request for extra withholding to avoid underpayment.
W
Wage and Income TranscriptTranscripción de salarios e ingresos
Definition: IRS summary of income forms (W-2, 1099).
Wage LevyEmbargo salarial
Definition: IRS seizure of a paycheck until the debt is resolved.
Willful Failure to FileIncumplimiento intencional de presentar
Definition: Deliberate criminal refusal to file required returns.
WithholdingRetención de impuestos
Definition: Money deducted from paychecks and credited toward annual liability.
Withholding AllowanceAsignación de retención
Definition: Number affecting paycheck withholding and potential refund.
Z
Zero Balance LetterCarta de saldo cero
Definition: IRS confirmation that no tax is owed.
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