Tag: CR
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Credit for Prior Year Minimum Tax
Credit for Prior Year Minimum Tax means:a credit or other debt instrument against regular income tax liability allowed for alternative minimum tax paid in a previous year. The credit is generally the amount of tax paid, reduced by the portion that was generated by the following exclusion items: …
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Credit for Qualified Electric Vehicles
Credit for Qualified Electric Vehicles means:a nonrefundable credit of 10% of the cost of a qualified electric vehicle placed in service after June 30, 1993, and before January 1, 2005. The maximum credit is $4,000 per vehicle. A qualified electric vehicle is a motor vehicle powered by rechargea…
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Criminal Penalty
Criminal Penalty means:a severe sanction against a taxpayer, as contrasted with a civil sanction. The U.S. Internal Revenue Service must prove intent on the part of the taxpayer. See Former IRC (check if this IRC provision is current her…
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Creditable Foreign Tax
Creditable Foreign Tax means:a tax qualifying for the foreign tax credit. The predominant character of the tax must be that of an income tax in the U.S. sense. Three requirements must be met: realization, gross receipts, and net income. A taxpayer may elect to claim a foreign tax credit only for…
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Crummey Power
Crummey Power means:the beneficiaries' noncumulative power to invade a trust's corpus during a brief period of each year, to the extent often limited to $10,000 or to $5,000 or 5% of the corpus (whichever is greater)….
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Cross-crediting
Cross-crediting means:the application of high foreign taxes paid on certain types of income to reduce the U.S. tax on passive types of income, which typically are subject to low foreign tax….
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Creeping Inflation
Creeping Inflation means:slow but inexorable continuing inflation, which, though it seems tolerable in the short run, nonetheless leads to significant long-run price increases. A sustained inflation of 2% per year will cause prices to increase over fivefold in a century. Because of our progressi…
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Criminal Investigation Division
Criminal Investigation Division means:the part of the U.S. Internal Revenue Service that conducts tax audits when criminal fraud is suspected. A member of this division is called a special agent….
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Creditor
Creditor means:a person (individual or entity) who has extended credit and to whom money is owed; a lender. Contrast debtor….