Author: John Baer

  • Circular 230

    Circular 230 means: an U.S. Internal Revenue Service (IRS) publication that sets forth the requirements and responsibilities of professional preparers of tax returns. The statement details educational, ethical, and procedural guidelines. Treasury Department Circular No. 230 – Regulations […]

  • Tenancy By the Entirety

    Tenancy By the Entirety Tenancy By the Entirety means:a form of joint ownership for real estate that exists only between husband and wife with equal rights of possession and enjoyment during their joint lives and with the right of survivorship; that is, when one dies, the property goes […]

  • Grantor Trust

    Grantor Trust means:a trust that has beneficiaries other than the grantor but, because interests or certain powers over the trust, are retained, all income of the trust is taxed to the grantor. Former IRC (check if this IRC provision is current here) §§671-677. Description and […]

  • Audit

    Tax Audit Audit means: an examination and verification, in a taxation context, of a taxpayer's books and records by the U.S. Internal Revenue Service. Examination and verification carried out by an outside agency (such as an accountancy firm or the tax authorities) of a taxpayer's books and […]

  • Tax-sheltered Annuity

    Tax-sheltered Annuity Tax-sheltered Annuity means:a retirement plan invested in annuities or a mutual fund custodial account for employees of a public school system or an exempt educational, charitable, or religious organization. The employee's rights must be nonforfeitable, and the […]

  • Severance Pay

    Severance Pay means:an income bridge provided by some employers for employees going from employment to unemployment. Severance pay is taxable in the year received. Description and Definition of Severance Pay Money paid by an employer at the end of employment. Severance pay is taxable. […]

  • Wash Sale

    Wash Sale means:a sale or other disposition of stock or securities at a loss accompanied by a purchase of substantially identical stock or securities during a period beginning 30 days before the date of sale or other disposition and ending 30 days after that date-a total of 61 days. The […]

  • Employer Identification Number

    About Employer Identification Number: An Employer Identification Number (EIN) is a taxpayer identification number for an entity other than an individual, such as a partnership, corporation, estate, or trust. See Employer Identification Number and Employer Identification Number. A federal […]

  • Vacation Home

    Vacation Home means:a dwelling used by its owner occasionally for recreational or resort purposes; it may be rented to others for a portion of the year. Income tax deductions pertaining to vacation homes depend on the frequency of use by the owner. Generally a business loss cannot be […]

  • Prepaid Expenses

    The Prepaid Expenses are. amounts that are paid before the period they cover. Such expenses often include insurance and rent. Prepaid expenses are not deductible until the appropriate period. See also other Tax Terms and Definitions in U.S.A. economic performance rule. Description and […]