Key Terms
For help understanding common tax terms, click the links below.
- Collection Due Process (CDP)
- Earned Income Tax Credit (EITC)
- Individual Taxpayer Identification Number (ITIN)
- Local Taxpayer Advocate (LTA)
- Low Income Taxpayer Clinics (LITC)
- National Taxpayer Advocate (NTA)
- Offer in Compromise (OIC)
- Office of Systemic Advocacy
- Systemic Advocacy Management System (SAMS)
- Taxpayer Advocate Directive (TAD)
- Taxpayer Assistance Order (TAO)
- Taxpayer Advocacy Panel (TAP)
- Taxpayer Advocate Service (TAS)
Collection Due Process (CDP) – A CDP hearing provides a taxpayer with an independent review conducted by an appeals officer of a lien or proposed tax levy action filed against them by the IRS. The hearing assures IRS actions are warranted and procedurally correct. The hearing's findings may allow a reduction or elimination of the taxpayer's liability.
Earned Income Tax Credit (EITC) – The EITC is a refundable tax credit for low income, working taxpayers. The amount of the credit is based on income, filing status and number of qualifying children, if any.
Individual Taxpayer Identification Number (ITIN) – An ITIN is a tax processing number issued by the IRS to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for Social Security numbers. ITINs are for federal tax reporting and are not intended to serve any other purpose.
Local Taxpayer Advocate (LTA) – LTAs and their employees (Case Advocates) work directly with taxpayers to resolve their tax issues. There is at least one LTA in every state, the District of Columbia, and Puerto Rico, and at each IRS campus (processing center). Each LTA is also assigned an advocacy portfolio, for which he or she serves as a TAS representative from a national perspective.
Low Income Taxpayer Clinics (LITC) – LITCs are independent from the IRS. Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. For more information and to find a clinic near you, see the LITC page on www.irs.gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. This publication is also available by calling 1-800-829-3676 or at your local IRS office.
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National Taxpayer Advocate (NTA) – The NTA is responsible for advocating changes in tax law to reduce taxpayer burden, identifying ways the IRS can improve taxpayer services and IRS effectiveness, and recommending systemic changes to resolve problems encountered by taxpayers.
Offer in Compromise (OIC) – An OIC is an agreement between a taxpayer and the IRS to settle the taxpayer's tax debt with less than full payment. The offer may be submitted for any of three reasons: Doubt as to Collectability, Doubt as to Liability or Effective Tax Administration.
Office of Systemic Advocacy – The Office of Systemic Advocacy promotes systemic and procedural change, both reactively and proactively. It focuses on issues that impact multiple taxpayers. The office also helps coordinate and produce the NTA's Annual Report to Congress each year.
Systemic Advocacy Management System (SAMS) – SAMS is a database of systemic issues and advocacy projects. It allows IRS employees and the public to electronically submit issues directly to the TAS Office of Systemic Advocacy for review, analysis and potential development as projects. Issues must relate to IRS policies and procedures and must affect multiple taxpayers. Taxpayers, practitioners, and others can submit issues directly to the TAS Office of Systemic Advocacy by clicking this link, Systemic Advocacy, and scrolling down to the "Enter SAMS" button.
Taxpayer Advocate Directive (TAD) – The NTA has the sole authority to issue a TAD, which addresses a system-wide administrative or procedural problem affecting many taxpayers. A TAD may only be used to order specific actions to protect taxpayers' rights, prevent undue burden, ensure equitable treatment of taxpayers or provide an essential service to taxpayers.
Taxpayer Assistance Order (TAO) – This TAS procedure may order the IRS to take an action, cease an action, or review a decision. A TAO may be issued by the NTA, TAS Area Directors, and LTAs.
Taxpayer Advocacy Panel (TAP) – Taxpayers have an opportunity to provide direct input to the IRS through TAP. TAP is an independent panel of citizen volunteers who listen to taxpayers, identify taxpayers’ issues, and make suggestions for improving IRS service and customer satisfaction. Contact TAP at www.improveirs.org.
Taxpayer Advocate Service (TAS) – TAS is an independent organization within the IRS. We help taxpayers who are experiencing economic difficulties, such as not being able to provide necessities like housing, transportation, or food; taxpayers who are seeking help in resolving problems with the IRS; and those who believe an IRS system or procedure is not working as it should.
