Collection Due Process (CDP). The 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 Internal Revenue Service (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). There are 73 LTA offices with case advocates working directly with taxpayers to resolve their tax issues. At least one LTA is located in each state and 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 represent low-income taxpayers before the IRS in audit, appeals and collection issues, and federal tax litigation, for free or for a nominal charge. LITCs receive partial funding from the IRS; however, clinics and their volunteers are completely independent of the federal government. Non-profit organizations, law schools or business schools operate the clinics. For more information, visit the LITC section of the IRS Web site, or the LITC Resource Center.
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 Collectibility, 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 National Taxpayer Advocate'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 "Enter SAMS."
Taxpayer Advocate Directive (TAD). The National Taxpayer Advocate 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 National Taxpayer Advocate, TAS Area Advocates and Local Taxpayer Advocates.
Taxpayer Advocacy Panel (TAP). Formerly known as the Citizen Advocacy Panel (CAP), TAP was established under the Federal Advisory Committee Act in June 1998 to improve IRS responsiveness to taxpayer needs and monitor the quality of taxpayer service. The panel has 100 members with at least one representative from each state, the District of Columbia and Puerto Rico. TAP listens to taxpayers, identifies taxpayers' issues and makes suggestions for improving IRS service and customer satisfaction. Copies of all reports, event information and proposals to the IRS can be found on TAP's Web site at www.improveirs.org.
Taxpayer Advocate Service (TAS). TAS is an independent organization within the IRS. TAS provides a system to ensure tax problems that have not been resolved through normal channels are promptly and fairly handled.