Glossary
Navigate the Legal Landscape with our Comprehensive Glossary of Common Legal Terms in Tax, Estate, Bankruptcy, Debt Relief, and Business Legal Services
Tax Law legal terms commonly used:
Adjusted Basis - The cost or value of an asset for tax purposes, after accounting for any adjustments or depreciation.
Audit - An examination of a taxpayer's financial records and tax returns by the IRS or state tax authority to ensure compliance with tax laws.
Capital Gain - The profit earned from selling an asset that has increased in value since it was purchased.
Deduction - An amount that can be subtracted from taxable income to reduce the amount of tax owed.
Depreciation - A tax deduction that allows businesses to recover the cost of certain assets over time.
Estate Tax - A tax on the transfer of property after someone's death.
Exemption - A deduction allowed by law that reduces taxable income for a specific purpose, such as supporting dependents.
Filing Status - The classification used to determine the tax rate and standard deduction for a taxpayer, such as single, married filing jointly, or head of household.
Income Tax - A tax on an individual's or business's income.
Installment Agreement - A payment plan that allows taxpayers to pay their tax debt over time.
Levy - The legal seizure of property to satisfy a tax debt.
Offer in Compromise - A settlement agreement between a taxpayer and the IRS that allows the taxpayer to pay less than the full amount owed.
Penalties - Fines assessed by the IRS or state tax authority for failure to comply with tax laws, such as late payment or nonpayment of taxes.
Refund - The amount of money returned to a taxpayer who overpaid their taxes during the year.
Tax Credit - A dollar-for-dollar reduction in the amount of tax owed.
Tax Lien - A legal claim on a taxpayer's property to secure payment of a tax debt.
Tax Return - A form filed with the IRS or state tax authority that reports income, deductions, and taxes owed.
Withholding - The amount of tax withheld from an employee's paycheck by their employer and remitted to the IRS or state tax authority on their behalf.
IRS (Internal Revenue Service) legal terms commonly used:
1099 Form - A form that reports income paid to an individual who is not an employee, such as a freelancer or independent contractor.
Audit - An examination of a taxpayer's financial records and tax returns by the IRS to ensure compliance with tax laws. Collection Due Process (CDP)
Hearing - A hearing in which a taxpayer can challenge the IRS's collection actions, such as wage garnishment or bank levies. Delinquent
Tax Return - A tax return that is filed after the due date or not filed at all.
Estimated Tax - A payment made by self-employed individuals or those with other types of income that are not subject to withholding to cover their tax liability.
Innocent Spouse Relief - A form of relief available to an individual who was unaware of their spouse's tax liabilities.
Installment Agreement - A payment plan that allows taxpayers to pay their tax debt over time.
Offer in Compromise - A settlement agreement between a taxpayer and the IRS that allows the taxpayer to pay less than the full amount owed.
Power of Attorney - A legal document that authorizes someone to act on behalf of another person, such as representing them before the
IRS. Refund - The amount of money returned to a taxpayer who overpaid their taxes during the year.
Statute of Limitations - The time limit the IRS has to assess additional taxes or initiate collections actions.
Taxable Income - The amount of income subject to federal income tax after deductions and exemptions have been taken into account.
Tax Evasion - The intentional failure to report or underreport income to the IRS.
Tax Lien - A legal claim on a taxpayer's property to secure payment of a tax debt.
Tax Return - A form filed with the IRS that reports income, deductions, and taxes owed.
Taxpayer Advocate - An independent office within the IRS that assists taxpayers in resolving disputes with the agency.
Trust Fund Recovery Penalty - A penalty assessed against responsible individuals who fail to pay employment taxes withheld from employees' wages.
Arizona Department of Revenue legal terms commonly used:
Arizona Transaction Privilege Tax (TPT) - A tax imposed on the privilege of doing business in Arizona.
Audit - An examination of a taxpayer's financial records and tax returns by the Arizona Department of Revenue to ensure compliance with tax laws.
Business Code - A four-digit code used by the Arizona Department of Revenue to classify a business for tax purposes.
Delinquent Tax Return - A tax return that is filed after the due date or not filed at all.
Estimated Tax - A payment made by self-employed individuals or those with other types of income that are not subject to withholding to cover their tax liability.
Gross Receipts - The total amount of income received by a business before expenses and deductions are taken into account.
Licensing - The process by which a business obtains the necessary permits and licenses to operate in Arizona.
Nexus - The level of business activity in Arizona that triggers an obligation to collect and remit transaction privilege tax.
Notice of Deficiency - A notice issued by the Arizona Department of Revenue that informs a taxpayer of additional taxes owed.
Penalty and Interest - Fines assessed by the Arizona Department of Revenue for failure to comply with tax laws, such as late payment or nonpayment of taxes.
Refund - The amount of money returned to a taxpayer who overpaid their taxes during the year.
Sales Tax - A tax imposed on the sale of tangible personal property in Arizona.
Use Tax - A tax imposed on the use, storage, or consumption of tangible personal property in Arizona when sales tax has not been paid.
Tax Lien - A legal claim on a taxpayer's property to secure payment of a tax debt.
Tax Return - A form filed with the Arizona Department of Revenue that reports income, deductions, and taxes owed.
Transaction Privilege Tax (TPT) License - A license issued by the Arizona Department of Revenue that allows a business to collect and remit transaction privilege tax.
Bankruptcy legal terms commonly used:
Automatic Stay - An injunction that immediately stops most collection actions against a debtor upon filing for bankruptcy.
Bankruptcy - A legal process in which an individual or business seeks relief from debts they cannot pay.
Chapter 7 Bankruptcy - A type of bankruptcy that involves liquidation of a debtor's nonexempt assets to pay creditors.
Chapter 11 Bankruptcy - A type of bankruptcy that allows businesses to restructure their debts and continue operating.
Chapter 13 Bankruptcy - A type of bankruptcy that allows individuals to reorganize their debts and create a payment plan to repay creditors over time.
Creditor - A person or entity to whom a debtor owes money. Debtor - An individual or business that owes money to creditors.
Discharge - The elimination of a debtor's liability for certain debts through bankruptcy.
Exempt Property - Property that a debtor is allowed to keep in bankruptcy, typically including basic necessities such as clothing and household goods.
Liquidation - The sale of a debtor's nonexempt assets in bankruptcy to pay creditors.
Means Test - A formula used in bankruptcy to determine whether an individual's income is low enough to qualify for Chapter 7 bankruptcy.
Non-dischargeable Debt - A debt that cannot be eliminated through bankruptcy, such as certain taxes, student loans, and child support payments.
Plan of Reorganization - A plan filed in Chapter 11 bankruptcy that outlines how a business will restructure its debts and continue operating.
Proof of Claim - A document filed by a creditor in bankruptcy to assert a right to payment from the debtor.
Reaffirmation Agreement - An agreement between a debtor and creditor in which the debtor agrees to continue paying a debt despite bankruptcy.
Secured Debt - A debt that is secured by collateral, such as a mortgage or car loan.
Trustee - A person appointed by the court to oversee a bankruptcy case, including liquidating assets and distributing payments to creditors.
Debt Relief legal terms commonly used:
Debt Relief - A process or program that helps individuals or businesses eliminate or reduce their debt.
Debt Consolidation - Combining multiple debts into a single loan or payment to simplify payments and potentially lower interest rates.
Debt Management Plan (DMP) - A repayment plan negotiated between a debtor and creditor to pay off debts over a period of time.
Debt Settlement - A process in which a debtor negotiates with creditors to settle debts for less than the full amount owed.
Creditor - A person or entity to whom a debtor owes money. Debtor - An individual or business that owes money to creditors.
Collection Agency - A third-party entity that attempts to collect debts owed to creditors.
Fair Debt Collection Practices Act (FDCPA) - A federal law that regulates the collection of consumer debts and protects consumers from abusive collection practices.
Secured Debt - A debt that is secured by collateral, such as a mortgage or car loan.
Unsecured Debt - A debt that is not secured by collateral, such as credit card debt or medical bills.
Credit Counseling - A service that provides guidance on managing debt, budgeting, and credit scores.
Bankruptcy - A legal process in which an individual or business seeks relief from debts they cannot pay.
Chapter 7 Bankruptcy - A type of bankruptcy that involves liquidation of a debtor's nonexempt assets to pay creditors.
Chapter 13 Bankruptcy - A type of bankruptcy that allows individuals to reorganize their debts and create a payment plan to repay creditors over time.
Means Test - A formula used in bankruptcy to determine whether an individual's income is low enough to qualify for Chapter 7 bankruptcy.
Estate Law legal terms commonly used:
Estate - The property, assets, and debts left by a deceased individual.
Will - A legal document that outlines how an individual's assets and property should be distributed after their death.
Probate - The legal process of validating a will and distributing the assets of a deceased person.
Trust - A legal entity created to hold assets and property for the benefit of named beneficiaries.
Trustee - A person or entity responsible for managing a trust and distributing its assets to the named beneficiaries.
Executor - The person named in a will responsible for carrying out the instructions in the will, including distribution of assets and payment of debts.
Administrator - A person appointed by the court to manage an estate in the absence of a will.
Beneficiary - A person or entity named in a will or trust to receive assets or property from the estate.
Heir - A person who is entitled to inherit property from a deceased person if there is no will.
Estate Tax - A tax on the value of an estate after someone dies.
Gift Tax - A tax on the value of a gift given by one person to another.
Power of Attorney - A legal document that gives a designated person the authority to act on behalf of someone else, typically in the event of incapacity or disability.
Living Will - A legal document that outlines an individual's preferences for medical treatment in the event of incapacity or terminal illness.
Codicil - A legal document that amends or supplements an existing will.
Intestate - A person who dies without a valid will.
Business Entity - An organization created for the purpose of conducting business, such as a corporation, partnership, or LLC.
Articles of Incorporation - A legal document filed with the state that establishes a corporation and outlines its purpose, structure, and ownership.
Bylaws - A set of rules and procedures that govern the internal operations of a corporation.
Partnership Agreement - A legal agreement between partners that outlines the terms and conditions of the partnership.
Operating Agreement - A legal agreement that outlines the management structure and ownership of an LLC.
Shareholder Agreement - A legal agreement that outlines the rights and obligations of shareholders in a corporation.
Corporate Governance - The system of rules and practices by which a corporation is directed and controlled.
Employment Agreement - A legal agreement between an employer and employee that outlines the terms and conditions of employment.
Non-Disclosure Agreement (NDA) - A legal agreement that requires one or more parties to keep certain information confidential.
Non-Compete Agreement - A legal agreement that restricts an individual's ability to compete with a former employer after leaving the company.
Trademark - A symbol, word, or phrase used to identify and distinguish a business's products or services.
Copyright - The exclusive legal right to use, reproduce, or distribute a creative work, such as a book, song, or artwork.
Intellectual Property - The legal protections afforded to creative works, including patents, trademarks, and copyrights.
Commercial Lease - A legal agreement between a landlord and a business for the rental of commercial property.
Business Litigation - Legal disputes between businesses or between businesses and individuals, typically involving contract disputes, intellectual property disputes, or employment disputes.