Glossary

The underground economy refers to money-making activities that people do not report to the government, even though they generate income. These activities can include illegal actions as well as legal …

A transmitter is the system or service that sends electronic tax return data directly to the IRS. It acts as the secure digital bridge between your completed tax return and …

Transmit means sending your tax return to the IRS electronically using approved filing systems. Instead of mailing paper forms, you submit your return online so it reaches the IRS quickly, …

Transaction taxes are taxes charged when an economic transaction takes place, such as buying goods or paying for services. These taxes are applied at the point of sale and are …

Tip income is the money or goods you receive voluntarily from customers as a reward for services you provide, beyond the stated cost of the service. It’s common for workers …

A telephone tax refund allows taxpayers to recover federal excise taxes they previously paid on long-distance telephone services. These refunds apply to excise taxes billed on long-distance calls made after …

A tax shift happens when a tax that is legally imposed on one person or group is ultimately paid by someone else. Even though the government may assign a tax …

Tax preparation software helps individuals and businesses prepare and file their tax returns using a computer or mobile device. It guides users through the tax process, calculates taxes automatically, and …

Tax liability means the total amount of tax you are legally required to pay to the government for a specific period, usually a year. It’s essentially your full tax bill …