Substantiation refers to the process of providing evidence or support for claims made in financial statements or tax filings. This involves gathering and maintaining documentation that verifies the accuracy, legitimacy, and compliance of transactions and deductions claimed by an individual or business. In accounting and taxation, proper substantiation is crucial for ensuring that expenses are...

Substitute for Return (SFR) An SFR is a tax return prepared by the Internal Revenue Service (IRS) when a taxpayer fails to file their own tax return. The IRS uses information from third parties, such as employers and banks, to estimate the taxpayer's income and calculate the tax owed. This estimate is often less favorable...

Summons Enforcement Proceedings refer to legal actions taken to compel compliance with a summons issued by a tax authority to obtain information or documents from a taxpayer or a third party. These proceedings typically arise when an individual or entity fails to respond to a summons, which can be issued by agencies such as the...

Sustainable Agriculture Tax Deductions refer to tax benefits available to farmers and agricultural businesses that implement environmentally friendly and sustainable farming practices. These deductions can reduce taxable income and encourage practices that promote soil health, water conservation, biodiversity, and reduced use of harmful chemicals. Eligible practices may include, but are not limited to, crop rotation,...

Tangible Property Regulations refer to a set of IRS guidelines established under the Internal Revenue Code (IRC) that govern how businesses account for expenditures related to tangible property—such as buildings, machinery, and equipment. These regulations clarify the distinction between capital expenditures (which must be capitalized and depreciated over time) and deductible repair and maintenance expenses...

Tariff A tariff is a governmental tax imposed on imported or exported goods and services. It serves multiple purposes including protecting domestic industries from foreign competition, generating revenue for the government, and influencing trade policy. Tariffs can be classified into two main types: Ad valorem tariff: This is a percentage of the value of the...

Tax Advisor A Tax Advisor is a professional who provides guidance and advice on tax-related matters to individuals and businesses. They assist clients in understanding tax laws, regulations, and strategies to optimize tax liabilities. Tax advisors may help with tax planning, preparation of tax returns, and representation in front of tax authorities. They often have...

Tax Automation Platforms refer to software solutions designed to streamline and automate the tax compliance process for businesses and individuals. These platforms facilitate the calculation, filing, and reporting of taxes, reducing the manual effort and potential for errors associated with traditional tax preparation methods. Tax automation platforms typically integrate with existing accounting systems to gather...

Tax Avoidance refers to the legal practice of minimizing tax liabilities through strategic planning and the use of tax laws and regulations. Tax avoidance involves utilizing deductions, credits, exemptions, and loopholes in the tax code to reduce the amount of taxable income. For example, an individual might contribute to a retirement account to lower their...

Tax Basis in Real Estate refers to the value of a property for tax purposes, which is used to determine gain or loss when the property is sold. It typically includes the purchase price plus any additional costs associated with acquiring the property, such as closing costs and real estate commissions, as well as improvements...