Tax & Accounting glossary
The tax industry is complicated. Even top tax professionals need a dictionary to get an overview of the ever-changing complex tax terminology, concepts and jargon. Our tax glossary gives you a comprehensive synopsis of current tax terms.
1031 Exchange - Named after Section 1031 of the Internal Revenue Code, a 1031 exchange (or like-kind exchange) allows a taxpayer to defer gain or loss on the transfer of real property by exchanging it for like-kind real property.
Employee Retention Credit - The Employee Retention Credit (ERC) is a program created by Congress in response to the COVID-19 pandemic and economic shutdown which incentivizes companies who retained employees on their payroll with a tax credit. The ERC ended as of September 30th 2021.
FATCA - The Foreign Account Tax Compliance Act or (FATCA), passed as part of the HIRE act in 2010, to target non-compliance by U.S. taxpayers using foreign accounts and holding other financial assets offshore in two ways: withholding requirements that are imposed on financial institutions and reporting requirements imposed on specified persons.
Fixed Assets - Fixed assets are long-term physical assets, commonly referred to as property, plant and equipment (PP&E), that a company owns and uses in its business operations to provide services and goods to customers and help drive long-term financial benefits.
Work opportunity tax credit - The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire members of certain targeted groups that have consistently experienced barriers to employment.
Paycheck Protection Program - Initially introduced in the CARES Act for COVID-19 pandemic relief, the Paycheck Protection Program (PPP) provided forgivable loans to small businesses to maintain payroll and other expenses (rent, utilities, etc.) and which are now applying for loan forgiveness.
Kiddie Tax - Kiddie tax is a special set of income tax rules that apply to individuals under 18 years old and full-time students under 24 years with income-generating assets in a custodial account.