Tax Acronym Decoder
136+ Terms for Tax Professionals

AGI equals gross income from all sources (wages, interest, dividends, business income, capital gains, retirement distributions, etc.) reduced by the "adjustments to income" listed on Schedule 1 Part II — items such as the deductible portion of self-employment tax, HSA contributions, student loan interest, educator expenses, and self-employed retirement contributions. AGI is computed before the standard or itemized deduction.

MAGI is AGI plus a handful of add-backs that vary by Code section: foreign earned income exclusion, tax-exempt interest, excluded Social Security, student loan interest deduction, etc. There is no single MAGI; the Premium Tax Credit, Roth IRA contribution limit, NIIT, IRA deduction phaseout, and education credits each use slightly different formulas.

AMT starts with taxable income, adds back preference items (private activity bond interest, certain depreciation, ISO bargain element, etc.), allows the AMT exemption, and applies the 26% / 28% rate schedule. The taxpayer owes AMT only to the extent it exceeds regular tax. Post-TCJA the exemption and phaseout thresholds are much higher, so far fewer middle-income filers are hit.

AMTI is taxable income recomputed with AMT-specific rules: ISO bargain element added in, depreciation recomputed on the AMT method, no deduction for state and local taxes, and preference items added back.

NIIT applies to the lesser of (a) net investment income or (b) MAGI over the threshold ($200K single / $250K MFJ / $125K MFS, not indexed). Net investment income includes interest, dividends, capital gains, rental and royalty income, non-qualified annuities, and income from passive businesses, minus properly allocable deductions.

SE tax is 15.3% (12.4% Social Security up to the wage base + 2.9% Medicare on all earnings) computed on 92.35% of net SE earnings. Above the Social Security wage base only the 2.9% Medicare portion continues. The Additional Medicare Tax of 0.9% kicks in above the threshold. Half of SE tax is deductible as an adjustment to income.

FICA imposes 6.2% Social Security on wages up to the annual wage base and 1.45% Medicare on all wages, each matched by the employer. An Additional Medicare Tax of 0.9% applies to employee wages above the threshold and is not matched.

After the state UI credit (max 5.4%), the effective FUTA rate is typically 0.6%. Credit reduction states pay a higher effective rate when their state has outstanding federal UI loans.

Each state administers its own UI fund with its own taxable wage base (from ~$7K to $60K+) and experience-rated rates. New employers usually get a flat introductory rate for the first 2-3 years.

OASDI tax stops once an employee's YTD wages with a single employer hit the wage base. Multi-employer over-withholding is recoverable via the Schedule 3 excess SS tax credit.

AOTC is 100% of the first $2,000 of qualified education expenses plus 25% of the next $2,000 = $2,500 max. 40% ($1,000) is refundable. The student must be in the first four years of post-secondary education, pursuing a degree, enrolled at least half-time, and not have a felony drug conviction. MAGI phaseouts apply.

LLC is 20% of up to $10,000 in qualified expenses = $2,000 max per return. No degree, half-time, or four-year limits — perfect for graduate students, professional certificates, and continuing education. MAGI phaseouts apply.

EITC has separate schedules for 0, 1, 2, and 3+ qualifying children, with phase-in, plateau, and phase-out ranges. Investment income above an annual cap disqualifies the taxpayer. Married filing separately is generally ineligible (limited exception under TCJA-era rules).

Under current law, CTC is $2,000 per qualifying child with a refundable portion (ACTC) computed as 15% of earned income above a threshold, capped at a per-child amount that is inflation-adjusted. MAGI phaseouts begin at higher income levels.

ACTC is computed as 15% of earned income above the statutory threshold, capped at a per-child refundable amount. It is reported on Schedule 8812.

ODC covers dependents who are US citizens, nationals, or resident aliens but fail one or more CTC tests (typically age or SSN). The credit is nonrefundable.

CDCC is 20%-35% of qualifying expenses up to $3,000 for one qualifying individual or $6,000 for two or more, with the percentage phasing down by AGI. The child must be under 13 (or a disabled spouse/dependent).

PTC is computed using household MAGI, family size, and the Second Lowest Cost Silver Plan (SLCSP) in the taxpayer's area. APTC paid in advance to the insurer is reconciled at year-end on Form 8962; excess advance credit must generally be repaid.

When a taxpayer enrolls through the Marketplace, the Exchange estimates the PTC based on projected income and pays it to the insurer monthly. The 1095-A reports APTC paid, which is reconciled with actual PTC on Form 8962.

SLCSP is reported in column B of Form 1095-A for each month. If column B is missing or zero, look up the correct value on the Marketplace SLCSP tool — leaving it blank understates PTC.

WOTC is generally 25% or 40% of qualified first-year wages up to a category-specific cap. The employer must obtain certification from the state workforce agency using Form 8850 within 28 days of the hire date.

ERC is claimed on amended Forms 941-X. The IRS has placed a moratorium on new claims and announced extensive audits and a withdrawal program for taxpayers misled by aggressive promoters. Eligible employers had either a full/partial suspension of operations or a qualifying gross receipts decline.

Saver's Credit is computed on contributions up to $2,000 ($4,000 MFJ), with the percentage tiered by AGI. Distributions in the testing period reduce eligible contributions.

Qualified expenses include adoption fees, court costs, attorney fees, and travel. For special needs adoptions finalized in the US, the full credit amount is allowed regardless of actual expenses.

QBI is the net ordinary income from a domestic pass-through trade or business (sole proprietorship, partnership, S corp, certain trusts). It excludes capital gains, dividends, interest not allocable to the business, reasonable comp paid to S corp owners, and guaranteed payments. The deduction is generally 20% of QBI, subject to taxable income thresholds, W-2 wage/UBIA limits, and SSTB phaseouts.

SSTBs include health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, investment management, trading, dealing in securities, and any business whose principal asset is the reputation or skill of one or more employees. Architecture and engineering are explicitly excluded from SSTB.

UBIA of qualified property is the cost basis at acquisition, before depreciation, of tangible property still within its depreciable period (the later of 10 years or its MACRS recovery period). Above the QBI threshold, the deduction is limited to the greater of (a) 50% of W-2 wages or (b) 25% of wages + 2.5% of UBIA.

PTEs file informational returns (Form 1065, 1120-S, 1041) and issue K-1s to owners. Income is taxed at the owner level rather than the entity level.

In a PTET-electing state, the partnership or S corp pays state tax at the entity level (deductible as a business expense federally), then provides owners with a credit or income subtraction on their state return. Mechanics vary widely by state — some are mandatory, some elective; some refundable, some not.

Under TCJA, the combined deduction for state and local income (or sales) tax plus property tax is capped at $10,000 per return ($5,000 MFS). The cap drove the PTET workaround in most states.

DRD is 50% for ownership under 20%, 65% for 20%-80%, and 100% for 80%+ (affiliated group). The DRD does not apply to most foreign-source dividends after TCJA introduced the participation exemption under §245A.

COGS reduces gross receipts to arrive at gross profit. For taxpayers required to use inventory, COGS includes direct materials, direct labor, and applicable indirect costs under §263A (UNICAP).

§263A applies to producers and to resellers with average gross receipts above the small business threshold (inflation-adjusted, around $30M+). Indirect costs (rent, utilities, certain admin) must be allocated to inventory.

GILTI is the CFC's net tested income minus a 10% return on QBAI (qualified business asset investment). C corps get a §250 deduction and may use a foreign tax credit; individual US shareholders generally pay the full rate unless they make a §962 election.

FDII is the C corp counterpart to GILTI — instead of taxing offshore income, it rewards onshore income earned from foreign customers. The §250 deduction provides a reduced effective rate.

BEAT applies to corporations with average gross receipts over $500M that have a "base erosion percentage" above the threshold. It recomputes tax without certain deductions to a foreign related party and imposes the higher number.

A single-member LLC is a disregarded entity by default (filed on Schedule C / E / F or as a branch). A multi-member LLC defaults to partnership taxation. Either can elect S or C corp treatment on Form 8832 / 2553. The choice has SE tax, basis, and distribution consequences.

LLP rules and liability shields vary by state. Federally, the LLP is generally taxed as a partnership unless it elects otherwise.

GPs are subject to SE tax on their distributive share; LPs are generally not (with some exceptions). Used heavily in real estate and private equity fund structures.

QSST requires the beneficiary to make a written election. The beneficiary is treated as the owner of the S corp stock for income tax purposes — S corp income flows directly to the beneficiary.

ESBT files Form 1041 with the S corp portion computed separately at the highest individual rate (with limited deductions and no exemption). Non-S portion is taxed under normal trust rules.

Single-member LLCs default to disregarded status. A DRE is still a separate entity for state law, employment tax, and excise tax purposes — only income tax is collapsed onto the owner.

A QSub election (Form 8869) collapses the subsidiary into the parent S corp for federal income tax. Useful for legal segregation of liabilities without a separate tax return.

REITs must satisfy asset, income, and distribution tests. Shareholder dividends are generally taxed as ordinary income (with §199A treatment for the qualified REIT dividend portion), not at qualified dividend rates.

Traditional IRA contributions may be deductible depending on coverage by a workplace plan and MAGI; distributions are taxed as ordinary income. Roth IRA contributions are never deductible; qualified distributions are tax-free. Contribution limits, age 50 catch-up, and Roth MAGI phaseouts are inflation-adjusted annually.

SEP contributions are made only by the employer and must be uniform percentage of compensation across all eligible employees. For self-employed taxpayers, the effective rate on net SE earnings is about 20% after the SE tax adjustment.

Employer must either match dollar-for-dollar up to 3% of compensation or contribute 2% non-elective for all eligible employees. Contribution limits are lower than 401(k). Plan is easier and cheaper to administer than a 401(k).

Traditional deferrals are pre-tax; Roth 401(k) deferrals are after-tax. The combined annual limit (§415(c)) covers employee deferrals, employer match, and non-elective contributions. Plans must pass ADP/ACP nondiscrimination tests unless a safe harbor is elected.

403(b) plans allow elective deferrals up to the §402(g) limit, plus a special 15-year service catch-up for certain long-term employees, in addition to the age-50 catch-up.

Government 457(b) deferral limits stack on top of 403(b) and 401(k) limits — a public employee can effectively double their tax-deferred contribution capacity. No 10% early withdrawal penalty on separation from service.

Under SECURE 2.0, the RMD age moved to 73 (rising to 75 in 2033). RMD is computed by dividing the prior-year-end balance by a life-expectancy factor from the IRS tables. Roth IRAs (owner) have no RMD; designated Roth 401(k) RMDs were eliminated for years after 2023.

QCDs are available to IRA owners age 70½+, up to an inflation-adjusted annual limit per individual. The distribution must go directly from the IRA custodian to the charity. QCD amounts excluded from income do not also generate a charitable deduction.

On a lump-sum distribution from an employer plan, the cost basis of employer stock is ordinary income at distribution; the appreciation (NUA) is taxed at LTCG only when the shares are later sold. Strict lump-sum distribution requirements apply.

ESOPs allow owners to sell to employees on a tax-favored basis (§1042 rollover), and S corp ESOPs effectively shield the ESOP's share of income from federal tax.

HCEs and NHCEs are tested separately under ADP/ACP and other nondiscrimination tests. Top-paid group election can narrow the HCE definition to the top 20% by compensation.

ADP tests employee deferrals; ACP tests employer matching and after-tax contributions. Failure requires corrective distributions to HCEs or QNECs to NHCEs.

HSA contributions are above-the-line deductible (or pre-tax via cafeteria plan). Growth is tax-free. Qualified medical distributions are tax-free at any age. Non-qualified distributions before 65 are taxable plus a 20% additional tax. After 65, non-qualified distributions are taxable but no additional tax (like a traditional IRA).

Annual minimum deductible and maximum out-of-pocket limits are inflation-adjusted. Coverage by any non-HDHP (including a general purpose FSA, even a spouse's) disqualifies HSA contributions for the affected months.

Healthcare FSAs are use-it-or-lose-it (with limited carryover or grace period options). Contribution limit is indexed annually. Funds are available in full at the start of the plan year, even before fully funded.

DCFSA limit is $5,000 per household ($2,500 MFS). Coordinate with the Child and Dependent Care Credit — DCFSA contributions reduce eligible CDCC expenses dollar-for-dollar.

HRAs come in several flavors: integrated HRA, QSEHRA (small employer), ICHRA (individual coverage HRA). Each has its own coverage and reporting rules.

ACA created the Forms 1095-A/B/C reporting regime, the Premium Tax Credit, and the employer shared responsibility (§4980H) for applicable large employers. The individual mandate penalty has been zeroed federally but several states have their own.

MEC is reported on Forms 1095-B (insurer) and 1095-C (large employer self-insured). Excluded are "excepted benefits" like dental, vision, fixed indemnity, and short-term limited duration plans.

FTE calculation combines full-time employees (30+ hours/week) with FTE conversions of part-time hours. Controlled and affiliated service groups are aggregated.

DSUE portability is elected on a timely-filed Form 706, even when no estate tax is otherwise due. The surviving spouse may use the DSUE for lifetime gifts or at death.

GST applies to direct skips, taxable terminations, and taxable distributions. Each transferor has a GST exemption (matching the estate tax exemption) that can be allocated to shelter transfers.

GSTT is imposed at the highest estate tax rate. The inclusion ratio determines what portion of a transfer is subject to GSTT; proper GST exemption allocation produces a zero inclusion ratio.

The grantor retains the right to use the residence for a fixed term, after which it passes to beneficiaries. The retained use reduces the value of the gift. If the grantor dies during the term, the residence is brought back into the estate.

A "zeroed-out" GRAT is designed so the annuity equals the gift value, making the taxable gift near zero. If the assets outperform the §7520 rate, the excess passes free of gift tax. Grantor death during the term brings the trust back into the estate.

SLAT removes assets from the grantor's estate while preserving family access through the beneficiary spouse. Two-SLAT structures must avoid the reciprocal trust doctrine.

Premiums are typically funded through gifts subject to Crummey notices to qualify for the annual exclusion. The trustee owns and is beneficiary of the policy.

CRTs come in two main flavors: CRAT (fixed annuity) and CRUT (unitrust percentage of annual value). Contribution generates a partial charitable deduction equal to the present value of the remainder interest. The trust itself is tax-exempt until distributions to the income beneficiary, which carry out tier-system character.

CRUT distributions vary year to year with trust value. NIMCRUT and Flip-CRUT variations allow distributions to be limited to actual trust income, with makeup of unpaid amounts in later years.

DNI is computed by adjusting trust taxable income for items like the distribution deduction itself, tax-exempt interest, and capital gains (usually allocated to corpus). Distributions up to DNI carry out income to beneficiaries on K-1; amounts above DNI are tax-free distributions of corpus.

FBAR is filed electronically with FinCEN (not the IRS), on FinCEN Form 114, due April 15 with an automatic October 15 extension. Penalties for willful non-filing can equal the greater of $100K (inflation-adjusted) or 50% of the account balance per violation.

FATCA individual reporting (Form 8938) has higher thresholds than FBAR but covers a broader class of "specified foreign financial assets" — including foreign stock, partnership interests, and certain insurance contracts.

FEIE is elected on Form 2555 and applies only to earned income, not investment income. The housing exclusion/deduction supplements FEIE for high-cost foreign locations.

FTC is computed on Form 1116, with separate "baskets" for different income categories (passive, general, GILTI, branch, etc.). Unused FTC carries back one year and forward ten.

ITINs are issued via Form W-7. Many ITINs require renewal after years of inactivity. ITIN-holders do not qualify for CTC but may qualify for ODC.

US shareholders of CFCs must include their pro-rata share of Subpart F income and GILTI on their personal returns and file Form 5471 annually. Various categories of filer determine the scope of disclosure required.

PFIC default rules tax distributions and gains at the highest ordinary rate with interest charges spread over the holding period. A QEF election or mark-to-market election generally produces better outcomes — but requires annual reporting on Form 8621.

Subpart F covers foreign personal holding company income (interest, dividends, royalties, rents, gains), foreign base company sales income, and foreign base company services income. High-tax exception and same-country exceptions can reduce the inclusion.

TFRP can be asserted against any person who was responsible for collecting, accounting for, or paying over the trust fund portion (employee FICA + income tax withholding) and who willfully failed to do so. The penalty equals 100% of the unpaid trust fund tax.

A CDP hearing before Appeals can dispute the underlying liability (if no prior opportunity), propose collection alternatives (IA, OIC, CNC), or challenge the appropriateness of the collection action. A timely CDP request preserves the right to Tax Court review.

Doubt-as-to-collectibility OIC is computed using reasonable collection potential: net realizable equity in assets plus future income (12 or 24 months depending on payment terms). Form 656 is the submission; Form 433-A (OIC) or 433-B (OIC) provides the financial detail.

Streamlined IA is available up to $50,000 (individuals) with up to 72 months to pay, no financials required. Above streamlined limits, Form 433-F or 433-A may be required. The Online Payment Agreement system handles most routine cases.

PPIA requires full financial disclosure and periodic (typically two-year) reassessment. It's appropriate when an OIC isn't viable but the taxpayer cannot pay in full before CSED.

CNC requires full financial disclosure. The CSED continues to run during CNC. Periodic reviews can return the account to active collection if circumstances change.

SFRs file at single or MFS, take no itemized deductions, and treat all reported income as ordinary. Filing a true original return after the SFR generally reduces the liability dramatically. SFR liability cannot be discharged in bankruptcy under most circuit decisions.

ASED is extended to six years for substantial omission (25%+) and is unlimited for fraud or unfiled returns. Form 872 voluntarily extends ASED; the IRS may require this in ongoing exams.

CSED is tolled by pending OIC, pending CDP, bankruptcy stays, and other events. Computing the true CSED requires reviewing IRS account transcripts carefully for tolling triggers.

RSED is critical for amended returns. A claim filed after RSED is barred even if substantively correct.

TAS accepts Form 911 referrals for taxpayers experiencing financial hardship, IRS system failures, or significant delays. Each state has a Local Taxpayer Advocate.

LITCs handle audits, appeals, collection matters, and Tax Court cases. Eligibility is income-based (typically 250% of federal poverty line).

Form 2848 specifies tax matters, years, and acts authorized. CAF-stored POAs allow transcript access. Form 2848 is separate from Form 8821 (TIA) which permits information access but not representation.

Form 8821 is appointee-friendly — it doesn't require the designee to be a CPA/EA/attorney. Useful for transcript monitoring without committing to representation.

Every preparer who files Form 2848 or 8821 receives a CAF number. CAF authorizations remain on file until withdrawn or replaced.

PTIN must be renewed annually with a user fee. Required on every signed return; failure to use a PTIN is a §6695 violation.

EFIN is assigned to the firm after passing suitability checks. Different from PTIN (preparer-level). Annual monitoring through e-Services is recommended to detect unauthorized use.

EIN is requested on Form SS-4. Online application is available for entities with a US-based responsible party SSN/ITIN. Foreign responsible parties must fax or mail SS-4.

SSN is required for CTC eligibility (issued before the return due date), most retirement plan participation, and standard W-2 reporting.

Used in regulations and instructions when the requirement is satisfied by any of the underlying ID types.

ATIN is requested on Form W-7A. It allows the adopting family to claim the child as a dependent before the SSN is issued. ATIN-claimed children do not qualify for EITC or CTC.

EAs are licensed by the Treasury Department after passing the Special Enrollment Examination (three parts: Individuals, Businesses, Representation) or qualifying through IRS service. CE requirement is 72 hours per 3-year cycle, with at least 16 hours per year.

CPA licensure is state-administered after passing the Uniform CPA Examination and meeting education and experience requirements. State CPE requirements vary.

AFSP participants receive a Record of Completion and are listed in the IRS Directory of Federal Tax Return Preparers. Representation is limited to returns the preparer prepared and signed.

TCJA (P.L. 115-97) made permanent changes on the corporate side (21% rate, GILTI/FDII/BEAT) and largely temporary changes for individuals scheduled to sunset after 2025 absent further legislation. OBBBA (2025) addressed the individual sunset.

SECURE 1.0 raised the RMD age to 72 and replaced the stretch IRA with a 10-year rule for most non-spouse beneficiaries. SECURE 2.0 raised RMD age to 73 (later 75), reduced RMD penalties, allowed Roth matching contributions, expanded auto-enrollment, and created a long list of smaller provisions phasing in 2023-2027.

CARES introduced many temporary individual and business provisions: 2020 RMD waiver, expanded NOL carrybacks, QIP technical correction, suspension of §163(j) limitation, and the first round of stimulus payments.

ARPA temporarily expanded the CTC to $3,000/$3,600 with full refundability and advance payments in 2021. It also temporarily expanded EITC for childless workers and CDCC.

OBBBA, enacted as Public Law 119-21 on July 4, 2025, permanently extended the TCJA individual income tax brackets and rates and increased the standard deduction (to $15,750 single / $31,500 joint, indexed) that were otherwise scheduled to sunset after 2025. It raised the SALT cap from $10,000 to $40,000 for taxpayers under $500,000 of income for 2025–2029, after which the cap reverts to $10,000. It created new temporary above-the-line deductions for qualified tip income, overtime compensation, and senior taxpayers (each with its own phase-out and sunset after 2028). It made §199A QBI permanent with expanded phase-in ranges and a $400 minimum deduction effective 2026, increased the §1202 QSBS gain exclusion to $15 million, set estate/gift/GST exemptions permanently at $15 million per individual beginning 2026, made the Qualified Opportunity Zone program permanent (with a new Rural QOZ category), and phased out most Inflation Reduction Act clean-energy credits.

The IRC is the primary source of federal tax authority. Citations follow the format §[number] or 26 U.S.C. §[number].

Treasury Regulations are the primary administrative interpretation of the IRC and carry strong precedential weight. Citations follow the format Treas. Reg. §1.[Code section]-[number].

MACRS has two sub-systems: GDS (General Depreciation System, accelerated) and ADS (Alternative Depreciation System, generally straight-line). Most assets default to GDS unless the taxpayer elects ADS or a provision requires it.

ADS has longer recovery periods than GDS (e.g., 30-year residential real estate vs. 27.5; 40-year non-residential vs. 39). Required for ADS-mandated assets and electable on a class-by-class basis.

GDS lives include 5-year (vehicles, computers), 7-year (office furniture), 15-year (qualified improvement property, land improvements), 27.5-year (residential rental), and 39-year (nonresidential real).

§179 limit and phaseout threshold are indexed annually. SUVs over 6,000 lbs GVW have a separate sub-limit. Unlike bonus depreciation, §179 is limited by aggregate trade-or-business income — disallowed amounts carry forward.

QIP excludes enlargements, elevators/escalators, and internal structural framework. Post-CARES technical correction, QIP is 15-year property and therefore bonus-eligible.

Bonus is 100% for property placed in service in 2017-2022 (and certain longer-production-period extensions), phasing down to 80% (2023), 60% (2024), 40% (2025), 20% (2026), 0% thereafter — absent legislative change. OBBBA modified parts of this schedule for certain categories; verify the year.

Post-TCJA, §1031 applies only to real property. Strict timing rules: 45 days to identify replacement property and 180 days to close. A qualified intermediary must hold the proceeds to avoid constructive receipt.

Original capital gains must be invested in a QOF within 180 days. Gains deferred until the earlier of disposition or 12/31/2026. Holding the QOF investment for 10+ years eliminates tax on the QOF's own appreciation.

QOZ designations were made by state governors and certified by Treasury. The list is fixed; a QOF must invest substantially in QOZ business property or QOZ businesses.

A DST interest is treated as direct ownership of real property for §1031 purposes (Rev. Rul. 2004-86), making it useful as replacement property in tight 45-day identification windows.

MeF accepts returns through ERO-authorized software, processes acknowledgments in near real time, and supports embedded PDF attachments. State returns can be filed jointly with the federal "Fed/State" mechanism.

EFW is set up in the e-filed return data (Form 8879 authorization). Cancellation requires calling the e-file Payment Services line at least two business days before the scheduled date.

EFTPS supports estimated tax, payroll tax deposits, excise tax, and 1040 balances. Enrollment requires a separately mailed PIN; allow about a week.

Box 1 wages may differ from boxes 3 and 5 due to pre-tax retirement, HSA, or other adjustments. Box 12 codes carry critical information (W = HSA, DD = employer-sponsored coverage, D = 401(k), etc.).

The 2020+ W-4 redesigned the form to remove "allowances," replacing them with dollar-based adjustments for credits, other income, and deductions. The IRS Tax Withholding Estimator helps employees fine-tune.

W-9 is retained by the payer (not filed with the IRS) and supports 1099 issuance. Missing or incorrect W-9 information triggers backup withholding at 24%.

Each 1099 variant has its own reporting thresholds and deadlines. 1099-NEC is due to recipients and the IRS by January 31. Other 1099s typically follow a February (recipient) / March (IRS paper) / March 31 (IRS electronic) schedule.

Form 941 is filed by the last day of the month after each quarter. Schedule B accompanies returns from semi-weekly depositors. Form 944 is an annual alternative for very small employers (under $1,000 annual liability).

Form 940 is due January 31. Quarterly deposits are required whenever the cumulative FUTA liability exceeds $500. Credit-reduction states require a Schedule A.

Form 8867 must be completed and retained, along with supporting documentation, for three years. Penalty for non-compliance under §6695(g) is $635 (indexed) per failure per return.

Form 8879 must be signed before transmission. Electronic signature methods (KBA, esign) are permitted for individual returns; business e-signature has expanded post-COVID. Retention is three years.

Each lot is reported separately unless the taxpayer qualifies for the summary reporting exception (covered transactions without basis adjustments can be summarized on Schedule D directly).

DCN is generated by the preparer software and used in IRS acknowledgments. The submission ID has largely replaced the DCN in MeF.