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Tax Terms and Glossary: U

Uncollectible – Also known as Currently Non-Collectible (CNC) IRS Status 53, which is defined as a taxpayer who does not have to make tax payments on a delinquent debt due to severe economic hardship, or personal income restrictions. The IRS will remove the taxpayer from collections, until the taxpayer ahs the ability to pay on their tax debt again.
Underpayment Penalty – IRS tax penalty for not paying enough of a taxpayers total estimated tax and withholdings.
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