Tax Liability

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Tax liability

The amount in taxes a taxpayer to the government.

Tax Liability

The money one owes to the government in a given year. At its most basic, a tax liability is usually a certain percentage of one's income, and varies according to income. That is, one who makes $100,000 per year usually has a higher tax liability than one who makes $25,000. Different taxable events command different tax liabilities. For example, income taxes are usually higher than capital gains taxes. Certain taxable events do not occur for everyone in every year; for example, inheritance taxes only apply when someone dies. See also: Tax bracket.

Tax Liability

The amount of total tax due the IRS after any credits and before taking into account any advance payments (withholding, estimated payments, etc.) made by the taxpayer.
References in periodicals archive ?
He added tax liabilities from 2002 to 2017 had been included in the new policy and taxpayers should clear their liabilities in the coming nine months and should pay five percent fine as well.
Dissipated assets are not limited to those lost through negligence or disregard of one's tax liabilities, however.
In the case of intangible assets with indefinite lives, although in concept the deferred tax liabilities are a temporary difference, the underlying asset could remain on the balance sheet of the company indefinitely.
The real challenge to the consistent determination and reporting of tax liabilities in financial statements, he concluded, lies in the application of complex and nebulous tax rules to myriad facts and circumstances.
6402(a) authorizes the Service to credit an overpayment against unassessed tax liabilities that are identified in a proof of claim filed in a bankruptcy case.
The proposed Interpretation, which would substantially modify FAS 109, (1) provides a theoretical approach for the consistent determination and reporting of income tax liabilities, assets, and expense relating to uncertain tax positions.
b) deferred tax liabilities and assets for future tax consequences of events that have been recognized in an enterprise's financial statements or tax returns.
Fund managers also determine what types of stocks to purchase-high dividend-paying stocks to which create additional tax liabilities for fund holders, or low-dividend-paying stocks.
Instead, foreclosures, deeds in lieu of foreclosure, bankruptcies and other restructuring have produced sizable gains tax liabilities. The problem is that gains tax is measured by the difference between the sales price, including liabilities, and the undepreciated purchase price of the real estate.
Although ISOs were intended to provide a tax benefit to employees, when the post-exercise price declines, optionees can find themselves subject to huge AMT tax liabilities attributable to sometimes worthless stock.
Its resolution will directly affect the tax liabilities of other businesses subject to California's tax system, and could indirectly affect the tax systems of other states.
The taxpayer appealed the decision; the Second Circuit held that she was entitled to reduce stock value for potential capital gains tax liabilities, even though no liquidation, or asset sale or distribution, was contemplated by the corporation when the stock was gifted.