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 ?
The IRS later acquiesced in Eisenberg (see IRB 1999-4, 4); it agreed that the FMV can be reduced, for estate or gift tax purposes, by the potential capital gains tax liability.
The facts of the ruling were designed with the hope that a favorable ruling would apply to numerous similarly situated lenders and borrowers and would enable them to arrange a restructuring without fear of phantom gains tax liability.
Even though the practice of voluntarily overreporting a tax liability and submitting a correspondingly higher tax remittance to offset liabilities that were underreported in earlier filed GST returns is not technically correct under the Excise Tax Act, the practice does not amount to intentional, reckless, or wilful conduct or "indifference as to whether the Act is complied with" within the meaning of "culpable conduct" as contemplated by the legislation.
Asserting that he had no knowledge of the tax liability when he distributed the estate's assets, Little petitioned the Tax Court for relief.
Entity Structure Optimizer--evaluates merging or splitting legal entities to minimize overall tax liability
6402, files a suit against the requesting spouse for the collection of the joint tax liability, or files a claim in a court proceeding in which the requesting spouse is a party or which involves a requesting spouse's property.
TEI submits that a penalty imposed on individual employees for an improper reduction in the corporate tax liability simply misses the mark.
His only asset is his retirement account, and the funds in the account are sufficient to pay his tax liability.
Completely web-based and scalable to support complex corporate tax structures, the software provides a comprehensive view of state income tax information across multiple years, making it possible to effectively manage tax liability and the ongoing tax implications of changes in the business and regulatory environments.
Further, the willing buyer-willing seller test mandated discounting the IRAs for (1) the income tax liability associated with their distributions and (2) their lack of marketability.
In other words, the nonresident may end up with a greater tax liability than a resident because an alimony deduction is denied.
As a result of its re-listing on the New York Stock Exchange on January 13, 2005, the company does not expect any changes to its deferred or current tax liability to be required as a result of the new Barbados protocol.