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Mathematical or clerical error

A mistake on a tax return that involves a simple calculation error, an omission of information, incorrect identification numbers, or a claim for a deduction or credit exceeding a statutory limit.

Internal Revenue Code of 1986

The official body of law that outlines federal tax laws in the United States.

Abatement

The cancellation, reversal, or reduction by the IRS of an assessed tax or penalty, often requested by a taxpayer who believes the assessment is incorrect.

Adjusted Gross Income (AGI)

Your gross income minus certain deductions. It's a key number that determines eligibility for many tax credits and deductions.

Nonrefundable credits

Tax credits that can reduce your tax liability to zero, but you won't get any money back as a refund if the credit amount is more than your tax owed.

Refundable credits

Tax credits that can reduce your tax liability to below zero, meaning you can get money back as a refund even if you don't owe any tax.

Net operating loss carryforwards

When a business's deductions exceed its income, creating a loss that can be used to reduce taxable income in future years.