Tax Terms Glossary | Gain Power With Knowledge

Offers in Compromise: An agreement between the IRS and a taxpayer where less than the full amount of tax liability is accepted by the IRS in satisfaction of the full amount due.
Opening Transaction: Where a taxpayer writes or buys an option making an original trade as they do not currently hold the opposite position in their account.
Operate: To manage a business so that it is a going concern.
Option: An option is a legal contract where a person agrees to sell, or purchase from the holder, specific property at a predetermined price and time if the holder so chooses to exercise the option.
Option Premium: The amount the buyer pays, and the seller receives, for an option.
Option Writer: A person who sells an option without owning that option.
Organization: A group of persons that come together for a purpose.
Original Issue Discount: A discount from face value at the time the financial instrument is issued.
Overpayment: An amount paid to a taxing authority in excess of what was due.
Owner: A person who has ownership.
Owner's Equity: The difference between total assets and total liabilities.
Ownership: Having exclusive rights or control over property.