THE WORKING GLOSSARY
Start with the vocabulary.
Short definitions to make the guides easier to use. These are orientation notes, not complete statements of tax or legal rules.
- Tax projection
- An estimate based on assumptions about income, deductions, credits, payments, and law. It should be refreshed when facts change.
- Estimated payment
- A tax prepayment made outside withholding. Payment requirements depend on the taxpayer and jurisdiction.
- Safe harbor
- A rule that may limit certain penalties when its conditions are satisfied. Meeting a payment safe harbor does not eliminate a final balance due.
- Cash reserve
- Funds set aside for identified obligations. A reserve is not itself a tax deduction.
- Accounting method
- The timing framework for recognizing income and deductions. Changing a method may require formal procedures.
- Implementation owner
- The person assigned to complete a planning action, with records, deadline, and confirmation of completion.