Glossaries and Terms
Education & Support for Professionals
Marketing
This is the act of using a media outlet such as television broadcasting, magazines, or the internet to market a product or service to prospective buyers/users.
A person or company that represents a party relating to a marketing or advertising endeavor.
The systematic analysis of data or statistics.
The study of how society behaves both outwardly and privately.
A way to gauge a person’s perspective based upon their behavior.
The act of exchanging goods or services in lieu of cash payments.
An intangible, this is what a company creates from several items to tie in with how they want to be perceived. Several items including logos, slogans and jingles contribute to a company’s overall brand.
A person or company that is called upon to facilitate a business transaction.
An amount of money or time calculated to determine what time or money a person or company plans on spending on a given endeavor.
This is the person seeking the product or service being offered. We prefer this term over “customer” when selling services as it comes across more professionally. It is important to understand that the person contacting you to purchase may not be the true prospective client.
A company, person, good, or service that participates directly within another company’s or person’s line of business.
A roadmap created to overcome a competitor’s strengths in the marketplace.
The behavior that describes the behavior of a region, country, race, company other group of people.
A structured set of data points held in a computer.
A brief sales speech that is persuasive and outlines an idea.
A coordinated set of email messages that are sent across a period of time with a specific purpose.
To carry out or put into effect a certain course of action.
The act of marketing on a broad scope. This may include worldwide market, countrywide marketing or other metrics such as all consumer marketing.
Unconventional, low cost marketing methods aimed at obtaining exposure for a company.
A term used to describe a person’s or group of people’s beliefs.
A term used to describe an increase in price due to an imbalance in demand over supply.
A business dealing where two or more people, business or other entities participate in control and ownership of a business.
A person or business who eventually may become a client.
Correspondence issued by a bank stating that a person or business has been granted credit to purchase goods or services.
A person or entity grants another person or entity to use a tangible or intangible item conditioned by the terms of the license.
The manner in which a person or business enters into a new arena of business.
The act of planning, executing, and measuring the efforts of a person or business to gain notoriety to access prospective clients or increase brand awareness.
To estimate or assess the extent, value, quality, or effect of something.
A means by which to broadcast content to the public including television, radio, and print.
Written copy used to communicate an idea, description or other content to a recipient or recipients.
Make partial or minor changes to meet requirements.
A highly effective means to garner new business by meeting with associates in order to refer business back and forth. These types of meetings are most effective when done face-to-face in a live setting.
A bulletin sent out periodically to members of a society, business, or group.
An internet business model used to drive traffic to websites. The advertiser pays the publisher when their ad is clicked.
Setting the price of a good or service at lower than market conditions to gain a new client, increase sales volume, etc.
A particular position or portion of space.
The highest price that can be set based upon what market conditions will allow.
The lowest price that can be charged based upon associated costs to bring a product or service to market.
Using research to make marketing decisions relating to marketing a product.
A product may be tangible or intangible and usually refers to what product or service the provider is offering.
An incentive offered by a person or company to another person or company made with the intent of providing an item or service at a reduced cost or no cost to gain something from the recipient.
A person or company that a provider deems may be interested in purchasing the provider’s product or service.
Professional maintenance of a favorable public image by a company or organization.
A baseline created to measure one’s productivity or effectiveness.
A prospective client referred by an outside (usually trusted) source.
A company selling products to consumers. A retailer can be a physical store or be a company with an online store.
A ratio between net profit and cost of investment. Used to evaluate the efficiency of an investment.
The seeking of information to gain knowledge.
The process of increasing the quality and quantity of website traffic by increasing visibility of a web page to users of a web search engine.
Marketing products or services at certain particular times of year.
Published accessible data from a variety of sources.
Websites and applications that enable users to create and share content or participate in social networking.
Seeking outside parties to provide a component relating to a service or good being sold.
A study to identify an organization’s strengths, weaknesses, opportunities, and threats.
A pattern or mold used as a guide to form a piece being made.
A formal statement testifying a person or company’s character and qualifications.
An exhibition at which businesses in an industry come and promote what they have to offer.
A person or company selling a service or product at a price below market with the intention of having the purchaser resell the service or product.
Sales
A synonym for client, this term is usually used in a business-to-business (“B2B”) context.
This term is used to indicate that the salesperson is hyper-aware to not only what the prospective client is saying, but how they are saying it. This is often combined with interpreting body language in order to better evaluate a prospective client.
This is accomplished by providing additional benefits (either tangible or intangible) to the primary product or service being sold. A “top notch” reputation is an example of an added value.
This is something (either tangible or intangible) that gives one an edge over their competition. Being referred by an associate is often an advantage over having someone call you out of the blue.
This is the act of using a media outlet such as television broadcasting, magazines, or the internet to market a product or service to prospective buyers/users.
An arrangement to meet someone at a particular time and place.
Similar to “features” (see below) this term is used to describe the positive aspects of a product or service. Selling benefits is not recommended.
This term is used to describe transactions between one company and another company.
This term is used to describe transactions between a company and a consumer.
This is the part of the sales process in which the salesperson receives a commitment from the prospective client. This is often mistaken as the final step in the selling process.
This is the person seeking the product or service being offered. We prefer this term over “customer” when selling services as it comes across more professionally. It is important to understand that the person contacting you to purchase may not be the true prospective client (see “Decision-maker”).
An unsolicited call made by someone attempting to sell a good or service.
The amount of money a sales professional earns for reaching a specific sales number or for performing a certain number of business transactions.
A meeting with an expert or professional in order to seek advice.
This is a person who has been given the authority to enlist your services. Be sure you are speaking with a decision-maker when taking a sales call or meeting.
The item or items one commits to provide. These may be tangible or intangible.
This is used to describe the make-up of one’s living style. Among other things, this may include a person’s job, hobbies, consumables, economic standing, and education. It is helpful to know the demographic of your prospective clients.
Marketing a product or service via the internet.
Using “snail mail” to market a product or service to a target audience.
Having the ability to understand and share what another person is feeling. This is a valuable sales tool when trying to discover a prospective client’s pain.
This is the practice of acting within societal guidelines. Acting ethically over time will yield much better results than any short-term gain that may be accomplished by acting otherwise.
Similar to “benefits” (see above) a feature is an aspect of a product or service that distinguishes it from other similar products or services. It is very difficult to sell a product or service based upon features.
A term used to describe any location outside one’s home base be it an actual office or one’s residence.
A synonym for “prediction”, this term is used to predict how well sales efforts will be. It is important to note that forecasting should be used as a loose guide as many outside factors can vary the accuracy of a forecast.
This is a person or people with the ability to assist a decision-maker in choosing a product or service.
In the context of sales, this is a non-physical attribute that relates to a product or service.
In the sales context this relates to a third party bringing a salesperson and a prospective client together.
A person or business who eventually may become a client.
One of the most important aspects in selling, this trait must be practiced in order to obtain the best results. Just as important as listening, is knowing how to react to what one hears.
A category of prospective customers that takes minimal effort to turn into paying customers.
Often confused with sales and advertising, marketing is the process in which a company uses tools to make people aware of the product or service they are offering. This is done in hopes of having prospective clients be placed in front of a salesperson to begin the sales process.
The amount added over the cost of a product or service attributed toward profit.
The act performed by a purchaser and a provider in which a compromise is sought by both parties. This process assumes the parties begin the process with differing goals. The better negotiator will usually end up closer to their original goal than a lesser skilled negotiator.
An expression of disapproval or disagreement.
The beginning stage of a sales call or sales meeting.
This describes how a prospective client views a given item such as a product, a service, the salesperson, or the company. Being able to influence a prospective client’s perception is a valuable sales tool.
Qualify in advance to take part in business.
The package a salesperson uses to address a prospective client. The presentation may include a pitch, visuals, slides (i.e. PowerPoint) and brochures. Although these tools may add some value, presentations do not sell by themselves.
The potential ability or level of efficiency of a business to yield a financial gain (profit) after all expenses and costs have been deducted.
This is the difference between what an item costs and at what price the item is sold. It is important to note that indirect costs such as taxes and overhead may or may not have been included in one’s profit calculations.
An offer (either written or oral) provided by the seller to the prospective client setting forth what will be delivered and under what terms.
A person or company that a provider deems may be interested in purchasing the provider’s product or service.
A baseline created to measure one’s productivity or effectiveness.
The point in the sales process where a prospective client raises objections.
A bond created between a salesperson and a prospective client. Good rapport is often an integral part of creating trust.
A prospective client referred by an outside (usually trusted) source.
A visualization of the sales process that projects the stages through which prospects go through as they are led by a sales person towards a decision to purchase.
Issue or issues a prospective client voices that is keeping them from purchasing a product or service. It is difficult to make a sale by directly trying to address individual objections.
A term used to describe where in the sale process a prospective client lies.
Evaluating something or someone to assess suitability for a role or purpose.
A written guide produced for salespeople to assist them with handling a contact. Scripts guarantee consistency and allow salespeople to practice and act more natural when overcoming objections
A portion of the overall sales market used to target marketing or sales. This is often done by creating vertical sectors.
In the sales sense this is a product that has physical traits or a service that can be measured.
A pattern or mold used as a guide to form a piece being made.
A formal statement testifying a person or company’s character and qualifications.
Resolution
The act or process of reducing or lessening taxes.
This is a tax return that is created to replace an already filed return. This type of return is prepared to indicate a change in information from the originally filed return. There are limitations as to what information can be amended. The taxpayer has up to three years from the due date of the original return to file an amended return if it was filed timely. If the return was filed late, the taxpayer has up to three years from the date of filing.
This is a process that allows taxpayers to contest assessments and other findings by governmental taxing agencies. The IRS offers several methods to appeal including Collections Appeal Procedures (“CAP”), Collection Due Process (“CDP”), Fast Track Appeals, Fast Track Mediation, and tax court.
This is a procedure that the governmental taxing agencies use to verify the accuracy of income, deductions, or other information that was reported in a filed tax return. Audits may be conducted in person (Usually with a representative of the taxpayer), by phone, by email, or by correspondence.
This is a department that uses computer driven automation in combination with live representatives to collect from delinquent taxpayers via telephone and correspondence.
A table containing all of the taxpayer’s assets, encumbrances, and exemptions which calculates equity included in the reasonable collection potential (RCP) calculation.
This is the sum of liabilities stemming from assessments of previously filed tax returns that remain unpaid, and assessments made for returns that have not yet been filed. See Substitute for Return (“SFR”)
If certain rules are met, income taxes may be discharged via this type of legal proceeding. In order to qualify, among other requirements, the liabilities must meet the Three-Year Rule, The Two Year Rule and the 240 Day Rule.
The responsibility and duty of each taxpayer to provide proof that their tax return is accurate.
Typically, debt that is forgiven is considered taxable. In certain cases, income may be excluded. One such example includes if a taxpayer was insolvent at the time the debt was forgiven.
A net gain/loss obtained from the sale of property or assets including real estate, stocks, bonds, and mutual fund shares. A gain/loss is defined as a short-term capital gain/loss if the property or assets that produced it have been held for less than one year and as a long-term capital gain if they have been held for more than twelve months.
A unit where the power of attorney (POA) is filed.
This is the removal of a Federal tax lien against specific property. This type of discharge is often issued in order to allow for the sale of said property.
A donation made to an organization or person that exists for the benefit of the public. A tax deduction is permitted for such contributions when the receiving organization has received tax exempt status under section 501(c)(3)of the Internal Revenue Code.
This is an addendum to the terms agreed upon in an Offer In Compromise. The taxing agencies will require this type of agreement if they believe a taxpayer’s income may increase significantly in the near future. Typically this type of agreement requires the taxpayer to pay more than the terms agreed upon in the offer if their income reaches certain thresholds.
An administrative appeal program that puts disputed issues before the Appeals Office for expedited Resolution. Use form 9423
The IRS must provide a 30 day notice of the right to request a hearing in the Appeals Office before property can be taken by levy or seizure. Use Form 12153.
This document is what the taxing agencies require if a taxpayer wants to claim financial hardship as it relates to paying delinquent taxes. In addition to other information, the taxing agencies want to see what income, expenses, assets, and liabilities the taxpayer has.
This is the period of time a taxing agency has to collect from a taxpayer once tax has been assessed. The IRS period is 10 years. Some States have periods spanning much longer. Certain actions including filing appeals, submitting an Offer In Compromise, and residing out of the country for more than 6 consecutive months can extend (“toll”) the statute.
This is an audit by the government in which the taxpayer provides the requested information via mail and once a determination is made, the results are also sent to the taxpayer via mail. Some audits begin as correspondence audits and become face-to-face audits if (1) the government wants to expand the scope or (2) the taxpayer does not agree with an additional assessment.
This is when the government places a hold on collection for a set period of time based upon the taxpayer’s inability to pay. In essence, CNC status is equivalent to a zero-dollar installment agreement. CNC status is temporary. Typically, the government will revisit the taxpayer’s ability to pay within a 2-year period.
An IRS division that serves the American public by investigating criminal violations of the Internal Revenue Code andother financial crimes
An amount that is subtracted from taxable income to decrease the amount of income that is subject to tax.
This is a tax return that is filed after the prescribed deadline. Those filing Federal and most State income tax returns may apply for a 6-month extension of time to file. If this is done, the amount due with the return is still due by the original filing date. If a tax return is placed on extension and subsequently filed one day later than the extension deadline, it is by definition 6 months and one day late.
A qualifying child or relative that can be claimed by a taxpayer as a dependency exemption on a tax return.
A deduction pertaining to the gradual loss in value of property starting with the original cost of the property and continuing over its assigned tax life.
The basis for acceptance of an Offer In Compromise in which their is doubt that the tax can fully be paid. Use form 656.
The basis for acceptance of an Offer in Compromise in which there is doubt that the taxpayer’s liability is correct. Use form 656-L.
Taxable income received for employment which includes wages, tips, long-term disability income, strike benefits, and income from self-employment.
A written agreement that describes the business relationship between a company and a client.
An Enrolled Agent (“EA”) is approved by the IRS to practice in several areas of taxation. These areas include preparing taxes, representing clients in collection matters, and some levels of appeal. An EA cannot represent a taxpayer in tax court.
Tax payments made to cover a taxpayer’s projected tax liability for the current tax year when they have income that is not subject to withholding.
This is a payment employers make to the taxing agencies comprised of Social Security, Medicare, and income taxes withheld from pay. The frequency at which these payments must be made vary anywhere from weekly to quarterly depending on number of employees and amounts being withheld.
This is a collection tool taxing agencies use to seize assets including wages, bank accounts, retirement funds, investment funds, and pay from clients to self-employed individuals.
This is a program taxing agencies offer to relieve an injured spouse from liability assessed to their corresponding spouse. Based upon certain criteria, the injured spouse must prove that the meet the standards set by the taxing agency. The IRS recently eased the requirements necessary for an injured spouse to obtain relief.
An Installment Agreement is enacted when a taxing agency allows a taxpayer to make payment over a prescribed period of time. The payment amounts will either be based upon full-paying the liability over a given period of time or making payments that equate to less than the full amount owed including penalties and interest based upon hardship.
This department that assigned to collect from people and businesses that have unpaid taxes. These collectors are called Revenue Officers as opposed to Revenue Agents who conduct tax audits.
An IRS manual that has instructions on how to carry out all administrative and procedural affairs, such as how to process and audit returns, access penalties, collect taxes, etc.
Used interchangeably with garnishment, a levy occurs when assets such as wages, bank accounts, retirement funds, investment funds, and pay from clients to self-employed individuals are seized.
A tax relief option that allows a taxpayer to decrease an existing tax liability by applying net operating losses for the current year against a gain from a previous year.
This is a formal notice provided by the IRS when a taxpayer fails to pay or respond within a prescribed period of time. The recipient has 90 days from the date of notice to provide a response or file a petition in tax court.
In order to protect their interest, the IRS will file a tax lien against a person’s or business’s real or personal property. This notice is recorded in the county where the above-mentioned property resides to let the public (including creditors) know the IRS’s position.
This is a formal notice given to a taxpayer by the taxing agency, employer, third party payer, or financial institution shortly after a levy has been issued. In the case of a bank levy, prior to remitting said assets to the taxing agency, the taxpayer has a prescribed period of time to request that the assets be returned. The IRS provides 21 days from the date of levy for the taxpayer to request that assets be returned.
An Offer In Compromise (“OIC”) is an agreement between the IRS and taxpayer that allows unpaid taxes to be settled for an amount less than owed. The IRS bases the offer amount on 12 times (24 in some cases) one’s monthly disposable income plus their quick sale value of assets. The three types of IRS offers are Doubt as to Liability, Doubt as to Collectability, and Effective Tax Administration.
This is an installment agreement that a delinquent taxpayer enters in which they will end up paying a lower amount than they owe. This occurs because the statute of limitations on collection will expire prior to the tax being fully paid. The IRS will only allow this type of installment agreement if (1) the taxpayer qualifies for hardship and (2) the IRS believes that the taxpayer’s income will not increase substantially within the collection statute.
The amount/s assessed by taxing agencies for things such as failure to pay, failure to file, or failure to respond. Penalties and interest are added to one’s principle tax liability and continue to grow as allowed by law. Penalties accrue interest.
This happens when a taxing agency removes penalties based upon a request from the taxpayer or their representative. To request penalty abatement, one must provide a reason. There are numerous reasons which include accountant error, illness, and family emergency. The IRS offers a first time abatement program (“FTA”) to taxpayers that meet certain requirements. While penalties may be abated, interest most often cannot.
This is a form used by the taxing agencies which allow a designated representative to obtain information and discuss matters pertaining to a client’s tax concerns. The IRS allows CPA’s, attorneys, and enrolled agents to be included in power of attorney.
If a taxpayer is due a refund more than three years from the time a tax return was due or two years from the time the tax was paid, they will (1) not receive the refund and (2) the refund will not be applied to their account.
Revenue Officers are assigned to cases in which the IRS has not been able to collect with attempted letters, levies, garnishments, phone calls, and emails from IRS automated collections.
This type of tax is comprised of social security and Medicare (FICA) tax that is calculated for people who work for themselves and do not have these amounts taken out of their pay.
Laws that put time limits on many tax-related actions. The Statute for the IRS regarding collecting a tax liability with any interest and penalties that have accrued on the liability is 10 years from the date the tax was assessed. The Statute for auditing a tax return is three years from the filing deadline for the return.
This process allows the IRS to set aside their tax lien (Temporarily) so that a delinquent taxpayer may proceed with the sale or refinance of their property. This may be done so someone can put themselves in a better financial position. A condition of this process sometimes requires that a portion of the money gained by the delinquent taxpayer be given over to the IRS.
The IRS prepares interim tax returns for the purpose of assessing liability for years a taxpayer failed to file. This return the IRS prepares is based upon income information and limited expense information reported to the IRS. A SFR includes basic deductions and exemptions which may be less than what a taxpayer can actually take. An SFR may also preclude a taxpayer from including the liability for the year of the SFR from being discharged in bankruptcy.
A form used by governments to report income, deductions, withholding, payroll, sales, and other items in order to determine what amount of tax should be levied. Types of tax returns include individual income tax returns, corporate income tax returns, partnership income tax returns, payroll tax returns, sales tax returns, estate tax returns and gift tax returns.
These are assessments that governments (federal, state, and local) levy against its constituents to pay for public services.
Assessed as a civil penalty to companies as well as personally to anyone deemed responsible for not making payroll tax deposits, this penalty equates to the amount of income tax withheld from employees pay combined with the employee’s portion of Medicare and social security tax withheld.
This is one of several ways in which the taxing agencies collect unpaid tax. In this instance, the taxing agencies require that an employer withhold and remit a portion of the delinquent taxpayer’s wages. In some cases, the IRS will take all of an employee’s earnings with the exception of what amounts to minimum wage.