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Glossary

Clear definitions of IRS forms, compliance rules, and key business terms for entrepreneurs and professionals operating in the U.S.


Business terms

  • 147C – EIN Verification Letter: Verification letter issued by the IRS at the taxpayer’s request to confirm an existing EIN. It serves as a replacement if the original CP 575 (Official EIN letter) was lost or not received.

  • 1583 – USPS Authorization Form: USPS authorization form that allows a Commercial Mail Receiving Agency (CMRA) to receive and open mail on behalf of an individual or business. Requires identity verification and notarization.

  • Amendment: Official modification or correction to company information, such as business name, members, address, or registered agent. May be filed with the state, the IRS, or both, depending on the change.

  • Annual Report: Required state-level filing (annual or biennial) to maintain a business in good standing. May include payment of franchise tax or other state fees. It is not a federal tax return.

  • BE-13: Survey issued by the Bureau of Economic Analysis (BEA) to collect data on foreign direct investment in the United States.

  • BOI – Beneficial Ownership Information Report: Filing submitted to FinCEN under the Corporate Transparency Act disclosing a company’s beneficial owners.

  • Business Permit / License: Official authorization required to legally operate a business at the city, county, or state level. Requirements vary depending on business activity and location.

  • Bylaws: Internal governing document of a corporation outlining rules for director elections, meetings, and corporate decision-making.

  • Certificate / Articles of Incorporation: State-level formation document that legally creates a corporation (C-Corp or S-Corp).

  • Certificate of Formation / Articles of Organization: State-level formation document that legally creates a Limited Liability Company (LLC).

  • CMRA – Commercial Mail Receiving Agency: A business authorized by the USPS to receive mail on behalf of individuals or companies. Requires Form 1583 authorization.

  • Company Documents: Core formation and governance documents of a business. For LLCs: EIN Letter, Certificate of Formation/Articles of Organization, and Operating Agreement. For Corporations: EIN Letter, Certificate/Articles of Incorporation, and Bylaws.

  • CP 575 – EIN Confirmation Letter: Official IRS notice issued after approval of Form SS-4 assigning an EIN to a business entity.

  • ECI – Effectively Connected Income: Income earned by a foreign person or entity that is effectively connected with a U.S. trade or business and taxed on a net basis at applicable rates.

  • Franchise Tax: State-imposed tax for the privilege of doing business in that state. Calculation methods vary and may be based on income, assets, net worth, or other factors.

  • IRS – Internal Revenue Service: The U.S. federal agency under the Department of the Treasury responsible for administering and enforcing federal tax laws.

  • ITIN – Individual Taxpayer Identification Number: Nine-digit number issued by the IRS to individuals who are required to have a U.S. taxpayer identification number but are not eligible for a Social Security Number (SSN).

  • Operating Agreement: Internal LLC document outlining ownership structure, management, operational rules, and profit distribution.

  • Registered Agent: Designated individual or company authorized to receive legal and official documents on behalf of a business entity within a specific state.

  • Resale Tax Certificate: State-issued document allowing businesses to purchase goods intended for resale without paying sales tax at the time of purchase.

  • Sales Tax: State or local tax imposed on the sale of goods and certain services. Businesses collect sales tax from customers and remit it to the appropriate tax authority.

  • SS-4 – Application for Employer Identification Number: IRS form used by entities to apply for an Employer Identification Number (EIN).

  • SSN – Social Security Number: Unique identification number issued to U.S. citizens and eligible residents for tax and social security purposes. Required for filing federal tax returns and accessing certain federal benefits.

  • USPS – United States Postal Service: Federal agency responsible for mail and package delivery services throughout the United States.

  • Virtual Address: Professional mailing address provided by a third-party service, allowing a business to receive mail and register a company without maintaining a physical office.


IRS Tax Forms

  • Form 1040: U.S. Individual Income Tax Return – Used by U.S. citizens and resident aliens to file their annual federal income tax return. U.S. citizens and resident aliens must report their worldwide income, even if they live outside the United States. Requires a valid Social Security Number (SSN).
  • Form 1040-NR: U.S. Nonresident Alien Income Tax Return -Used by nonresident aliens to report U.S.-source income, claim refunds, or pay taxes owed. Generally requires an Individual Taxpayer Identification Number (ITIN) if the individual is not eligible for an SSN.
  • Form 1065: U.S. Return of Partnership Income - An information return filed by partnerships to report income, gains, losses, deductions, and credits. 
  • Form 1099: A series of information returns used to report various types of income paid to individuals or entities.

    - Form 1099-INT: Reports interest income paid during the year.
    - Form 1099-MISC: Reports certain types of miscellaneous income, such as rents,               royalties, prizes, and awards.
    - Form 1099-NEC: Reports payments made to independent contractors and other  nonemployees.
  • Form 1120: U.S. Corporation Income Tax Return - Filed by C corporations to report income, deductions, credits, and calculate corporate income tax liability. Must generally be filed even if the corporation had no income during the tax year.
  • Form 1120-S: U.S. Income Tax Return for an S Corporation - An information return filed by S corporations. Reports income, deductions, and credits that pass through to shareholders. Must generally be filed even if there was no income during the tax year.
  • Form 5472: Related Parties - Filed by a reporting corporation, including certain foreign-owned U.S. disregarded entities, to report reportable transactions with related parties. This is an information return only and does not calculate tax due or refunds.
  • Form 8804: Annual Return for Partnership Withholding Tax - Filed by partnerships to report and pay withholding tax on effectively connected taxable income (ECTI) allocable to foreign partners.
  • Form 8805: Foreign Partner’s Information Statement - Statement issued to each foreign partner detailing the tax withheld and credited to their account.
  • W-7: IRS application form for individuals not eligible for a Social Security Number to obtain an ITIN for tax purposes.
  • W-8BEN: Form used by non-U.S. individuals to certify foreign status and claim tax treaty benefits on U.S.-source income.
  • W-8BEN-E: Form used by non-U.S. entities to certify foreign status and claim tax treaty benefits.
  • W-9: Form used by U.S. persons and entities to provide their Taxpayer Identification Number and certify tax status for reporting purposes.

Official Sources: 

• IRS Forms & Instructions — https://www.irs.gov/forms-instructions
• About Form W-9 — https://www.irs.gov/forms-pubs/about-form-w-9
• About Form 1120 — https://www.irs.gov/forms-pubs/about-form-1120
• COI for BOI — https://www.fincen.gov/boi
• USPS Form 1583 — https://about.usps.com/forms/ps1583.pdf