LSDefine
Simple English definitions for legal terms
A quick definition of closing agreement:
A closing agreement is a
written contract between a person and the Internal Revenue Service (IRS) to settle a tax dispute. It's like making a deal with the IRS to resolve any issues about taxes. It's important to have a closing agreement to avoid any legal problems with the IRS.
A more thorough explanation:
A closing agreement is a written contract between a taxpayer and the Internal Revenue Service (IRS) to resolve a tax dispute. It is a legally binding agreement that settles the dispute and prevents further legal action.
For example, if a taxpayer is audited by the IRS and there is a disagreement about the amount of taxes owed, they may enter into a closing agreement to settle the dispute. The agreement will outline the terms of the settlement, such as the amount of taxes owed and any penalties or interest.
closed trial |
closing of estate