Vocabulary Words Every Tax Consultant Should Know

Tax

Definition: A compulsory financial charge imposed by the government.

• Everyone pays tax on their income.
• He learned about tax rates in his economics class.
• Taxes fund public services like schools and roads.

Tax in a sentence

Income

Definition: The money received for work or through investments.

• Her income helps support the family.
• He saved part of his income for a vacation.
• They discussed ways to increase their income.

Income in a sentence

Money

Definition: Paper or coins used to buy things.

• I need money to buy a new book.
• He saved his money for a new bike.
• We use money to pay for food.

Money in a sentence

Pay

Definition: To give money for goods or services.

• I will pay for my lunch today.
• She forgot to pay the bill on time.
• They need to pay for their movie tickets.

Pay in a sentence

Form

Definition: The shape or structure of something; also can mean to create.

• The teacher asked us to fill out a form.
• He likes to form new ideas during discussions.
• Understanding the different forms of art can enhance appreciation.

Form in a sentence

Return

Definition: To go back to a place or give something back.

• I will return the book to the library.
• Please return the favor when you can.
• He plans to return home next week.

Return in a sentence

Rate

Definition: To evaluate or assess something.

• We need to rate the movie we watched.
• She will rate the performance of the team.
• Please rate your experience at the restaurant.

Rate in a sentence

Refund

Definition: To give back money that was paid for a product or service.

• She received a refund for the defective item.
• You can request a refund if you're not satisfied.
• The store policy allows for a full refund within 30 days.

Refund in a sentence

Credit

Definition: Recognition or acknowledgment, often for work done.

• She received credit for her hard work.
• You need to give credit to the author.
• He got credit for his contribution to the project.

Credit in a sentence

Deduction

Definition: The process of reaching a conclusion based on reasoning; also refers to a subtraction.

• He made a deduction based on the evidence.
• Tax deduction helps reduce the amount owed.
• The deduction from his salary was explained clearly.

Deduction in a sentence

Expense

Definition: The cost incurred in the course of doing business or personal activities.

• She tracked her monthly expenses carefully.
• The expense report was submitted for approval.
• Understanding expense management is crucial for budgeting.

Expense in a sentence

Save

Definition: To keep something safe or to store for later.

• I save money for a new bike.
• Please save your work before turning off the computer.
• They save energy by using less electricity.

Save in a sentence

Bill

Definition: a statement of money owed

• He received a bill for his phone service.
• The bill was higher than expected.
• She paid the bill at the restaurant.

Bill in a sentence

Account

Definition: A record of financial transactions; a personal description of events.

• She opened an account at the bank.
• He shared his account of what happened.
• The account showed all his expenses.

Account in a sentence

File

Definition: A collection of documents or data stored together.

• I need to organize my files on the computer.
• He saved the file in a new folder.
• Please check the file for the latest updates.

File in a sentence

Year

Definition: A period of 365 days or 12 months.

• Her birthday is in the new year.
• He plans to travel next year.
• This year has been very busy for them.

Year in a sentence

Total

Definition: the complete amount or sum

• The total cost of the items is $50.
• She calculated the total for the bill.
• Understanding total helps in math.

Total in a sentence

Cash

Definition: Money in the form of coins or banknotes.

• I prefer to pay in cash.
• He kept some cash in his wallet.
• They accepted cash for the ticket.

Cash in a sentence

Check

Definition: To look at something to verify its accuracy; a written order for payment.

• Please check your answers before submitting.
• He wrote a check to pay for the groceries.
• She will check the schedule for the meeting.

Check in a sentence

Help

Definition: To assist someone with something.

• Can you help me with my homework?
• She helped her mother in the kitchen.
• He always helps his friends.

Help in a sentence

Rules

Definition: guidelines for behavior or actions

• The teacher explained the classroom rules.
• He broke the rules during the game.
• Following the rules helps everyone.

Payment

Definition: Money given for goods or services.

• I made my payment for the concert tickets.
• The payment is due at the end of the month.
• We can process your payment online.

Payment in a sentence

Audit

Definition: An official examination of accounts or financial records.

• The school will conduct an audit of its budget.
• An audit helps ensure that everything is accurate.
• They hired a company to perform the audit for transparency.

Audit in a sentence

Savings

Definition: Money that has been set aside or saved for future use.

• She deposited her savings in a bank account.
• His savings helped him buy a new bike.
• Understanding savings is important for financial planning.

Savings in a sentence

Profit

Definition: The financial gain made after subtracting expenses.

• The business made a profit last year.
• They hope to increase their profit this quarter.
• His hard work led to a profit for the company.

Profit in a sentence

Loss

Definition: the state of losing something; not having something anymore

• His loss of a pet made him very sad.
• The team felt the loss of their star player.
• She experienced a loss when her grandmother passed away.

Loss in a sentence

Gain

Definition: To acquire or increase something, such as a benefit or advantage.

• She wants to gain more experience in her field.
• He hopes to gain confidence through practice.
• They aim to gain new skills during training.

Gain in a sentence

Liability

Definition: the state of being responsible for something, especially in law

• He accepted liability for the accident.
• The company has a liability to its employees.
• Understanding liability is important in business.

Liability in a sentence

Revenue

Definition: The income generated from normal business operations.

• The company's revenue increased this year.
• They need to find ways to boost their revenue.
• Government revenue comes from taxes.

Revenue in a sentence

Exemption

Definition: A freedom from a duty or rule; being excused from something.

• Students may receive an exemption from fees based on need.
• He applied for a tax exemption this year.
• Understanding exemptions can help in financial planning.

Exemption in a sentence

Bracket

Definition: a support that holds something up

• The shelf needs a bracket to stay level.
• He installed a bracket to hold the TV.
• Brackets come in different shapes and sizes.

Bracket in a sentence

Statement

Definition: A clear expression of something in speech or writing.

• The teacher asked for a statement about the project.
• He made a statement about his favorite book.
• She wrote a statement to explain her opinion.

Statement in a sentence

Schedule

Definition: A plan that shows when tasks or events will happen.

• I have a busy schedule this week.
• She made a schedule for her study time.
• They checked the schedule for movie times.

Schedule in a sentence

Estimate

Definition: An approximate calculation or judgment.

• Can you give me an estimate of the cost?
• The estimate showed we would finish on time.
• She made an estimate of how many people would attend.

Estimate in a sentence

Investment

Definition: The action of putting money into something to earn more money in the future.

• He made a smart investment in stocks.
• They discussed investment options for their savings.
• Her investment in education paid off.

Investment in a sentence

Property

Definition: Something owned, like a house or land.

• The house is my family's property.
• He bought a new property in the countryside.
• They take good care of their property.

Property in a sentence

Benefit

Definition: An advantage or profit gained from something.

• Exercise has many health benefits.
• The scholarship will benefit students in need.
• We all benefit from working together.

Benefit in a sentence

Compliance

Definition: Following rules or standards.

• The company is in compliance with safety regulations.
• They ensured compliance with the new laws.
• She checked for compliance with the guidelines.

Compliance in a sentence

Capital

Definition: The city where a government is based; also refers to wealth used for investment.

• London is the capital of England.
• The company needs capital to expand its business.
• Understanding the concept of capital is important in economics.

Capital in a sentence

Asset

Definition: Something valuable owned by a person or company.

• The house is their biggest asset.
• Her skills are a great asset to the team.
• Investing in education is an important asset.

Asset in a sentence

Depreciation

Definition: the decrease in value of an asset over time

• The car's depreciation means it's worth less than when we bought it.
• Understanding depreciation helps in calculating taxes.
• He learned about depreciation in his finance class.

Depreciation in a sentence

Taxable

Definition: Subject to taxation; able to be taxed.

• Her income was taxable under the new law.
• Certain gifts may also be taxable.
• He learned which products are taxable in his class.

Taxable in a sentence

Allocation

Definition: The process of distributing resources or duties for a specific purpose.

• The allocation of funds will help improve the library.
• They discussed the allocation of tasks among team members.
• Understanding allocation is important for project management.

Allocation in a sentence

Regulation

Definition: A rule or directive made and maintained by an authority.

• The regulation ensures safety.
• They followed the regulation carefully.
• New regulation was introduced for better practices.

Regulation in a sentence

Jurisdiction

Definition: The official power to make legal decisions and judgments; the area of authority.

• The court has jurisdiction over criminal cases.
• Understanding jurisdiction is important in law.
• They debated the jurisdiction of the local court.

Jurisdiction in a sentence

Assessment

Definition: An evaluation or test to measure knowledge or skills.

• The teacher gave an assessment to check our progress.
• We will have a math assessment next week.
• Assessments help identify areas to improve.

Assessment in a sentence

Fiscal

Definition: Related to government revenue, spending, and financial matters.

• The government announced a new fiscal policy.
• Fiscal responsibility is important for a healthy economy.
• She studied fiscal management in her finance course.

Fiscal in a sentence

Incentive

Definition: Something that motivates or encourages someone to do something.

• The bonus was an incentive for employees to work harder.
• They offered an incentive for early registration.
• Incentives can improve productivity in the workplace.

Incentive in a sentence

Entity

Definition: Something that exists as a distinct, separate unit; can be a person or organization.

• The company is a legal entity under state law.
• They formed a new entity to manage the project.
• Understanding entity concepts is important in business.

Entity in a sentence

Provision

Definition: the act of supplying or providing

• The provision of food is essential for the event.
• They made a provision for emergencies.
• The contract included a provision for overtime pay.

Provision in a sentence

Remittance

Definition: A sum of money sent as payment or support.

• She sent a remittance to her family overseas.
• The remittance arrived just in time for the holidays.
• He relies on monthly remittances from his job.

Remittance in a sentence

Withholding

Definition: The act of keeping back or not giving something, often used in financial contexts.

• Withholding taxes means that a portion of income is not given to the employee.
• He learned about withholding in his economics class.
• Understanding withholding is important for financial literacy.

Withholding in a sentence

Reconciliation

Definition: The process of restoring friendly relations or resolving differences.

• They sought reconciliation after their argument.
• Reconciliation is important for maintaining friendships.
• The reconciliation of their views led to a better understanding.

Reconciliation in a sentence

Capital Gains

Definition: Profits from the sale of assets or investments.

• Capital gains taxes are applied to profits made.
• They discussed strategies to minimize capital gains.
• Understanding capital gains is essential for investors.

Capital Gains in a sentence

Statutory

Definition: Related to laws or statutes; legally required.

• Statutory regulations must be followed by companies.
• He learned about statutory obligations in class.
• The government set statutory guidelines for safety.

Statutory in a sentence

Accrual

Definition: The accumulation of something over time.

• Accrual of interest can increase savings.
• The accountant explained the accrual process.
• Accrual accounting reflects financial realities.

Accrual in a sentence

Threshold

Definition: The point at which something begins or changes.

• She stood at the threshold of the door, ready to enter.
• The threshold for passing the exam is 70% correct answers.
• They measured the threshold for noise levels in the classroom.

Threshold in a sentence

Subsidiary

Definition: A company controlled by another, larger company; also refers to something of secondary importance.

• The corporation owns several subsidiary companies.
• She works for a subsidiary of a larger firm.
• Subsidiary businesses often support the main company.

Valuation

Definition: the process of determining the value of an asset

• The valuation of the company was conducted last week.
• He learned how to perform a business valuation.
• Valuation helps in making investment decisions.

Valuation in a sentence

Loophole

Definition: A gap or ambiguity in a law or rule that allows for exceptions or avoidance.

• They found a loophole in the tax law.
• The company exploited a loophole to save money.
• Understanding loopholes can help in legal matters.

Loophole in a sentence

Jurisdictional

Definition: Related to the authority of a court or organization to make legal decisions.

• The jurisdictional rules determine which court hears the case.
• She questioned the jurisdictional limits of the court.
• Understanding jurisdictional matters is crucial in law.

Jurisdictional in a sentence

Fiduciary

Definition: A person entrusted with the responsibility to manage someone else's money or assets.

• A fiduciary must act in the best interest of their clients.
• He serves as a fiduciary for the family trust.
• Understanding fiduciary duties is essential in finance.

Fiduciary in a sentence

Forensics

Definition: The scientific methods used in criminal investigations.

• Forensics is a vital part of modern law enforcement.
• She studied forensics to help solve cases.
• Forensics can provide evidence in court.

Forensics in a sentence

Solvency

Definition: The ability of an individual or organization to meet its long-term financial obligations.

• The company’s solvency was assessed during the audit.
• Maintaining solvency is crucial for business success.
• He learned about solvency in his finance class.

Solvency in a sentence

Tax Bracket

Definition: A range of income that is taxed at a specific rate.

• His income put him in a higher tax bracket.
• Understanding tax brackets helps in financial planning.
• She was surprised to find out her tax bracket.

Tax Bracket in a sentence

Amnesty

Definition: A formal pardon for individuals or groups, often for political reasons.

• The government declared an amnesty for political prisoners.
• They granted amnesty to anyone who had escaped.
• Amnesty can help heal divisions in society.

Amnesty in a sentence

Attribution

Definition: the act of assigning a cause or source

• Attribution of the quote was debated.
• Understanding attribution is important in research.
• The attribution of the idea was unclear.

Attribution in a sentence

Enforcement

Definition: The act of ensuring compliance with laws and regulations.

• Law enforcement officers keep the community safe.
• They discussed the enforcement of traffic laws.
• Effective enforcement is crucial for justice.

Enforcement in a sentence

Stipulation

Definition: A condition or requirement specified in an agreement.

• The contract had a stipulation about payment.
• He accepted the job with the stipulation of a raise.
• Understanding stipulations is important in negotiations.

Stipulation in a sentence

Disbursement

Definition: The payment or distribution of money.

• The disbursement of funds was delayed due to paperwork.
• He received the disbursement for his scholarship.
• Tracking disbursements is important for budget management.

Disbursement in a sentence

Evasion

Definition: The act of avoiding something, often in a clever or dishonest way.

• His evasion of the question raised suspicions.
• She was skilled at evasion when discussing her plans.
• Evasion can lead to misunderstandings and mistrust.

Evasion in a sentence

Avoidance

Definition: The act of staying away from something or someone.

• Her avoidance of confrontation made discussions difficult.
• He practiced avoidance of unhealthy foods.
• Avoidance can sometimes lead to bigger problems.

Avoidance in a sentence

Transparency

Definition: The quality of being open and honest; allowing others to see what is happening.

• Transparency in business builds trust with customers.
• The company values transparency in its operations.
• Understanding transparency is important for good governance.

Transparency in a sentence

Substantiation

Definition: The action of providing evidence to support a claim or theory.

• The substantiation of his argument was impressive.
• The scientist provided substantiation for her findings.
• They required substantiation before accepting the results.

Substantiation in a sentence

Jurisprudence

Definition: The theory or philosophy of law and legal systems.

• Jurisprudence examines the principles behind laws.
• He studied jurisprudence to understand legal reasoning.
• Understanding jurisprudence is essential for aspiring lawyers.

Jurisprudence in a sentence

Indemnity

Definition: Security or protection against a financial loss or damage.

• The policy offered indemnity against theft.
• They sought indemnity for damages caused by the storm.
• Indemnity clauses are common in contracts.

Indemnity in a sentence

Benchmarking

Definition: The process of comparing performance metrics to industry standards.

• Benchmarking helps identify areas for improvement.
• She conducted benchmarking to assess the company's efficiency.
• Understanding benchmarking is essential for business growth.

Benchmarking in a sentence

Harmonization

Definition: The process of creating harmony or agreement.

• The harmonization of the music made it sound beautiful.
• They focused on the harmonization of their ideas during the meeting.
• Harmonization can improve teamwork.

Harmonization in a sentence

Stratification

Definition: the arrangement of something into different layers or levels

• Stratification in society can affect opportunities.
• Geologists study stratification in rock formations.
• The stratification of students helps tailor lessons.

Stratification in a sentence

Consolidation

Definition: the process of combining multiple things into one

• The consolidation of the two companies created a larger business.
• They are working on the consolidation of their debts.
• Understanding consolidation helps in understanding finance.

Consolidation in a sentence

Diversification

Definition: The process of varying investments or activities to reduce risk.

• Diversification in business can lead to greater stability.
• They discussed the importance of diversification in farming.
• Understanding diversification helps in planning.

Diversification in a sentence

Optimization

Definition: The process of making something as effective or functional as possible.

• They focus on optimization to improve performance.
• Website optimization helps increase traffic.
• He learned about optimization techniques in class.

Optimization in a sentence

Mitigation

Definition: Actions taken to reduce the severity or impact of something.

• Mitigation strategies help lessen the effects of climate change.
• He focused on mitigation efforts for environmental protection.
• Understanding mitigation can prevent future risks.

Mitigation in a sentence

Contingency

Definition: a future event that may happen and requires planning

• Having a contingency plan is important for emergencies.
• They prepared a contingency for their outdoor event.
• Understanding contingency helps in risk management.

Contingency in a sentence

Due Diligence

Definition: The careful review and consideration of important information.

• Due diligence is necessary before making big decisions.
• He conducted due diligence before investing in the company.
• Performing due diligence helps prevent mistakes.

Representation

Definition: The action of speaking or acting on behalf of someone; a portrayal of something.

• The representation of diverse characters is important in media.
• He was chosen for representation at the conference.
• Her artwork is a representation of her culture.

Representation in a sentence

Advocacy

Definition: The act of supporting a cause or proposal.

• She is known for her advocacy for children's rights.
• Advocacy can lead to important changes in society.
• His advocacy work focused on environmental issues.

Advocacy in a sentence

Disclosure

Definition: The act of making something known or revealing information.

• The disclosure of the report surprised everyone.
• He signed a disclosure agreement before sharing details.
• Transparency requires timely disclosure of important information.

Disclosure in a sentence

Recourse

Definition: A source of help or support in a difficult situation.

• If there’s a problem, you have recourse to customer service.
• They sought recourse after the accident.
• In emergencies, recourse to emergency services is essential.

Recourse in a sentence

Litigation

Definition: The process of taking legal action; a lawsuit.

• Litigation can be expensive and time-consuming.
• They decided to avoid litigation and settle.
• She studied litigation in law school.

Litigation in a sentence

Arbitration

Definition: A process where a neutral third party helps resolve disputes between two sides.

• Arbitration is often used to settle business disagreements.
• They agreed to arbitration to avoid going to court.
• Understanding arbitration can help in conflict resolution.

Arbitration in a sentence

Settlement

Definition: An official agreement or a community where people live.

• The peace settlement ended the conflict.
• They moved to a new settlement in the countryside.
• The settlement was established many years ago.

Settlement in a sentence

Adjudication

Definition: the process of making a formal judgment

• The adjudication of the case took several months.
• We learned about adjudication in law class.
• Adjudication helps resolve disputes fairly.

Adjudication in a sentence

Preemption

Definition: The act of taking action to prevent something from happening; often used in legal contexts.

• The law allows for preemption in cases of emergency.
• Preemption can help mitigate risks before they occur.
• He studied preemption in his public policy class.

Preemption in a sentence

Enforcement.

Definition: The act of ensuring compliance with laws or regulations.

• Enforcement of the rules is important for fairness.
• They focused on enforcement during the training session.
• Understanding enforcement practices helps in legal matters.