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Unadjusted Basis: The basis of property for purposes of figuring depreciation under ACRS or MACRS. The unadjusted basis is the original cost or other basis without regard to salvage value. 

Underpayment Penalty: If a taxpayer did not pay enough tax on a timely basis during the year, he or she will have an underpayment of estimated tax, and may, depending on circumstances, be required to pay a penalty. The penalty, if any, is computed on Form 2210. 

Unearned Income: Taxable income other than that received for services performed (earned income). Unearned income includes money received for the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions, alimony, unemployment compensation, and other income that is not earned. 

Unlike Properties: Properties that are used for different purposes and/or are of different types. 

Unstated Interest: Interest that must be calculated and the sale price reduced by this amount when interest is not stated in an installment agreement or the interest rate used is less than the applicable rate.

Vacation Home: The tax Code places restrictions upon taxpayers who rent their residences or vacation homes to others for part of the tax year. The restrictions may result in scaling down of expense deductions for such taxpayers. 

Vested Benefits: Pension benefits owned by the taxpayer.

Voluntary Compliance: A system of compliance that relies on individual citizens to report their income freely and voluntarily, calculate their tax liability correctly, and file a tax return on time," according to the Internal Revenue Service.

The income tax system is voluntary. That's because people are free to arrange their financial affairs in such a way to take advantage of any tax benefits. Voluntary does not mean that the tax laws don't apply to you. Voluntary means you can minimize your taxes by taking advantage of various deductions and tax credits.

Voluntary also means that you must tell the IRS what your tax liability is. And the only way to do that is to file a tax return.

Wage: Is the amount of money paid for some specified quantity of labor. When expressed with respect to time (usually per hour), it is typically called the wage rate, and is specified in pre-tax amounts. It is often the main monetary item upon which the worker and the employer focus when negotiating an employment contract.

Withholding: Your employer takes out a certain amount from your check for the government. You are credited for these taxes when you file your return. This money is used to pay for your federal income taxes, federal social security, and Medicare taxes, and state and local income taxes.