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"deficiency" means the amount by which the tax imposed
by subtitle A or B * * * exceeds the excess of--
(1) the sum of
(A) the amount shown as the tax by the
taxpayer upon his return * * *, plus
(B) the amounts previously assessed (or
collected without assessment) as a
deficiency, over--
(2) the amount of rebates, as defined in
subsection (b)(2), made.
In short, a deficiency arises when respondent determines that the
amount of tax imposed exceeds the sum of the amount of tax shown
on the return and the amount of tax previously assessed.
Although the Commissioner must issue a notice of deficiency
and respect the deficiency procedures prior to the assessment and
collection of a deficiency, the Commissioner is required to
immediately "assess all taxes determined by the taxpayer or by
the Secretary as to which returns or lists are made under this
title". Sec. 6201(a)(1). As explained in Meyer v. Commissioner,
supra at 559, the Commissioner is authorized to immediately
"assess and collect the amount of taxes that are computed and
shown due on a taxpayer's original income tax return, as well as
the amount of any additional taxes computed and shown due on a
subsequently filed amended income tax return." The Commissioner
likewise is authorized to immediately assess and collect the
addition to tax under section 6651(a)(2) and the addition to tax
under section 6651(a)(1) if such additions are measured by the
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Last modified: May 25, 2011