Faramarz Fayeghi and Shelli Fayeghi - Page 8

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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