- 4 -
As is relevant here, a deficiency is defined in section
6211(a) to be “the amount by which the tax imposed by subtitle A
[relating to income taxes] * * * exceeds * * * the amount shown
as the tax by the taxpayer upon his return”. The treatment of
section 32 earned income credits with respect to this definition
is as follows:
SEC. 6211(b). Rules for Application of Subsection
(a).--For purposes of this section--
* * * * * * *
(4) For purposes of subsection (a)--
(A) any excess of the sum of the credits
allowable under sections 32 and 34 over the tax
imposed by subtitle A (determined without regard
to such credits), and
(B) any excess of the sum of such credits as
shown by the taxpayer on his return over the
amount shown as the tax by the taxpayer on such
return (determined without regard to such
credits),
shall be taken into account as negative amounts of tax.
Section 6211(b)(4) was enacted by section 1015(r) of the
Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100-647,
102 Stat. 3572, which relates to certain refundable credits to be
assessed under deficiency procedures. House Report 100-795
contains the following explanation of section 6211(b)(4):
Present Law
Under present law, the deficiency procedures
allowing taxpayers to litigate issues in the Tax Court
relating to the earned income credit (sec. 32) and the
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011