Related Terms

Understanding the terminology is helpful. Here are a few terms related to a tax deficiency:

  • Tax Liability: The total amount of tax you owe.
  • Tax Audit: An examination of your tax return by the IRS.
  • Penalties: Additional charges for not complying with tax laws.
  • Interest: A fee charged on unpaid taxes.
  • Installment Agreement: A payment plan with the IRS.