Tax Deficiency

Tax Audits and Appeals, Taxes & IRS
Published Date: October 24, 2024
Last Modified: 2 months ago

What is a Tax Deficiency, and How Does It Affect You?

A tax deficiency is the amount of additional tax the IRS determines you owe, beyond what you initially reported on your tax return. This happens when the IRS believes you underpaid your taxes. It’s the difference between the correct amount of tax and what you actually paid.

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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.

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Tax Audits and Appeals, Taxes & IRS

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