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U.S. Federal Income Tax

Subjugation by taxation

Definition of a Deficiency

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TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 63 - ASSESSMENT
Subchapter B - Deficiency Procedures in the Case of Income, Estate, Gift, and Certain Excise Taxes

Sec. 6211. Definition of a deficiency
(a) In general
For purposes of this title in the case of income, estate, and gift taxes imposed by subtitles A and B and excise taxes imposed by chapters 41, 42, 43, and 44 the term "deficiency" means the amount by which the tax imposed by subtitle A or B, or chapter 41, 42, 43, or 44 exceeds the excess of - (1) the sum of (A) the amount shown as the tax by the taxpayer upon his return, if a return was made by the taxpayer and an amount was shown as the tax by the taxpayer thereon, 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.

Internal Revenue Code
Sec. 6211. Definition of a deficiency
(a) In general

For purposes of this title in the case of income taxes imposed by subtitle A, the term "deficiency" means the amount by which the tax imposed by subtitle A exceeds the excess of the sum of the amount shown as the tax by the taxpayer upon his return, if a return was made by the taxpayer and an amount was shown as the tax by the taxpayer thereon...

        In other words:

Subtitle A tax imposed...................$4,234
Amount shown on return................$4,004
Deficiency......................................$   234

        If one does NOT have "income taxes imposed by subtitle A", one can NOT have a deficiency as defined.

Subtitle A tax imposed..................$0,000
Amount shown on return...............$x,xxx
Deficiency.....................................$0,000

        As you have read in chapter 2 of this web site:
  • The tax is imposed upon "taxable income". IRC section 1.
  • "Taxable income" is "gross income" minus the deductions allowed. IRC section 63.
  • Compensation for services is listed as "gross income". IRC section 61(a)(1).
  • A "class of gross income" may include excluded income. CFR 1.861-8 (b)(1).
  • The "statutory grouping of gross income" or the "residual grouping of gross income" may include, or consist entirely of, excluded income. CFR 1.861-8 (a)(4).
  • The term exempt income means any income that is, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes.
  • A citizen's domestic compensation for labor is NOT on the list of income that is taxable.

        Therefore, the definition of deficiency can NOT apply to a Citizen's domestic compensation for labor, since subtitle A's "income" tax is only imposed upon the Citizen's foreign compensation for labor. (Foreign Earned Income.)

        The regulation under this statute says basically the same thing, with the proviso that the amount shown on the taxpayer's (missing) return shall be treated as zero.

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