notice of deficiency

Primary tabs

A notice of deficiency is a notice sent by a tax administrator to a taxpayer by mails if upon examination, the administrator determines that there is a deficiency of income tax in the taxpayer’s tax return. A notice of deficiency usually includes information about the taxpayer's right to contact a local office of the taxpayer advocate and the location and phone number of the appropriate office.

[Last updated in November of 2020 by the Wex Definitions Team]