A deficiency in tax occurs when a taxpayer's correct tax liability exceeds the taxes previously paid for that taxable year. It can be identified during an audit of the taxpayer's return and may lead to penalties.
The IRS is the United States federal government agency responsible for collecting taxes and administering the Internal Revenue Code. It ensures compliance with tax laws, investigates tax abuses, and prosecutes tax fraud.
Tax evasion is the illegal act of deliberately misrepresenting or not reporting income to reduce tax liabilities. This practice involves concealing income, inflating deductions, or using deceptive methods to evade tax obligations.
