Lumenary Prep

Practice

Deficiency jurisdiction

Question 1 of 11

For the year at issue, the IRS determines that Priya's correct income tax is $52,300. Her return showed tax of $44,800. Earlier, the IRS assessed a $2,000 deficiency for the same year, which she paid. Her employer withheld $50,000 of income tax, and she received a refund attributable to over-withholding. There have been no other abatements or credits. What is the amount of the deficiency (in dollars) that the IRS may determine in a new notice of deficiency?