CODIFICATION OF INTERNAL REVENUE LAWS Part IV-Supplemental Provisions SUPPLEMENT A-ASSESSMENT AND COLLECTION OF DEFICIENCIES SEC. 870. DEFINITION OF DEFICIENCY. As used in this subchapter in respect of the tax imposed by this subchapter the term "deficiency" means- (1) The amount by which the tax imposed by this subchapter exceeds the amount shown as the tax by the executor upon his return; but the amount so shown on the return shall first be increased by the amounts previously assessed (or collected without assessment) as a deficiency, and decreased by the amounts previously abated, refunded, or otherwise repaid in respect of such tax; or (2) If no amount is shown as the tax by the executor upon his return, or if no return is made by the executor, then the amount by which the tax exceeds the amounts previously assessed (or collected without assessment) as a deficiency; but such amounts previously assessed, or collected without assessment, shall first be decreased by the amounts previously abated, refunded, or otherwise repaid in respect of such tax. SEC. 871. PROCEDURE IN GENERAL. (a) (1) PETITION TO BOARD OF TAX APPEALS. -I f the Commissioner determines that there is a deficiency in respect of the tax imposed by this subchapter, the Commissioner is authorized to send notice of such deficiency to the executor by registered mail. Within 90 days after such notice is mailed (not counting Sunday or a legal holiday in the District of Columbia as the ninetieth day), the executor may file a petition with the Board of Tax Appeals for a redetermination of the deficiency. No assessment of a deficiency in respect of the tax im- posed by this subchapter and no distraint or proceeding in court for its collection shall be made, begun, or prosecuted until such notice has been mailed to the executor, nor until the expiration of such 90-day period, nor, if a petition has been filed with the Board, until the decision of the Board has become final. Notwithstanding the provi- sions of section 3653 (a) the making of such assessment or the begin- ning of such proceeding or distraint during the time such prohibition is in force may be enjoined by a proceeding in the proper court. (2) CROSS REFERENCES. - For exceptions to the restrictions imposed by this subsection see- Subsection (d) of this section, relating to waivers by the executor; Subsection (f) of this section, relating to notifications of mathematical errors appearing upon the face of the return. Section 872, relating to jeopardy assessments; and Section 1145, relating to assessment or collection of the amount of the deficiency determined by the Board pending court review. (b) COLLECTION OF DEFICIENCY FOUND BY BOARD. -I f the executor files a petition with the Board, the entire amount redetermined as the deficiency by the decision of the Board which has become final shall be assessed and shall be paid upon notice and demand from the collector. No part of the amount determined as a deficiency by the Commissioner but disallowed as such by the decision of the Board which has become final shall be assessed or be collected by distraint or by proceeding in court with or without assessment. (c) FAILURE TO FILE PEr'TION. - I f the executor does not file a petition with the Board within the time prescribed in subsection (a) the deficiency, notice of which has been mailed to the executor, shall be assessed, and shall be paid upon notice and demand from the collector. (d) WAIVER OF RESTRICTIONS. -The executor shall at any time have the right, by a signed notice in writing filed with the Commissioner, to waive the restrictions provided in subsection (a) on the assessment and collection of the whole or any part of the deficiency. 132
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