(A) Finance: The amount of a debt that remains after the security for the loan has been sold and does not cover the entire balance of the loan. (B) Tax: The amount that the IRS determines is owed that is in excess of what the taxpayer filed as owed.
Law Dictionary – Alternative Legal Definition
A lack, shortage, or insufficiency. The difference between the total amount of the debt or payment meant to be secured by a mortgage and that realized on foreclosure and sale when less than the total. A judgment or decree for the amount of such deficiency is called a “deficiency Judgment” or “decree.” Goldsmith v. Brown, 35 Barb. (N. Y.) 492. Deficiency bill. In parliamentary practice, an appropriation bill covering items of expense omitted from the general appropriation bill or bills, or for which insufficient appropriations were made. If intended to cover a variety of such items, it is commonly called a “general deficiency bill;” if intended to make provision for expenses which must be met immediately, or which cannot wait the ordinary course of the general appropriation bills, it is called an “urgent deficiency bill.” Denciente uno sanguine non potest esse hares. 3 Coke, 41. One blood being wanting, he cannot be heir.