This is a sample computation of the estimated TEFRA deficiency. The steps in computing the deficiency are as follows:The ordinary income or loss from Line 2 of the Revenue Agent's Report (RAR) Form 4605–A is entered.The separately stated item adjustments from Line 5 of the Form 4605–A are listed. The separately stated items that are included in the computation of dollar value are the items that would appear on the Schedule K in the categories of Income (Loss) and Deductions. The amounts from steps 1 and 2 are then totaled.The tax rate listed at the bottom of the page for the tax year at issue is entered.The total from steps 1 and 2 is multiplied by the tax rate entered in step 3.The credits at issue are entered after multiplying the proposed adjustments to basis by 10%.The total of the credits at issue are entered.The totals from steps 4 and 6 are added.To compute the revised dollars, when the case is closed, the formula is used with the exception that the amounts are taken from the Form 4605-A prepared by Appeals, usually by the TCS. Do not use the Form 4605-A prepared as part of the RAR.Use the table below to determine the percentage to use for the tax year at issue:Tax YearTax Rate Percentage1982 through 198650%198738.5% 1988 through 199033%1991 through 199331% 1994 through 200039.6%200139.1%2002 38.6%2003 through 201235%