Tax Dictionary – Assessment
Assessment is the statutorily required recording of the tax liability. Assessment is made by recording the taxpayer’s name, address, and tax liability.
More from H&R Block
When you file your tax return, the IRS calculates the amount of taxes due (if you owe) and assesses (or records) the tax liability to your tax account. The IRS can also assess additional tax, penalties and interest as a result of an error on your tax return, through an audit, or through a CP2000 notice. After an audit or when a CP2000 notice is sent, the IRS proposes an increase in tax and you have the opportunity to dispute the increase in taxes. If you do not dispute the increase or your appeal is denied, the IRS will issue a Statutory Notice of Deficiency. 90 days after the Statutory Notice of Deficiency is issued, if you do not file a petition in U.S. Tax Court, the IRS will assess the tax (record it on your tax account) and send you a tax bill.
At the end of an audit, the IRS will provide a report showing audit adjustments. Read the IRS definition and get more insight from the experts at H&R Block.
Learn about the types of IRS transcripts and how you can use them to view information about your IRS account, income sources, and tax return history.
If you receive $10 or more in dividends in a year, you will receive a Form 1099-DIV. Learn more from the tax experts at H&R Block.
You have not taken the required minimum distribution from your IRA. Learn more about IRS letter 5759C from the tax experts at H&R Block.