An assessment is a tax liability financial transaction associated with an obligation and represents the legal presentation of a tax liability to a taxpayer. There are different types of assessments, based on how and why the liability was created, and the assessment type can apply differentiated processing rules, such as different penalty and interest calculation rules or different collections rules.
Most filing periods only have one assessment created that captures any applicable penalty, interest, or fees. However, it is possible for additional assessments to be created within a filing period.
Return and bill based tax types differ in how assessments get created and processed. The following sections discuss these concepts.
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