What Is a Notice of Assessment (NOA)?

A Notice of Assessment (NOA) is an official communication from a tax authority, issued after processing a filed tax return. This document confirms the assessment outcome, whether it results in a refund, a balance due, or no change to the taxpayer’s original submission. It represents the tax authority’s final determination of a taxpayer’s tax obligations for a specific tax year.

Understanding Your Notice of Assessment

In the United States, the Internal Revenue Service (IRS) communicates assessment outcomes through various notices, letters, or tax transcripts. Unlike some other countries, the IRS does not issue a universal “Notice of Assessment” to every taxpayer after processing their return. These documents inform taxpayers of their tax liability, refund status, or any modifications made to their filed return.

IRS notices, such as CP or LTR series letters, are sent if there is a balance due, a change in refund amount, a question about the return, a need to verify identity, or if the IRS has corrected the return. These notices detail proposed changes, the reasons for them, and any resulting tax, penalties, or interest.

Tax transcripts, which taxpayers can request, provide a summary of tax return information and account activity. A Tax Return Transcript shows most line items from the original Form 1040, 1040A, or 1040EZ as filed, including adjusted gross income (AGI). This transcript is often used for loan applications, such as mortgages or student loans, to verify income.

A Tax Account Transcript provides basic data like filing status, AGI, taxable income, and payment type, also showing any changes or amendments made after the original return was filed. This transcript is helpful for confirming estimated tax payments were applied. The Wages and Income Transcript focuses on income sources, providing a detailed breakdown from W-2s, 1099s, and 1098s reported to the IRS.

Receiving and Responding to Your Notice of Assessment

Taxpayers generally receive IRS notices or letters by mail. For electronically filed returns, taxpayers can check the status of their refund or return using the IRS “Where’s My Refund?” tool. Electronically filed Form 1040 returns are typically processed within 21 days, while paper-filed returns may take four weeks or more due to manual processing.

Upon receiving an IRS notice or letter, review it carefully and keep it for your records. Compare the information in the notice against your own records and the tax return you submitted. If the notice indicates changes or discrepancies, understand the explanations provided by the IRS for these adjustments.

If you agree with the notice, take any requested action, such as paying a balance due by the specified date. Even if the full amount cannot be paid, making a partial payment can reduce potential interest and penalty charges. If a refund is due, it will be issued via direct deposit or by paper check after approval.

If you disagree with an IRS assessment or proposed change, you have the right to dispute it. The notice will provide instructions on how to proceed, including a due date for your response. Disputing an assessment involves contacting the IRS, explaining your disagreement, and providing supporting documentation. This process may lead to an appeals conference with an independent IRS office. Retain all tax-related documents, including notices and transcripts, for future reference.