Taxpayer Remedies

Question 1

What are the 5 remedies a taxpayer can try utilizing once they get a notice of assessment from an audit?

Answer 1

• Protest the notice prior to payment
• Pay tax and then file refund claim
• File suit in court
• Write to the state and request that they issue a letter ruling
• Request any info that might help your case (the Freedom of Information Act allows anybody to access info maintained by the gov.)

Question 2

What is an assessment?

Answer 2

A taxing authority’s formal assertion that the taxpayer to whom it is issued owes a stated amount of tax, interest, and/or penalty

Question 3

What is a determination?

Answer 3

A formal notification of assessment or resolution of a taxpayer objection to an assessment

Question 4

What is an estimate assessment?

Answer 4

An assessment issued when the taxpayer, has not provided adequate records to determine its taxability for the audit.

Question 5

What is a jeopardy assessment?

Answer 5

An assessment issued without the usual review procedure when a jurisdiction believes that a collection of an amount due would be jeopardized by delay.

Question 6

What is an exhaustion doctrine and what are the 3 benefits of it?

Answer 6

• A legal requirement that a person pursue relief through an administrative process before applying to a court.
• Gives the state an opportunity to correct any errors in their assessment.
• Allows the state to consider the taxpayer’s arguments before a court does.
• Helps to ensure that the taxpayer has exhausted all possible remedies before they go to court.