Notice of Assessment

A notice of assessment is mailed to taxpayers notifying them of the proposed amount they owe. You will receive a notice of tax assessment if an error is corrected that increases the amount you owe or reduces the payments and credits changing the return from a refund to a balance due or if an audit adjustment by the Department results in additional tax due. If you have questions about your notice of tax assessment, you may call toll-free at 1-877-252-3252 or you may write to the address on your notice explaining why you disagree. If you agree with the assessment, you must send full payment within 45 days from the date on the notice. If you wish to contest the assessment, you must request that the Department review the proposed assessment. The request for review must be made in writing and filed with the Department within 45 days from the date the notice was mailed, if mailed by the Department, or from the date the notice was delivered, if delivered in person by a Department employee. You should also state the reasons why you disagree with the assessment. You may request a review by completing and mailing either Form NC-242 or a letter containing the information requested on Form NC-242. An assessment for tax shown due on the return but not paid or the application of a refund against debts owed to State or local agencies or to the Internal Revenue Service is not subject to review.

You may pay your assessment balance online using the Department’s Bill and Notice Payment web application. Payments can be made online by bank draft or credit or debit card using MasterCard or Visa. You can also pay by mailing a personal check or money order to the North Carolina Department of Revenue, Post Office Box 25000, Raleigh, North Carolina, 27640-0640, or you can visit your local service center to pay the balance. The Department will not accept a check, money order, or cashier’s check unless it is drawn on a U. S. (domestic) bank and the funds are payable in U.S. dollars. Make your check or money order payable to N.C. Department of Revenue. Include with the payment your name, social security number, the type of tax and the tax year the payment is for. Also include the bottom portion of your assessment notice with your payment to make sure your account is properly credited.

The Department of Revenue has 3 years from the due date of your return or the date you actually filed, whichever is later, to send a notice of assessment explaining the amount you owe the Department and why. North Carolina law also allows the Department 3 years from the date the IRS notifies the Department of changes made to your federal return to assess you for the additional the State tax you may owe. However, if you file an amended return reporting changes made by the IRS within six months of being notified of the changes by the IRS, the Department has only 1 year from the date you file an amended return or 3 years from the due date of your return or the date you actually filed, whichever is later, to send a notice of assessment for any additional amounts owed based on your amended return filed to report changes made by IRS. Before calling or writing the Department, please review your tax return including all wage and tax statements and other tax records to determine if you agree with the assessment. If you agree with the notice of tax assessment, send your payment within 45 days of the date on the notice so your account can be closed.