An assessment is a determination by a government agency that you owe tax. In general, an assessment must be made within 3 years from the date the tax return was filed. In the case of a false return, a willful attempt to evade tax, failure to file a return, or pursuant to agreement between you and the government agency, the assessment can be made at any time. Assessments can apply to any form of your property including bank accounts, investments, businesses, art collections, and real property.
Common Assessments
For the general, employed public, the most common assessments you will encounter are property assessments. This assessment is conducted by the county property assessor and involves reviewing the values of homes in your neighborhood and the overall condition of your property. Rarely, the assessor may wish to inspect the interior of your home as well. Property assessments can be appealed if the assessor’s conclusion seems inaccurate.
Business owners are too often familiar with corporate assessments. This form of assessment is basically a type of audit where either the state or federal government requests to review your businesses bookkeeping and overall value. This process is especially important for publicly held corporations when the public is invested in the business through stocks and bonds.
Additional assessments may be requested by the government for citizens with large amounts of capital assets. Capital assets are items of high value whose value will typically increase over time. Examples of capital assets include artwork, real property, classical cars, and antiques. Capital asset collections will typically not produce red flags unless the assets are bought and sold and reported on taxes.
Getting Help
If you need assessment help, if you are in the process of scheduling an appraisal of your property or if you wish to appeal an inaccurate appraisal, contact a tax attorney for advice on helping the appraisal run smoothly.