A Notice of Assessment (NOA) is an official document issued by a tax authority to taxpayers after they file their tax returns. The Notice of Assessment serves several purposes:

Confirmation of Tax Liability: The NOA confirms the amount of tax payable by the taxpayers, based on the information provided in their tax returns. It outlines the total taxable income, deductions claimed, tax credits, and any taxes owed or refunds due.

Verification of Compliance: The NOA verifies that the taxpayer has complied with their tax obligations for the year. It indicates that the tax return has been accepted as filed, or adjustments have been made by the tax authority.

Explanation of Calculations: The NOA shows how the tax liability was calculated, including the tax rates applied, deductions claimed, and any credits or rebates received.

Payment Instructions: If the taxpayer owes taxes, the NOA includes instructions on how to make payment, including deadlines and acceptable payment methods. Conversely, if a refund is due, the NOA outlines the process for receiving the refund.

Appeal Rights: In some jurisdictions, the NOA may also include information on the taxpayer’s rights to appeal the assessment if they disagree with the tax authority’s decision or believe there are errors in the assessment.