There are two ways that you can owe tax.
The first way is to complete a self-filed tax return and not pay tax that is shown to be due or to make an error on the return. For example, you may have used the wrong tax rate.
The second way is through the Department’s issuing an assessment. An assessment could be the result of an audit or other compliance activities.
In some cases, if you determine that you have either not paid or underpaid tax, you may be eligible for a managed audit. Managed audits allow you to work with the Department to establish the amount of tax that you owe and pay it without penalty and interest. For more information on managed audits When the Department believes that you owe tax, it attempts to resolve the liability with you. If any questions about the tax liability cannot be resolved, the Department sends an assessment. The Taxpayer Bill of Rights ensures that you have a right to a full explanation of the assessment and notice of remedies available to challenge the assessment. You also have a right to a full explanation of the collection actions that may be taken.