When the amount of a taxpayer's federal net taxable income reported on the federal return is increased by the Internal Revenue Service (IRS) or any change is required by the IRS in the method of reporting, accounting for, or treatment of particular income, the taxpayer shall report to the Revenue Administration Division the increase of federal net taxable income or the nature of the change within 90 days after the IRS has issued its final determination. A disposition of an assessment by the IRS by way of abatement, settlement, or compromise may not be construed as an abatement, settlement, or compromise of the taxpayer's liability to this State. The report filed with the Comptroller's Office shall consist of: A complete copy of the federal audit including any exhibits attached to it; and The taxpayer's acceptance of the IRS final determination or the taxpayer's grounds for objection to the IRS determination. If the taxpayer fails to file the report within 90 days, the Comptroller may make an assessment under Tax-General Article, §13-1101(b), Annotated Code of Maryland. If a taxpayer files a timely report, the Comptroller shall make an assessment within 1 year after receipt of the report as provided by Tax-General Article, §13-1101(c), Annotated Code of Maryland. After receipt of the federal audit report, the Comptroller shall re-compute the amount of tax due on the Maryland return and mail a report of income tax audit changes to the taxpayer's last known address. A taxpayer may appeal an assessment by applying for a hearing as provided under COMAR 03.01.01.04.