§ 142 — Jeopardy assessment

New York § 142

• Jurisdiction: New York
• Law GCM: General City Model 772/66

Text

§ 142. Jeopardy assessment. (a) Authority for making.--If the director\nof finance believes that the assessment or collection of a deficiency\nwill be jeopardized by delay, he shall, notwithstanding the provisions\nof section one hundred twenty-nine and one hundred forty-four, and\nimmediately assess such deficiency (together with all interest,\npenalties and additions to tax provided for by law), and notice and\ndemand shall be made by the director of finance for the payment thereof.\n (b) Notice of deficiency.--If the jeopardy assessment is made before\nany notice in respect of the tax to which the jeopardy assessment\nrelates has been mailed under section one hundred twenty-nine, then the\ndirector of finance shall mail a notice under such section within sixty\ndays after the making of the assessment.\n (c) Amount assessable before decision of director of finance.--The\njeopardy assessment may be made in respect of a deficiency greater or\nless than that of which notice is mailed to the taxpayer and whether or\nnot the taxpayer has heretofore filed a petition with the director of\nfinance. The director of finance may, at any time before rendering his\ndecision, abate such assessment, or any unpaid portion thereof, to the\nextent that he believes the assessment to be excessive in amount. The\ndirector of finance may in his decision redetermine the entire amount of\nthe deficiency and of all amounts assessed at the same time in\nconnection therewith.\n (d) Amount assessable after decision of director of finance.--If the\njeopardy assessment is made after the decision of the director of\nfinance is rendered, such assessment may be made only in respect of the\ndeficiency determined by the director of finance in his decision.\n (e) Expiration of right to assess.--A jeopardy assessment may not be\nmade after the decision of the director of finance has become final or\nafter the taxpayer has made an application for review of the decision of\nthe director of finance.\n (f) Collection of unpaid amounts.--When a petition has been filed with\nthe director of finance and when the amount which should have been\nassessed has been determined by a decision of the director of finance\nwhich has become final, then any unpaid portion, the collection of which\nhas been stayed by bond, shall be collected as part of the tax upon\nnotice and demand from the director of finance, and any remaining\nportion of the assessment shall be abated. If the amount already\ncollected exceeds the amount determined as the amount which should have\nbeen assessed, such excess shall be credited or refunded to the taxpayer\nas provided in section one hundred thirty-four without the filing of\nclaim therefor. If the amount determined as the amount which should have\nbeen assessed is greater than the amount actually assessed, then the\ndifference shall be assessed and shall be collected as part of the tax\nupon notice and demand from the director of finance.\n (g) Abatement if jeopardy does not exist.--The director of finance may\nabate the jeopardy assessment if he finds that jeopardy does not exist.\nSuch abatement may not be made after a decision of the director of\nfinance in respect of the deficiency has been rendered or, if no\npetition is filed with the director of finance, after the expiration of\nthe period for filing such petition. The period of limitation on the\nmaking of assessments and levy or a proceeding for collection, in\nrespect of any deficiency, shall be determined as if the jeopardy\nassessment so abated had not been made, except that the running of such\nperiod shall in any event be suspended for the period from the date of\nsuch jeopardy assessment until the expiration of the tenth day after the\nday on which such jeopardy assessment is abated.\n (h) Bond to stay collection.--The collection of the whole or any\namount of any jeopardy assessment may be stayed by filing with the\ndirector of finance, within such time as may be fixed by regulation, a\nbond in an amount equal to the amount as to which the stay is desired,\nconditioned upon the payment of the amount (together with interest\nthereon) the collection of which is stayed at the time at which, but for\nthe making of the jeopardy assessment, such amount would be due. Upon\nthe filing of the bond the collection of so much of the amount assessed\nas is covered by the bond shall be stayed. The taxpayer shall have the\nright to waive such stay at any time in respect of the whole or any part\nof the amount covered by the bond, and if as a result of such waiver any\npart of the amount covered by the bond is paid, then the bond shall at\nthe request of the taxpayer, be proportionately reduced. If any portion\nof the jeopardy assessment is abated, or if a notice of deficiency under\nsection one hundred twenty-nine is mailed to the taxpayer in a lesser\namount, the bond shall, at the request of the taxpayer, be\nproportionately reduced.\n (i) Petition to director of finance.--If the bond is given before the\ntaxpayer has filed his petition under section one hundred thirty-seven,\nthe bond shall contain a further condition that if a petition is not\nfiled within the period provided in such section, then the amount, the\ncollection of which is stayed by the bond, will be paid on notice and\ndemand at any time after the expiration of such period, together with\ninterest thereon from the date of the jeopardy notice and demand to the\ndate of notice and demand under this subdivision. The bond shall be\nconditioned upon the payment of so much of such assessment (collection\nof which is stayed by the bond) as is not abated by a decision of the\ndirector of finance which has become final. If the director of finance\ndetermines that the amount assessed is greater than the amount which\nshould have been assessed, then the bond shall, at the request of the\ntaxpayer, be proportionately reduced when the decision of the director\nof finance is rendered.\n (j) Stay of sale of seized property pending director of finance\ndecision.--Where a jeopardy assessment is made, the property seized for\nthe collection of the tax shall not be sold--\n (1) if subdivision (b) is applicable, pior to the issuance of the\nnotice of deficiency and the expiration of the time provided in section\none hundred thirty-seven for filing a petition with the director of\nfinance, and\n (2) if a petition is filed with the director of finance (whether\nbefore or after the making of such jeopardy assessment), prior to the\nexpiration of the period during which the assessment of the deficiency\nwould be prohibited if subdivision (a) were not applicable.\n Such property may be sold if the taxpayer consents to the sale, or if\nthe director of finance determines that the expenses of conservation and\nmaintenance will greatly reduce the net proceeds, or if the property is\nperishable.\n (k) Interest.--For the purpose of subdivision (a) of section one\nhundred thirty-two, the last date prescribed for payment shall be\ndetermined without regard to any notice and demand for payment issued\nunder this section prior to the last date otherwise prescribed for such\npayment.\n (l) Early termination of taxable year.--If the director of finance\nfinds that a taxpayer designs quickly to depart from this state or to\nremove his property therefrom, or to conceal himself or his property\ntherein, or to do any other act tending to prejudice or to render wholly\nor partly ineffectual proceedings to collect the income tax for the\ncurrent or the preceeding taxable year unless such proceedings be\nbrought without delay, the director of finance shall declare the taxable\nperiod for such taxpayer immediately terminated, and shall cause notice\nof such finding and declaration to be given the taxpayer, together with\na demand for immediate payment of the tax for the taxable period so\ndeclared terminated and of the tax for the preceeding taxable year or so\nmuch of such tax as is unpaid, whether or not the time otherwise allowed\nby law for filing return and paying the tax has expired; and such taxes\nshall thereupon become immediately due and payable. In any proceeding\nbrought to enforce payment of taxes made due and payable by virtue of\nthe provisions of this subdivision, the finding of the director of\nfinance made as herein provided, whether made after notice to the\ntaxpayer or not, shall be for all purposes presumptive evidence of\njeopardy.\n (m) Reopening of taxable period.--Notwithstanding the termination of\nthe taxable period of the taxpayer by the director of finance as\nprovided in subdivision (l), the director of finance may reopen such\ntaxable period each time the taxpayer is found by the director of\nfinance to have received income, within the current taxable year, since\nthe termination of such period. A taxable period so terminated by the\ndirector of finance may be reopened by the taxpayer if he files with the\ndirector of finance a true and accurate return of taxable income and\ncredits allowed under this title for such taxable period, together with\nsuch other information as the director of finance may by regulations\nprescribe.\n (n) Furnishing of bond where taxable year is closed by the director of\nfinance.--Payment of taxes shall not be enforced by any proceedings\nunder the provisions of subdivision (1) prior to the expiration of the\ntime otherwise allowed for paying such taxes if the taxpayer furnishes,\nunder regulations prescribed by the director of finance, a bond to\ninsure the timely making of returns with respect to, and payment of,\nsuch taxes or any taxes under this title for prior years.\n