§ 85 — Jeopardy assessment

New York § 85

• Jurisdiction: New York
• Law GCM: General City Model 772/66
• Part 6: (corporate Tax Procedure and Administration)

Text

§ 85. Jeopardy assessment. 1. 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 seventy-two immediately assess such deficiency (together with\nall interest, penalties and additions to tax provided for by law), and\nnotice and demand shall be made by the director of finance for the\npayment thereof.\n 2. 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 seventy-two, then the director of\nfinance shall mail a notice under such section within sixty days after\nthe making of the assessment.\n 3. 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 theretofore 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 4. Amounts 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 5. 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 6. 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 seventy-seven without the filing of claim\ntherefor. If the amount determined as the amount which should have been\nassessed 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 7. 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 8. Bond to stay collection.--The collection of the whole or any amount\nof any jeopardy assessment may be stayed by filing with the director of\nfinance, within such time as may be fixed by regulation, a bond in an\namount equal to the amount as to which the stay is desired, conditioned\nupon the payment of the amount (together with interest thereon) the\ncollection of which is stayed at the time at which, but for the making\nof the jeopardy assessment, such amount would be due. Upon the filing of\nthe bond the collection of so much of the amount assessed as is covered\nby the bond shall be stayed. The taxpayer shall have the right to waive\nsuch stay at any time in respect of the whole or any part of the amount\ncovered by the bond, and if as a result of such waiver any part of the\namount covered by the bond is paid, then the bond shall at the request\nof the taxpayer, be proportionately reduced. If any portion of the\njeopardy assessment is abated, or if a notice of deficiency under\nsection seventy-two is mailed to the taxpayer in a lesser amount, the\nbond shall, at the request of the taxpayer, be proportionately reduced.\n 9. Petition to director of finance.--If the bond is given before the\ntaxpayer has filed its petition under section eighty, the bond shall\ncontain a further condition that if a petition is not filed within the\nperiod provided in such section, then the amount, the collection of\nwhich is stayed by the bond, will be paid on notice and demand at any\ntime after the expiration of such period, together with interest thereon\nfrom the date of the jeopardy notice and demand to the date of notice\nand demand under this subdivision. The bond shall be conditioned upon\nthe payment of so much of such assessment (collection of which is stayed\nby the bond) as is not abated by a decision of the director of finance\nwhich has become final. If the director of finance determines that the\namount assessed is greater than the amount which should have been\nassessed, then the bond shall, at the request of the taxpayer, be\nproportionately reduced when the decision of the director of finance is\nrendered.\n 10. Stay of sale of seized property pending director's\ndecision.--Where a jeopardy assessment is made, the property seized for\nthe collection of the tax shall not be sold--\n (a) if subdivision two is applicable, prior to the issuance of the\nnotice of deficiency and the expiration of the time provided in section\neighty for filing a petition with the director of finance, and\n (b) 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 one 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 11. Interest.--For the purpose of subdivision one of section\nseventy-five, the last date prescribed for payment shall be determined\nwithout regard to any notice and demand for payment issued under this\nsection prior to the last date otherwise prescribed for such payment.\n 12. Early termination of taxable year.--If the director of finance\nfinds that a taxpayer designs quickly to remove its property from this\nstate, or to conceal its property therein, or to do any other act\ntending to prejudice or to render wholly or partly ineffectual\nproceedings to collect the tax for the current or the preceding taxable\nyear unless such proceedings be brought without delay, the director of\nfinance shall declare the taxable period for such taxpayer immediately\nterminated, and shall cause notice of such finding and declaration to be\ngiven the taxpayer, together with a demand for immediate payment of the\ntax for the taxable period so declared terminated and of the tax for the\npreceding taxable year or so much of such tax as is unpaid, whether or\nnot the time otherwise allowed by law for filing return and paying the\ntax has expired; and such taxes shall thereupon become immediately due\nand payable. If any proceeding brought to enforce payment of taxes made\ndue and payable by virtue of the provisions of this subdivision, the\nfinding of the director of finance made as herein provided, whether made\nafter notice to the taxpayer or not, shall be for all purposes\npresumptive evidence of jeopardy.\n 13. Reopening of taxable period.-- Notwithstanding the termination of\nthe taxable period of the taxpayer by the director of finance, as\nprovided in subdivision twelve, 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 it files with the\ndirector of finance a true and accurate return under any of the named\nparts for such taxable period, together with such other information as\nthe director of finance may by regulations prescribe.\n 14. 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 twelve prior to the expiration of\nthe time otherwise allowed for paying such taxes if the taxpayer\nfurnishes, under regulations prescribed by the director of finance, a\nbond to insure the timely making of returns with respect to, and payment\nof, such taxes or any taxes for prior years.\n