§ 74 — Jeopardy assessment

§ 74. Jeopardy assessment.--(a) Authority for making.--If the\nadministrator believes that the assessment or collection of a deficiency\nwill be jeopardized by delay, he shall, notwithstanding the provisions\nof sections sixty-one and seventy-six, immediately assess such\ndeficiency (together with all interest, penalties and additions to tax\nprovided for by law), and notice and demand shall be made by the\nadministrator 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 sixty-one, then the administrator\nshall mail a notice under such section within sixty days after the\nmaking of the assessment.\n (c) Amount assessable before decision of administrator.--The jeopardy\nassessment may be made in respect of a deficiency greater or less than\nthat of which notice is mailed to the taxpayer and whether or not the\ntaxpayer has theretofore filed a petition with the administrator. The\nadministrator may, at any time before rendering his decision, abate such\nassessment, or any unpaid portion thereof, to the extent that he\nbelieves the assessment to be excessive in amount. The administrator may\nin his decision redetermine the entire amount of the deficiency and of\nall amounts assessed at the same time in connection therewith.\n (d) Amount assessable after decision of administrator.--If the\njeopardy assessment is made after the decision of the administrator is\nrendered, such assessment may be made only in respect of the deficiency\ndetermined by the administrator in his decision.\n (e) Expiration of right to assess.--A jeopardy assessment may not be\nmade after the decision of the administrator has become final or after\nthe taxpayer has made an an application for review of the decision of\nthe administrator.\n (f) Collection of unpaid amounts.--When a petition has been filed with\nthe administrator and when the amount which should have been assessed\nhas been determined by a decision of the administrator which has become\nfinal, then any unpaid portion, the collection of which has been stayed\nby bond, shall be collected as part of the tax upon notice and demand\nfrom the administrator, and any remaining portion of the assessment\nshall be abated. If the amount already collected exceeds the amount\ndetermined as the amount which should have been assessed, such excess\nshall be credited or refunded to the taxpayer as provided in section\nsixty-six without the filing of claim therefor. If the amount determined\nas the amount which should have been assessed is greater than the amount\nactually assessed, then the difference shall be assessed and shall be\ncollected as part of the tax upon notice and demand from the\nadministrator.\n (g) Abatement if jeopardy does not exist.--The administrator may abate\nthe jeopardy assessment if he finds that jeopardy does not exist. Such\nabatement may not be made after a decision of the administrator in\nrespect of the deficiency has been rendered or, if no petition is filed\nwith the administrator, after the expiration of the period for filing\nsuch petition. The period of limitation on the making of assessments and\nlevy or a proceeding for collection, in respect of any deficiency, shall\nbe determined as if the jeopardy assessment so abated had not been made,\nexcept that the running of such period shall in any event be suspended\nfor the period from the date of such jeopardy assessment until the\nexpiration of the tenth day after the day on which such jeopardy\nassessment 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\nadministrator, within such time as may be fixed by regulation, a bond in\nan 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 sixty-one is mailed to the taxpayer in a lesser amount, the bond\nshall, at the request of the taxpayer, be proportionately reduced.\n (i) Petition to administrator.--If the bond is given before the\ntaxpayer has filed his petition under section sixty-nine, 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 administrator which\nhas become final. If the administrator determines that the amount\nassessed is greater than the amount which should have been assessed,\nthen the bond shall, at the request of the taxpayer, be proportionately\nreduced when the decision of the administrator is rendered.\n (j) Stay of sale of seized property pending administrators\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, prior to the issuance of the\nnotice of deficiency and the expiration of the time provided in section\nsixty-nine for filing a petition with the administrator, and\n (2) if a petition is filed with the administrator (whether before or\nafter the making of such jeopardy assessment), prior to the expiration\nof the period during which the assessment of the deficiency would be\nprohibited if subdivision (a) were not applicable.\n Such property may be sold if the taxpayer consents to the sale, or if\nthe administrator 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\nsixty-four, 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 (l) Early termination of taxable year.--If the administrator finds\nthat a taxpayer designs quickly to depart from this state or to remove\nhis property therefrom, or to conceal himself or his property therein,\nor to do any other act tending to prejudice or to render wholly or\npartly ineffectual proceedings to collect the income tax for the current\nor the preceding taxable year unless such proceedings be brought without\ndelay, the administrator shall declare the taxable period for such\ntaxpayer immediately terminated, and shall cause notice of such finding\nand declaration to be given the taxpayer, together with a demand for\nimmediate payment of the tax for the taxable period so declared\nterminated and of the tax for the preceding taxable year or so much of\nsuch tax as is unpaid, whether or not the time otherwise allowed by law\nfor filing return and paying the tax has expired; and such taxes shall\nthereupon become immediately due and payable. In any proceeding brought\nto enforce payment of taxes made due and payable by virtue of the\nprovisions of this subdivision, the finding of the administrator made as\nherein provided, whether made after notice to the taxpayer or not, shall\nbe for all purposes presumptive evidence of jeopardy.\n (m) Reopening of taxable period.--Notwithstanding the termination of\nthe taxable period of the taxpayer by the administrator as provided in\nsubdivision (l), the administrator may reopen such taxable period each\ntime the taxpayer is found by the administrator to have received income,\nwithin the current taxable year, since the termination of such period. A\ntaxable period so terminated by the administrator may be reopened by the\ntaxpayer if he files with the administrator a true and accurate return\nof taxable income and credits allowed under this local law for such\ntaxable period, together with such other information as the\nadministrator may by regulations prescribe.\n (n) Furnishing of bond where taxable year is closed by the\nadministrator.--Payment of taxes shall not be enforced by any\nproceedings under the provisions of subdivision (l) prior to the\nexpiration of the time otherwise allowed for paying such taxes if the\ntaxpayer furnishes, under regulations prescribed by the administrator, a\nbond to insure the timely making of returns with respect to, and payment\nof, such taxes or any income taxes for prior years.\n