2006 New York Code - Jeopardy Assessments.

 
    §  11-685  Jeopardy  assessments.  1.  Authority  for  making.  If the
  commissioner of finance believes that the assessment or collection of  a
  deficiency  will  be  jeopardized  by  delay,  the  commissioner  shall,
  notwithstanding the provisions of  section  11-672  of  this  subchapter
  immediately   assess   such  deficiency  (together  with  all  interest,
  penalties and additions to tax provided for  by  law),  and  notice  and
  demand  shall  be  made  by  the commissioner of finance for the payment
  thereof.
    2. Notice of deficiency. If the jeopardy assessment is made before any
  notice in respect of the tax to which the  jeopardy  assessment  relates
  has  been  mailed  under  section  11-672  of  this subchapter, then the
  commissioner of finance shall mail a notice under  such  section  within
  sixty days after the making of the assessment.
    3.  Amount assessable before decision of the tax appeals tribunal. The
  jeopardy assessment may be made in respect of a  deficiency  greater  or
  less  than that of which notice is mailed to the taxpayer and whether or
  not the taxpayer has theretofore filed a petition with the  tax  appeals
  tribunal.  The  commissioner  of  finance  may,  at  any time before tax
  appeals tribunal renders its decision, abate  such  assessment,  or  any
  unpaid portion thereof, to the extent that the commissioner believes the
  assessment  to  be  excessive in amount. The tax appeals tribunal may in
  its decision redetermine the entire amount of the deficiency and of  all
  amounts assessed at the same time in connection therewith.
    4.  Amounts  assessable after decision of the tax appeals tribunal. If
  the jeopardy assessment is made after the decision of  the  tax  appeals
  tribunal is rendered, such assessment may be made only in respect of the
  deficiency determined by the tax appeals tribunal in its decision.
    5.  Expiration  of  right  to assess. A jeopardy assessment may not be
  made after the decision of the tax appeals tribunal has become final  or
  after the taxpayer has made an application for review of the decision of
  the tax appeals tribunal.
    6.  Collection  of unpaid amounts. When a petition has been filed with
  the tax appeals tribunal and when the  amount  which  should  have  been
  assessed  has  been determined by a decision of the tax appeals tribunal
  which has become final, then any unpaid portion, the collection of which
  has been stayed by bond, shall be collected as  part  of  the  tax  upon
  notice  and  demand  from the commissioner of finance, and any remaining
  portion of the  assessment  shall  be  abated.  If  the  amount  already
  collected  exceeds the amount determined as the amount which should have
  been assessed, such excess shall be credited or refunded to the taxpayer
  as provided in section 11-677 of this subchapter without the  filing  of
  claim  therefor.    If  the amount determined as the amount which should
  have been assessed is greater than the amount  actually  assessed,  then
  the  difference  shall be assessed and shall be collected as part of the
  tax upon notice and demand from the tax appeals tribunal.
    7. Abatement if jeopardy does not exist. The commissioner  of  finance
  may  abate  the  jeopardy  assessment  if  the  commissioner  finds that
  jeopardy does not exist. Such abatement may not be made after a decision
  of the tax appeals tribunal  in  respect  of  the  deficiency  has  been
  rendered  or,  if  no  petition  is filed with the tax appeals tribunal,
  after the expiration of the period for filing such petition. The  period
  of  limitation on the making of assessments and levy or a proceeding for
  collection, in respect of any deficiency, shall be determined as if  the
  jeopardy assessment so abated had not been made, except that the running
  of  such  period shall in any event be suspended for the period from the
  date of such jeopardy assessment until the expiration of the  tenth  day
  after the day on which such jeopardy assessment is abated.


    8.  Bond to stay collection. The collection of the whole or any amount
  of any jeopardy assessment may be stayed by filing with the commissioner
  of finance, within such time as may be fixed by regulation, a bond in an
  amount equal to the amount as to which the stay is desired,  conditioned
  upon  the  payment  of  the  amount (together with interest thereon) the
  collection of which is stayed at the time of which, but for  the  making
  of the jeopardy assessment, such amount would be due. Upon the filing of
  the  bond the collection of so much of the amount assessed as is covered
  by the bond shall be stayed. The taxpayer shall have the right to  waive
  such  stay at any time in respect of the whole or any part of the amount
  covered by the bond, and if as a result of such waiver any part  of  the
  amount  covered  by the bond is paid, then the bond shall at the request
  of the taxpayer, be proportionately  reduced.  If  any  portion  of  the
  jeopardy  assessment  is  abated,  or  if  a  notice of deficiency under
  section 11-672 of this subchapter is mailed to the taxpayer in a  lesser
  amount,   the   bond   shall,   at  the  request  of  the  taxpayer,  be
  proportionately reduced.
    9. Petition to tax appeals tribunal. If the bond is given  before  the
  taxpayer has filed its petition under section 11-680 of this subchapter,
  the  bond  shall  contain  a further condition that if a petition is not
  filed within the period provided in such section, then the  amount,  the
  collection  of  which  is stayed by the bond, will be paid on notice and
  demand at any time after the expiration of such  period,  together  with
  interest  thereon from the date of the jeopardy notice and demand to the
  date of notice and demand under this  subdivision.  The  bond  shall  be
  conditioned  upon  the payment of so much of such assessment (collection
  of which is stayed by the bond) as is not abated by a  decision  of  the
  tax appeals tribunal which has become final. If the tax appeals tribunal
  determines  that  the  amount  assessed is greater than the amount which
  should have been assessed, then the bond shall, at the  request  of  the
  taxpayer,  be  proportionately  reduced  when  the  decision  of the tax
  appeals tribunal is rendered.
    10. Stay of sale of seized property  pending  tax  appeals  tribunal's
  decision.  Where  a jeopardy assessment is made, the property seized for
  the collection of the tax shall not be sold:
    (a) if subdivision two is applicable, prior to  the  issuance  of  the
  notice  of deficiency and the expiration of the time provided in section
  11-680 of this subchapter for filing a petition  with  the  tax  appeals
  tribunal, and
    (b)  if  a  petition  is  filed with the tax appeals tribunal (whether
  before or after the making of such jeopardy assessment),  prior  to  the
  expiration  of  the period during which the assessment of the deficiency
  would be prohibited if subdivision one were not applicable.
    Such property may be sold if the taxpayer consents to the sale, or  if
  the commissioner of finance determines that the expenses of conservation
  and maintenance will greatly reduce the net proceeds, or if the property
  is perishable.
    11.  Interest. For the purpose of subdivision one of section 11-675 of
  this  subchapter,  the  last  date  prescribed  for  payment  shall   be
  determined  without  regard  to any notice and demand for payment issued
  under this section prior to the last date otherwise prescribed for  such
  payment.
    12.  Early termination of taxable year. If the commissioner of finance
  finds that a taxpayer designs quickly to remove its property  from  this
  state,  or  to  conceal  its  property  therein,  or to do any other act
  tending  to  prejudice  or  to  render  wholly  or  partly   ineffectual
  proceedings  to collect the tax for the current or the preceding taxable
  year unless such proceedings be brought without delay, the  commissioner


  of   finance   shall  declare  the  taxable  period  for  such  taxpayer
  immediately terminated, and shall  cause  notice  of  such  finding  and
  declaration  to  be  given  the  taxpayer,  together  with  a demand for
  immediate  payment  of  the  tax  for  the  taxable  period  so declared
  terminated and of the tax for the preceding taxable year so much of such
  tax as is unpaid, whether or not the time otherwise allowed by  law  for
  filing  return  and  paying  the  tax  has expired; and such taxes shall
  thereupon become immediately due and payable. In any proceeding  brought
  to  enforce  payment  of  taxes  made  due  and payable by virtue of the
  provisions of this subdivision,  the  finding  of  the  commissioner  of
  finance  made  as  herein  provided,  whether  made  after notice to the
  taxpayer or not, shall be  for  all  purposes  presumptive  evidence  of
  jeopardy.
    13.  Reopening  of  taxable period. Notwithstanding the termination of
  the taxable period of the taxpayer by the commissioner  of  finance,  as
  provided  in  subdivision twelve, the commissioner of finance may reopen
  such taxable period each time the taxpayer is found by the  commissioner
  of  finance  to  have  received income, within the current taxable year,
  since the termination of such period. A taxable period so terminated  by
  the  commissioner of finance may be reopened by the taxpayer if it files
  with the commissioner of finance a true and accurate return under any of
  the named subchapters for such taxable period, together with such  other
  information as the commissioner of finance may by regulations prescribe.
    14.   Furnishing   of  bond  where  taxable  year  is  closed  by  the
  commissioner of finance. Payment of taxes shall not be enforced  by  any
  proceedings  under  the  provisions  of  subdivision twelve prior to the
  expiration of the time otherwise allowed for paying such  taxes  if  the
  taxpayer  furnishes, under regulations prescribed by the commissioner of
  finance, a bond to insure the timely making of returns with respect  to,
  and payment of, such taxes or any taxes for prior years.