2007 California Revenue and Taxation Code Article 5. Jeopardy Determinations

CA Codes (rtc:43350-43352)

43350.  If the board believes that the collection of any amount of
tax will be jeopardized by delay, it shall thereupon make a
determination of the amount of tax due, noting that fact upon the
determination, and the amount of tax shall be immediately due and
payable.  If the amount of the tax, interest, and penalty specified
in the jeopardy determination is not paid, or a petition for
redetermination is not filed, within 10 days after the service upon
the taxpayer of notice of the determination, the determination
becomes final, and the delinquency penalty and interest provided in
Section 43155 shall attach to the amount of tax specified therein.




43351.  The taxpayer against whom a jeopardy determination is made
may file a petition for the redetermination thereof, pursuant to
Article 4 (commencing with Section 43301), with the board within 10
days after the service upon the taxpayer of notice of the
determination, but he or she shall, within the 10-day period, deposit
with the board such security as it deems necessary to insure
compliance with the provisions of this part.  The security may be
sold by the board at public sale if it becomes necessary in order to
recover any amount due under this part.  Notice of the sale may be
served upon the person who deposited the security personally or by
mail in the same manner as prescribed for service of notice by
Section 43201.  Upon any such sale, the surplus, if any, above the
amount due under this part shall be returned to the person who
deposited the security.


43352.  In accordance with such rules and regulations as the board
may prescribe, the person against whom a jeopardy determination is
made may apply for an administrative hearing for one or more of the
following purposes:
   (a) To establish that the determination is excessive.
   (b) To establish that the sale of property that may be seized
after issuance of the jeopardy determination, or any part thereof,
shall be delayed pending the administrative hearing because the sale
would result in irreparable injury to the person.
   (c) To request the release of all or a part of the property to the
person.
   (d) To request a stay of collection activities.
   The application shall be filed within 30 days after service of the
notice of jeopardy determination and shall be in writing and state
the specific factual and legal grounds upon which it is founded.  The
person shall not be required to post any security in order to file
the application and to obtain the hearing.  However, if the person
does not deposit, within the 10-day period prescribed in Section
43351, such security as the board may deem necessary to ensure
compliance with this part, the filing of the application shall not
operate as a stay of collection activities, except sale of property
seized after issuance of the jeopardy determination.  Upon a showing
of good cause for failure to file a timely application for
administrative hearing, the board may allow a filing of the
application and grant the person an administrative hearing.  The
filing of an application pursuant to this section shall not affect
the provisions of Section 43350 relating to the finality date of the
determination or to penalty or interest.