2006 New York Code - Jeopardy Assessment.

 
    §  11-534  Jeopardy  assessment.  (a)  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 provision of sections  11-521  and  11-536  of  this
  chapter,  and  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.
    (b) Notice of deficiency. If the jeopardy assessment  is  made  before
  any  notice  in  respect  to  the  tax  to which the jeopardy assessment
  relates has been mailed under section 11-521 of this chapter,  then  the
  commissioner  of  finance  shall mail a notice under such section within
  sixty days after the making of the assessment.
    (c) Amount assessable before decision of  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 heretofore filed a petition with the tax appeals
  tribunal. The commissioner of finance may, at any time  before  the  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.
    (d) Amount assessable after decision of 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.
    (e) 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.
    (f) 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  11-526  of this chapter 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 commissioner of finance.
    (g) 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.


    (h) 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 at 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 or deficiency under
  section 11-521 of this chapter is mailed to the  taxpayer  in  a  lesser
  amount,   the   bond   shall,   at  the  request  of  the  taxpayer,  be
  proportionately reduced.
    (i) Petition to tax appeals tribunal. If the bond is given before  the
  taxpayer  has  filed  his  or  her petition under section 11-529 of this
  chapter, 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.
    (j)  Stay  of  sale  of  seized  property pending tax appeals tribunal
  decision. Where a jeopardy assessment is made, the property  seized  for
  the collection of the tax shall not be sold:
    (1)  if  subdivision  (b)  of this section is applicable, prior to the
  issuance of the notice of deficiency and  the  expiration  of  the  time
  provided  in  section  11-529 of this chapter for filing a petition with
  the tax appeals tribunal, and
    (2) 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  (a)  of  this  section  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.
    (k)  Interest. For the purpose of subdivision (a) of section 11-524 of
  this chapter, 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.
    (l) Early termination of taxable year. If the commissioner of  finance
  finds  that  a  taxpayer designs quickly to depart from this state or to
  remove his or her property therefrom, or to conceal himself  or  herself
  or  his  or  her  property  therein,  or  to do any other act tending to
  prejudice or to render  wholly  or  partly  ineffectual  proceedings  to
  collect  the  income  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  to  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 or 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.
    (m)  Reopening  of  taxable period. Notwithstanding the termination of
  the taxable period of the taxpayer by the  commissioner  of  finance  as
  provided in subdivision (l) of this section, 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  the taxpayer files with the commissioner of finance a true
  and accurate return of taxable income and  credits  allowed  under  this
  chapter  for taxable period, together with such other information as the
  commissioner of finance may by regulations prescribe.
    (n)  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  (1)  of  this  section
  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  under  this
  chapter for prior years.