KRS 131.150: Jeopardy assessments.

(1) When the Department of Revenue reasonably believes that any taxpayer has

withdrawn from the state or concealed his assets or a material part thereof so as to

hinder or evade the assessment or collection of taxes, or has desisted from any

taxable activity i n the state, or has become domiciled elsewhere, or has departed

from this state with fraudulent intent to hinder or evade the assessment or collection

of taxes, or has done any other act tending to render partly or wholly ineffective

proceedings to assess or collect any such taxes, or contemplates doing any of these

acts in the immediate future, or that any tax claim for any other reason is being

endangered, such tax liability shall become due and payable immediately upon

assessment or determination of the amount of taxes due, as authorized in this

section.

(2) Under any of the circumstances set out in subsection (1) of this section, the

department may make a tentative assessment or determination of the taxes due, and

may proceed immediately to bring garnish ment, attachment or any other legal

proceedings to collect the taxes so assessed or determined to be due.

Notwithstanding the provisions of KRS 131.180(1), if the tax so assessed is due to

the failure of the taxpayer to file a required tax return a minimum penalty of one

hundred dollars ($100) shall be assessed unless the taxpayer demonstrates that the

failure to file was due to reasonable cause as defined in KRS 131.010(9). This

penalty shall be applicable whether or not any tax is determined to be due on a

subsequently filed return or if the subsequently filed return results in a refund. No

bond shall be required of the department in such proceedings. The taxpayer may

stay legal proceedings by filing a bond in an amount sufficient in the opinion of the

department to cover the taxes, penalties, interest, and costs. If no legal proceedings

have been instituted, the department may require a bond adequate to cover all taxes,

penalties, and interest. On making bond, exception to the assessment or

determination of tax liability may be filed in the same manner and time as provided

in KRS 131.110. If no exceptions are filed to the tentative assessment or

determination, it shall become final.

(3) The department may require any such taxpayer to file with it forthwith the reports

required by law or regulation, or any additional reports or other information

necessary to assess the property or determine the amount of tax due.

(4) If the department fails to exercise the authority conferred by this section, such

taxpayer shall report and pay all taxes due as otherwise provided by law.