N.Y. General City Law art. 2-D, § 74: Jeopardy assessment

§ 74. Jeopardy assessment.--(a) Authority for making.--If the

administrator believes that the assessment or collection of a deficiency

will be jeopardized by delay, he shall, notwithstanding the provisions

of sections sixty-one and seventy-six, 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

administrator for the payment thereof.

(b) 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 sixty-one, then the administrator

shall mail a notice under such section within sixty days after the

making of the assessment.

(c) Amount assessable before decision of administrator.--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 administrator. The

administrator may, at any time before rendering his decision, abate such

assessment, or any unpaid portion thereof, to the extent that he

believes the assessment to be excessive in amount. The administrator may

in his 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 administrator.--If the

jeopardy assessment is made after the decision of the administrator is

rendered, such assessment may be made only in respect of the deficiency

determined by the administrator in his decision.

(e) Expiration of right to assess.--A jeopardy assessment may not be

made after the decision of the administrator has become final or after

the taxpayer has made an an application for review of the decision of

the administrator.

(f) Collection of unpaid amounts.--When a petition has been filed with

the administrator and when the amount which should have been assessed

has been determined by a decision of the administrator 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 administrator, 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

sixty-six 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

administrator.

(g) Abatement if jeopardy does not exist.--The administrator may abate

the jeopardy assessment if he finds that jeopardy does not exist. Such

abatement may not be made after a decision of the administrator in

respect of the deficiency has been rendered or, if no petition is filed

with the administrator, 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

administrator, 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 of deficiency under

section sixty-one is mailed to the taxpayer in a lesser amount, the bond

shall, at the request of the taxpayer, be proportionately reduced.

(i) Petition to administrator.--If the bond is given before the

taxpayer has filed his petition under section sixty-nine, 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 administrator which

has become final. If the administrator 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 administrator is rendered.

(j) Stay of sale of seized property pending administrators

decision.--Where a jeopardy assessment is made, the property seized for

the collection of the tax shall not be sold--

(1) if subdivision (b) is applicable, prior to the issuance of the

notice of deficiency and the expiration of the time provided in section

sixty-nine for filing a petition with the administrator, and

(2) if a petition is filed with the administrator (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) were not applicable.

Such property may be sold if the taxpayer consents to the sale, or if

the administrator 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

sixty-four, 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 administrator finds

that a taxpayer designs quickly to depart from this state or to remove

his property therefrom, or to conceal himself or his 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 administrator 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 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 administrator 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 administrator as provided in

subdivision (l), the administrator may reopen such taxable period each

time the taxpayer is found by the administrator to have received income,

within the current taxable year, since the termination of such period. A

taxable period so terminated by the administrator may be reopened by the

taxpayer if he files with the administrator a true and accurate return

of taxable income and credits allowed under this local law for such

taxable period, together with such other information as the

administrator may by regulations prescribe.

(n) Furnishing of bond where taxable year is closed by the

administrator.--Payment of taxes shall not be enforced by any

proceedings under the provisions of subdivision (l) prior to the

expiration of the time otherwise allowed for paying such taxes if the

taxpayer furnishes, under regulations prescribed by the administrator, a

bond to insure the timely making of returns with respect to, and payment

of, such taxes or any income taxes for prior years.