N.Y. General City Model 772/66 § 142: Jeopardy assessment

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

of finance believes that the assessment or collection of a deficiency

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

of section one hundred twenty-nine and one hundred forty-four, 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 director of finance 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 one hundred twenty-nine, then the

director of finance shall mail a notice under such section within sixty

days after the making of the assessment.

(c) Amount assessable before decision of director of finance.--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 director of

finance. The director of finance 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

director of finance 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 director of finance.--If the

jeopardy assessment is made after the decision of the director of

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

deficiency determined by the director of finance in his decision.

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

made after the decision of the director of finance has become final or

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

the director of finance.

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

the director of finance and when the amount which should have been

assessed has been determined by a decision of the director of finance

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 director 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 one hundred thirty-four 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 director of finance.

(g) Abatement if jeopardy does not exist.--The director of finance may

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

Such abatement may not be made after a decision of the director of

finance in respect of the deficiency has been rendered or, if no

petition is filed with the director of finance, 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

director 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 of deficiency under

section one hundred twenty-nine is mailed to the taxpayer in a lesser

amount, the bond shall, at the request of the taxpayer, be

proportionately reduced.

(i) Petition to director of finance.--If the bond is given before the

taxpayer has filed his petition under section one hundred thirty-seven,

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

director of finance which has become final. If the director of finance

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 director

of finance is rendered.

(j) Stay of sale of seized property pending director of finance

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, pior to the issuance of the

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

one hundred thirty-seven for filing a petition with the director of

finance, and

(2) if a petition is filed with the director of finance (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 director 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 one

hundred thirty-two, 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 director of finance

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 preceeding taxable year unless such proceedings be

brought without delay, the director 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 preceeding 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 director 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 director of finance as

provided in subdivision (l), the director of finance may reopen such

taxable period each time the taxpayer is found by the director of

finance to have received income, within the current taxable year, since

the termination of such period. A taxable period so terminated by the

director of finance may be reopened by the taxpayer if he files with the

director of finance a true and accurate return of taxable income and

credits allowed under this title for such taxable period, together with

such other information as the director of finance may by regulations

prescribe.

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

finance.--Payment of taxes shall not be enforced by any proceedings

under the provisions of subdivision (1) prior to the expiration of the

time otherwise allowed for paying such taxes if the taxpayer furnishes,

under regulations prescribed by the director of finance, a bond to

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

such taxes or any taxes under this title for prior years.