N.Y. General City Model 772/66 § 85: Jeopardy assessment

§ 85. Jeopardy assessment. 1. 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 seventy-two 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.

2. 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 seventy-two, then the director of

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

the making of the assessment.

3. 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 theretofore 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.

4. Amounts 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.

5. 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.

6. 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 seventy-seven 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.

7. 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.

8. 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 seventy-two is mailed to the taxpayer in a lesser amount, the

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

9. Petition to director of finance.--If the bond is given before the

taxpayer has filed its petition under section eighty, 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.

10. Stay of sale of seized property pending director's

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

the collection of the tax shall not be sold--

(a) if subdivision two is applicable, prior to the issuance of the

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

eighty for filing a petition with the director of finance, and

(b) 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 one 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.

11. Interest.--For the purpose of subdivision one of section

seventy-five, 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.

12. Early termination of taxable year.--If the director of finance

finds that a taxpayer designs quickly to remove its property from this

state, or to conceal its property therein, or to do any other act

tending to prejudice or to render wholly or partly ineffectual

proceedings to collect the tax for the current or the preceding 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

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. If 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.

13. Reopening of taxable period.-- Notwithstanding the termination of

the taxable period of the taxpayer by the director of finance, as

provided in subdivision twelve, 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 it files with the

director of finance a true and accurate return under any of the named

parts for such taxable period, together with such other information as

the director of finance may by regulations prescribe.

14. 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 twelve 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 for prior years.