N.Y. Tax Law § 288-a: Jeopardy assessments

§ 288-a. Jeopardy assessments. If the tax commission believes that the

collection of any tax will be jeopardized by delay it may determine the

amount of such tax and assess the same, together with all interest and

penalties provided by law, against any person liable therefor prior to

the filing of his return and prior to the date when his return is

required to be filed. The amount so determined shall become due and

payable to the tax commission by the person against whom such a jeopardy

assessment is made, as soon as notice thereof is given to him personally

or by registered or certified mail. The provisions of section two

hundred eighty-eight of this article shall apply to any such

determination except to the extent that they may be inconsistent with

the provisions of this section. The tax commission shall abate any

jeopardy assessment if it finds that jeopardy does not exist. The

collection of any jeopardy assessment may be stayed by filing with the

tax commission a bond issued by a surety company authorized to transact

business in this state and approved by the superintendent of financial

services as to solvency and responsibility, or such other security

acceptable to the tax commission, conditioned upon payment of the amount

assessed and interest thereon, or any lesser amount to which such

assessment may be reduced by the tax commission or by a proceeding under

article seventy-eight of the civil practice law and rules as provided in

section two hundred eighty-eight of this article, such payment to be

made when the assessment or any such reduction thereof shall have become

final and not subject to further review. If such a bond is filed and

thereafter a proceeding under article seventy-eight is commenced as

provided in subdivision five of section two hundred eighty-eight of this

article, deposit of the taxes, penalties and interest assessed shall not

be required as a condition precedent to the commencement of such

proceeding. Where a jeopardy assessment is made, any property seized for

the collection of the tax shall not be sold (1) until expiration of the

time to apply for a hearing as provided in section two hundred

eighty-eight of this article, and (2) if such application is timely

filed, until the expiration of four months after the tax commission has

given notice of its determination to the person against whom the

assessment is made; provided, however, such property may be sold at any

time if such person has failed to attend a hearing of which he has been

duly notified, or if he consents to the sale, or if the tax commission

determines that the expenses of conservation and maintenance will

greatly reduce the net proceeds, or if the property is perishable.