N.Y. Tax Law § 1094 — Jeopardy assessment

§ 1094. Jeopardy assessment.---(a) Authority for making.---If the tax\ncommission believes that the assessment or collection of a deficiency\nwill be jeopardized by delay, it shall, notwithstanding the provisions\nof section one thousand eighty-one, immediately assess such deficiency\n(together with all interest, penalties and additions to tax provided for\nby law), and notice and demand shall be made by the tax commission for\nthe payment thereof.\n (b) Notice of deficiency.---If the jeopardy assessment is made before\nany notice in respect of the tax to which the jeopardy assessment\nrelates has been mailed under section one thousand eighty-one, then the\ntax commission shall mail a notice under such section within sixty days\nafter the making of the assessment.\n (c) Amount assessable before decision of tax commission.---The\njeopardy assessment may be made in respect of a deficiency greater or\nless than that of which notice is mailed to the taxpayer and whether or\nnot the taxpayer has theretofore filed a petition with the tax\ncommission. The tax commission may, at any time before rendering its\ndecision, abate such assessment, or any unpaid portion thereof, to the\nextent that it believes the assessment to be excessive in amount. The\ntax commission may in its decision redetermine the entire amount of the\ndeficiency and of all amounts assessed at the same time in connection\ntherewith.\n (d) Amount assessable after decision of tax commission.--- If the\njeopardy assessment is made after the decision of the tax commission is\nrendered, such assessment may be made only in respect of the deficiency\ndetermined by the tax commission in its decision.\n (e) Expiration of right to assess.---A jeopardy assessment may not be\nmade after the decision of the tax commission has become final or after\nthe taxpayer has made an application for review of the decision of the\ntax commission.\n (f) Collection of unpaid amounts.---When a petition has been filed\nwith the tax commission and when the amount which should have been\nassessed has been determined by a decision of the tax commission which\nhas become final, then any unpaid portion, the collection of which has\nbeen stayed by bond, shall be collected as part of the tax upon notice\nand demand from the tax commission, and any remaining portion of the\nassessment shall be abated. If the amount already collected exceeds the\namount determined as the amount which should have been assessed, such\nexcess shall be credited or refunded to the taxpayer as provided in\nsection one thousand eighty-six without the filing of claim therefor. If\nthe amount determined as the amount which should have been assessed is\ngreater than the amount actually assessed, then the difference shall be\nassessed and shall be collected as part of the tax upon notice and\ndemand from the tax commission.\n (g) Abatement if jeopardy does not exist.---The tax commission may\nabate the jeopardy assessment if it finds that jeopardy does not exist.\nSuch abatement may not be made after a decision of the tax commission in\nrespect of the deficiency has been rendered or, if no petition is filed\nwith the tax commission, after the expiration of the period for filing\nsuch petition. The period of limitation on the making of assessments and\nlevy or a proceeding for collection, in respect of any deficiency, shall\nbe determined as if the jeopardy assessment so abated had not been made,\nexcept that the running of such period shall in any event be suspended\nfor the period from the date of such jeopardy assessment until the\nexpiration of the tenth day after the day on which such jeopardy\nassessment is abated.\n (h) Bond to stay collection.---The collection of the whole or any\namount of any jeopardy assessment may be stayed by filing with the tax\ncommission, within such time as may be fixed by regulation, a bond in an\namount equal to the amount as to which the stay is desired, conditioned\nupon the payment of the amount (together with interest thereon) the\ncollection of which is stayed at the time at which, but for the making\nof the jeopardy assessment, such amount would be due. Upon the filing of\nthe bond the collection of so much of the amount assessed as is covered\nby the bond shall be stayed. The taxpayer shall have the right to waive\nsuch stay at any time in respect of the whole or any part of the amount\ncovered by the bond, and if as a result of such waiver any part of the\namount covered by the bond is paid, then the bond shall at the request\nof the taxpayer, be proportionately reduced. If any portion of the\njeopardy assessment is abated, or if a notice of deficiency under\nsection one thousand eighty-one is mailed to the taxpayer in a lesser\namount, the bond shall, at the request of the taxpayer, be\nproportionately reduced.\n (i) Petition to tax commission.---If the bond is given before the\ntaxpayer has filed its petition under section one thousand eighty-nine,\nthe bond shall contain a further condition that if a petition is not\nfiled within the period provided in such section, then the amount, the\ncollection of which is stayed by the bond, will be paid on notice and\ndemand at any time after the expiration of such period, together with\ninterest thereon from the date of the jeopardy notice and demand to the\ndate of notice and demand under this subsection. The bond shall be\nconditioned upon the payment of so much of such assessment (collection\nof which is stayed by the bond) as is not abated by a decision of the\ntax commission which has become final. If the tax commission determines\nthat the amount assessed is greater than the amount which should have\nbeen assessed, then the bond shall, at the request of the taxpayer, be\nproportionately reduced when the decision of the tax commission is\nrendered.\n (j) Stay of sale of seized property pending tax commission\ndecision.---Where a jeopardy assessment is made, the property seized for\nthe collection of the tax shall not be sold---\n (1) if subsection (b) is applicable, prior to the issuance of the\nnotice of deficiency and the expiration of the time provided in section\none thousand eighty-nine for filing a petition with the tax commission,\nand\n (2) if a petition is filed with the tax commission (whether before or\nafter the making of such jeopardy assessment), prior to the expiration\nof the period during which the assessment of the deficiency would be\nprohibited if subsection (a) were not applicable.\nSuch property may be sold if the taxpayer consents to the sale, or if\nthe tax commission determines that the expenses of conservation and\nmaintenance will greatly reduce the net proceeds, or if the property is\nperishable.\n (k) Interest.---For the purpose of subsection (a) of section one\nthousand eighty-four, the last date prescribed for payment shall be\ndetermined without regard to any notice and demand for payment issued\nunder this section prior to the last date otherwise prescribed for such\npayment.\n (l) Early termination of taxable year.---If the tax commission finds\nthat a taxpayer designs quickly to remove its property from this state,\nor to conceal its property therein, or to do any other act tending to\nprejudice or to render wholly or partly ineffectual proceedings to\ncollect the tax for the current or the preceding taxable year unless\nsuch proceedings be brought without delay, the tax commission shall\ndeclare the taxable period for such taxpayer immediately terminated, and\nshall cause notice of such finding and declaration to be given the\ntaxpayer, together with a demand for immediate payment of the tax for\nthe taxable period so declared terminated and of the tax for the\npreceding taxable year or so much of such tax as is unpaid, whether or\nnot the time otherwise allowed by law for filing return and paying the\ntax has expired; and such taxes shall thereupon become immediately due\nand payable. In any proceeding brought to enforce payment of taxes made\ndue and payable by virture of the provisions of this subsection, the\nfinding of the tax commission made as herein provided, whether made\nafter notice to the taxpayer or not, shall be for all purposes\npresumptive evidence of jeopardy.\n (m) Reopening of taxable period.---Notwithstanding the termination of\nthe taxable period of the taxpayer by the tax commission, as provided in\nsubsection (l), the tax commission may reopen such taxable period each\ntime the taxpayer is found by the tax commission to have received\nincome, within the current taxable year, since the termination of such\nperiod. A taxable period so terminated by the tax commission may be\nreopened by the taxpayer if it files with the tax commission a true and\naccurate return under article nine, nine-a, nine-b or nine-c for such\ntaxable period, together with such other information as the tax\ncommission may by regulations prescribe.\n (n) Furnishing of bond where taxable year is closed by the tax\ncommission.---Payment of taxes shall not be enforced by any proceedings\nunder the provisions of subsection (l) prior to the expiration of the\ntime otherwise allowed for paying such taxes if the taxpayer furnishes,\nunder regulations prescribed by the tax commission, a bond to insure the\ntimely making of returns with respect to, and payment of, such taxes or\nany taxes for prior years.\n