NY Tax L § 1094 (2021)
2021 New York Laws TAX - Tax Article 27 - Corporate Tax Procedure and Administration 1094 - Jeopardy Assessment.

§  1094. Jeopardy assessment.---(a) Authority for making.---If the tax commission believes that the assessment or collection  of  a  deficiency will  be  jeopardized by delay, it shall, notwithstanding the provisions of section one thousand eighty-one, 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 tax commission 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 thousand eighty-one, then  the tax  commission shall mail a notice under such section within sixty days after the making of the assessment.  (c)  Amount  assessable  before  decision  of  tax   commission.---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  tax commission. The tax commission may, at any  time  before  rendering  its decision,  abate  such assessment, or any unpaid portion thereof, to the extent that it believes the assessment to be excessive  in  amount.  The tax  commission may in its 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 tax commission.--- If the jeopardy assessment is made after the decision of the tax commission  is rendered,  such assessment may be made only in respect of the deficiency determined by the tax commission in its decision.  (e) Expiration of right to assess.---A jeopardy assessment may not  be made  after the decision of the tax commission has become final or after the taxpayer has made an application for review of the decision  of  the tax commission.  (f)  Collection  of  unpaid  amounts.---When a petition has been filed with the tax commission and when  the  amount  which  should  have  been assessed  has  been determined by a decision of the tax commission 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 tax commission, 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 thousand eighty-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 tax commission.  (g)  Abatement  if  jeopardy  does not exist.---The tax commission may abate the jeopardy assessment if it finds that jeopardy does not  exist. Such abatement may not be made after a decision of the tax commission in respect  of the deficiency has been rendered or, if no petition is filed with the tax commission, 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 tax  commission, 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 thousand eighty-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 tax commission.---If the  bond  is  given  before  the taxpayer  has filed its petition under section one thousand eighty-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 subsection. 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 tax commission which has become final. If the tax commission  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 tax commission is rendered.  (j)  Stay  of  sale  of  seized  property   pending   tax   commission decision.---Where a jeopardy assessment is made, the property seized for the collection of the tax shall not be sold---  (1)  if  subsection  (b)  is  applicable, prior to the issuance of the notice of deficiency and the expiration of the time provided in  section one  thousand eighty-nine for filing a petition with the tax commission, and  (2) if a petition is filed with the tax commission (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 subsection (a) were not applicable. Such  property  may  be sold if the taxpayer 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.  (k) Interest.---For the purpose  of  subsection  (a)  of  section  one thousand  eighty-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 tax  commission  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 tax commission 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 virture of the provisions  of  this  subsection,  the finding  of  the  tax  commission  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 tax commission, as provided in subsection (l), the tax commission may reopen such taxable  period  each time  the  taxpayer  is  found  by  the  tax commission to have received income, within the current taxable year, since the termination  of  such period.  A  taxable  period  so  terminated by the tax commission may be reopened by the taxpayer if it files with the tax commission a true  and accurate  return  under  article nine, nine-a, nine-b or nine-c for such taxable  period,  together  with  such  other  information  as  the  tax commission may by regulations prescribe.  (n)  Furnishing  of  bond  where  taxable  year  is  closed by the tax commission.---Payment of taxes shall not be enforced by any  proceedings under  the  provisions  of subsection (l) prior to the expiration of the time otherwise allowed for paying such taxes if the taxpayer  furnishes, under regulations prescribed by the tax commission, a bond to insure the timely  making of returns with respect to, and payment of, such taxes or any taxes for prior years.