NY Tax L § 694 (2021)
2021 New York Laws TAX - Tax Article 22 - Personal Income Tax Part 6 - Procedure and Administration 694 - Jeopardy Assessment.

§  694.  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  six  hundred  eighty-one  and   six   hundred   ninety-six, 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 six hundred 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 six hundred 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 six hundred 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 his petition under section six hundred 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 six hundred 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 six hundred 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 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 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 virtue 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 he files with the tax commission a true and accurate return of taxable income and credits allowed under this article 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 income taxes for prior years.