2023 New York Laws › GCT - General City › Article 2-D - City Personal Income Tax on Residents › 25-A-74 - Jeopardy Assessment.

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