2023 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.