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SECTION 1094
Jeopardy assessment
Tax (TAX) CHAPTER 60, ARTICLE 27
§ 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.