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

(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.

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