N.Y. Comp. Codes R. & Regs. tit. 20 § 419.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 419.2 - Jeopardy assessments

Tax Law, § 288-a

(a) If the Department of Taxation and Finance believes that the collection of any tax will be jeopardized by delay, the department may, prior to the filing of a return and prior to the date such return is required to be filed, determine and assess the amount of such tax, together with all interest and penalties provided by law, against any person liable therefor. Such amount becomes due and payable by the person against whom the assessment is made as of the date a notice of the jeopardy assessment is given personally or by registered or certified mail to such person. The department may abate any such assessment if it finds that jeopardy does not exist.

(b) The collection of any jeopardy assessment may be stayed pending a hearing or a proceeding under article 78 of the Civil Practice Law and Rules by filing with the department a bond (issued by a surety company authorized to transact business in this State and approved by the Superintendent of Insurance as to solvency and responsibility) or by depositing with the department other acceptable security in the amount of the tax, interest and penalty assessed. If such a bond or security is filed or deposited and thereafter a proceeding under article 78 is commenced, the deposit of the taxes, penalties and interest assessed is not required as a condition precedent to the commencement of such proceeding.

(c) Where a jeopardy assessment is made, any property seized for the collection of the tax may not be sold until the expiration of the time to apply for a hearing and if such application is timely filed until the expiration of four months after the Tax Appeals Tribunal has given notice of its determination. Provided, however, property may be sold at any time if the person against whom the assessment is made fails to attend a hearing of which such person has been duly notified or if such person consents to the sale. Further, property may be sold if the department determines that the expenses of conservation and maintenance of the property would greatly reduce the net proceeds obtainable or if such property is perishable.

(d) The provisions of section 419.1 of this Part and section 288 of article 12-A of the Tax Law apply to any determination of a jeopardy assessment, except to the extent that they may be inconsistent with the provisions of this section and section 288-a of such article of the Tax Law.

(e) See Part 2394 of this Title for procedures concerning predecision warrants and hearings in respect thereto.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 419.2