Section 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.