Current through Register Vol. 54, No. 50, December 14, 2024
Section 119.5 - Jeopardy assessments(a)Jeopardy assessments, filing and notice. If the Department believes that the assessment or collection of a deficiency of a tax under this article will be jeopardized by delay, in whole or in part, it is required to assess the deficiency immediately, together with the interest, additional amounts and additions to the tax provided by law by mailing or issuing notice of its finding to the taxpayer, together with a demand for immediate payment of the deficiency declared to be in jeopardy.(b)Closing of taxable year. If a taxpayer designs by immediate departure from this Commonwealth or otherwise, to avoid the payment of a tax imposed by this article for the preceding or current taxable year, the Department may, upon evidence satisfactory to it, declare the taxable period for the taxpayer immediately terminated and serve upon him notice and demand for immediate payment of the tax for the short taxable period resulting from the termination, and of a tax for the preceding taxable year, or so much of the tax as is unpaid. This tax shall be due and payable immediately, even though the time otherwise allowed by law for filing a return and paying the tax has not expired.(c)Payment and collection of jeopardy assessment. After a jeopardy assessment has been made, the Department will be required to send notice and demand to the taxpayer for the amount of the jeopardy assessment. The amount of the jeopardy assessment shall be immediately due and payable and proceedings for collection may be commenced by the Department at once. Collection of the jeopardy assessment may be stayed if the taxpayer, within 10 days after the date of the notice of the jeopardy assessment, files a petition for reassessment, accompanied by a bond or other security. The amount of the bond or security shall be the amount of the tax assessed, including interest, penalties and additions computed to the date of the notice plus 60 days together with an amount equaling 10% of the total figure. A bond given by a taxpayer under this subsection shall be executed by a surety company which is licensed with or under the supervision of the Insurance Commissioner of the Commonwealth. A security given by a taxpayer under this subsection may be any one of the following items or combination of items: (1) The amount of the bond or security shall be in the amounts as the Department may deem necessary.(2) A certified check on a State or national bank within the Commonwealth payable to the Department.(3) Satisfactory municipal bonds negotiable by delivery, or obligations of the United States government negotiable by delivery.(d)Additional security. The Department may require additional security whenever, in its opinion, the value of the security given is no longer sufficient to adequately secure the total amount of taxes and additions thereto.(e)Finality of jeopardy assessment. A jeopardy assessment shall become final if a petition for reassessment, accompanied by bond or other security, is not filed within the 10 day period provided for in subsection (c).(f)Hearing and action on petition for reassessment. The Department will grant a taxpayer or his authorized representative an oral hearing if the taxpayer so requests it in his petition for reassessment.(g)Decision. The taxpayer will be notified by the Department of its decision after the oral hearing, if requested, and after considering the petition for reassessment. The decision of Department as to the validity of the jeopardy assessment will be final unless, within 90 days after notification of the Department's decision, the taxpayer files a petition for review by the Board of Finance and Revenue as provided under § 119.7 (relating to review by Board of Finance and Revenue).(h)Presumptive evidence of jeopardy. In the event of a jeopardy assessment, the belief of the Department, whether made after notice to the taxpayer or not, will be, for purposes, presumptive evidence that the assessment or collection of the tax or the deficiency was in jeopardy. A certificate of the Department of the mailing or issuing of the notices specified in this section will be presumptive evidence that the notices were so mailed or issued.The provisions of this § 119.5 amended June 11, 1976, effective 6/12/1976, 6 Pa.B. 1331.