Arizona Revised Statutes § 42-1111 Jeopardy Assessments

42-1111. Jeopardy assessments

A. If the department believes that the collection of any assessment or deficiency of any tax administered pursuant to this article will be jeopardized by delay, it shall, whether or not the time otherwise prescribed by law for making a return and paying the tax has expired and notwithstanding other provisions of law, immediately mail or issue notice of its finding and the information on which the finding is based to the taxpayer and demand immediate payment of the tax or deficiency declared to be in jeopardy, including interest, penalties and additions.

B. Jeopardy assessments are immediately due and payable and the department may immediately begin proceedings for collection. The taxpayer, however, may stay collection and prevent the jeopardy assessment from becoming final by filing, within ten days after the date of mailing or delivery of the notice of jeopardy assessment, or within such additional time as the department may allow, a bond or other security in such amounts as the department may deem necessary, not exceeding the amount of the assessment including interest and penalties as to which the stay is desired. The taxpayer may then proceed to appeal the assessment as provided in article 6 of this chapter.

C. If a bond or other security is not filed within the period prescribed by subsection B of this section, the department may treat the assessment as final for purposes of any collection proceedings. The taxpayer nevertheless shall be afforded the appeal rights provided in article 6 of this chapter. The filing of a petition by the taxpayer under section 42-1251, however, shall not stay the department's rights to pursue any collection proceedings.

D. In any proceeding brought to enforce payment of taxes made due and payable by this section:

1. The belief of the department under subsection A of this section, whether or not made after notice to the taxpayer, is for all purposes presumptive evidence that the assessment or collection of the tax or the deficiency was in jeopardy.

2. A certificate of the department of the mailing or issuing of the notice specified in this section is presumptive evidence that the notices were mailed or issued.

E. The taxpayer may request an expedited review of the department's action pursuant to section 42-2061.

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Last modified: October 13, 2016