(a) Regardless of the date on which a return or payment is due or a taxable period of a taxpayer closes, the director shall declare the taxable period of any state tax terminated for that person and shall issue a jeopardy assessment and assess the tax from any information in his or her possession, notify the taxpayer, and demand immediate payment if the director believes that:
(1) The tax liability of any person who has a bond on file with the director to indemnify the state for the payment of any state tax is in excess of the amount of the bond;
(2) A taxpayer intends to depart from the state, to remove his or her property therefrom, or to conceal himself or herself or any of his or her property therein;
(3) A taxpayer intends to discontinue business without making adequate provisions for payment of all state tax; or
(4) A taxpayer intends to do any other act tending to prejudice, jeopardize, or render wholly or partially ineffectual proceedings to compute, assess, or collect any state tax.
(b) (1) Within five (5) days after the date on which a notice and demand for payment is made under subsection (a) of this section, the director shall provide the taxpayer with a written statement of the information upon which the director relies in making such assessment.
(2) If the taxpayer fails or refuses to pay the tax upon demand of the director or requests a hearing before the director within five (5) business days after the day the taxpayer is furnished the written statement described in subdivision (1) of this subsection, the tax shall become delinquent and the director shall proceed to issue a certificate of indebtedness.
(c) When the taxpayer requests a hearing, the director shall hold the hearing within five (5) business days of receipt of the request. After a hearing, the director shall determine whether the making of the assessment under subsection (a) of this section is reasonable under the circumstances and shall render his or her decision. The taxpayer has three (3) days after the receipt of the director's decision either to pay the tax and applicable penalty and interest due or to protest the decision of the director as provided by ยง 26-18-406(a) prior to the director's issuing a certificate of indebtedness.
(d) Whenever the director issues a jeopardy assessment, he or she shall have the burden of proving the reasonableness of the assessment.
Section: 26-18-402 26-18-403 26-18-404 26-18-405 26-18-406 NextLast modified: November 15, 2016