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levy in bad faith as a means of advancing respondent’s
negotiating position in settlement discussions and that
respondent’s Appeals officer erred in sustaining the jeopardy
levy.
If the Secretary believes that the assessment or collection
of a tax deficiency will be jeopardized by delay, he shall
immediately assess the deficiency and issue notice and demand for
payment to the person liable for the payment of the tax.18 Sec.
6861(a). The existence of one or more of the following
conditions supports a determination that the collection of a tax
is in jeopardy:
(i) The taxpayer is or appears to be designing
quickly to depart from the United States or to conceal
himself or herself.
(ii) The taxpayer is or appears to be designing to
quickly place his, her, or its property beyond the
reach of the Government either by removing it from the
United States, by concealing it, by dissipating it, or
by transferring it to other persons.
(iii) The taxpayer’s financial solvency is or
appears to be imperiled.
Sec. 1.6851-1(a), Income Tax Regs.; sec. 301.6861-1(a), Proced. &
Admin. Regs. Notice and demand may be issued for the immediate
payment of a tax whose collection is determined to be in
jeopardy. Sec. 6331(a). Upon a failure or refusal to pay such
18Pursuant to sec. 1.6851-1, Income Tax Regs., and sec.
301.6861-1, Proced. & Admin. Regs., the Secretary authorizes
certain IRS employees to determine whether the collection of a
tax is in jeopardy.
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