§6851 Termination assessments of income tax

Summary

If the IRS finds that a taxpayer is about to leave the United States, hide themselves or their property, or take other actions to keep income tax from being collected for the current year or the immediately preceding year, the IRS must quickly figure the tax owed for the affected year(s), make that tax immediately due, assess it (including interest and additions), and notify the taxpayer with a demand for immediate payment. For the current year, the IRS figures tax from the first day of that year up to the day it makes the determination as if that period were a full tax year. Money collected this way counts as payment for that year. The IRS cannot make such an assessment for a prior year after the return’s due date (including extensions). The IRS must also mail a formal notice of deficiency within 60 days after the later of the return due date (with extensions) or the date the return is filed; that deficiency amount can differ from the emergency assessment. The IRS may waive these rules for U.S. citizens or residents of U.S. possessions leaving the country. Foreign nationals may have to get a certificate showing they met tax rules before leaving, and the IRS may delay emergency collection if departure won’t risk getting the tax. Other normal collection and review rules still apply.