§6861 Jeopardy assessments of income, estate, gift, and certain excise taxes

Summary

When the IRS thinks waiting will put collection at risk, it can immediately make an emergency tax assessment for the tax owed and add any interest and penalties, then send a notice and demand for payment. If the normal notice has not yet been mailed, the IRS must mail that notice within 60 days after the emergency assessment. An emergency assessment can be for an amount different from any earlier notice, even if the taxpayer already went to Tax Court. The IRS can reduce the assessment before the Tax Court decides if it thinks the amount is too high, and it must tell the Tax Court about any assessment or reduction so the court can re-decide the full amount. If the Tax Court already decided, an emergency assessment can only match that decision. The IRS cannot make an emergency assessment after the Tax Court decision is final or after the taxpayer asks for review. If a final Tax Court decision fixes a different amount, the IRS will collect any unpaid bonded amount, refund any overpayment automatically, or assess any shortfall. If the IRS later finds no jeopardy, it can cancel the emergency assessment, but only before the Tax Court decision or before the filing time runs; the time limits for bringing or collecting the tax are treated as if the canceled emergency assessment never happened, except the clock is paused from the assessment date until the 10th day after cancellation.