§6851 Termination Assessments of Income Tax

Summary

If the IRS thinks a taxpayer is about to quickly leave the United States, take their property out of the country, hide themselves or their property, or do anything else that would hurt or block tax collection, the IRS can immediately figure how much tax is owed for the current taxable year or the preceding taxable year (or both) and demand immediate payment. The IRS must assess that tax right away, add any interest and penalties, and notify the taxpayer with a demand for payment. For a current year, the tax is figured from the first day of that year up to the date the IRS makes this decision, as if that time were a full taxable year. Money collected this way counts as payment for that year. The IRS cannot use this rule to assess tax for a prior year if the assessment is made after the return’s due date (including any extensions). When the IRS makes such an emergency assessment, it must also mail a formal notice of deficiency under section 6212(a) within 60 days after the later of the return’s due date (with extensions) or the date the taxpayer files the return; that deficiency notice may show a different amount than the emergency assessment. For U.S. citizens or residents of U.S. possessions who are leaving, the IRS may choose to waive these special steps. For noncitizens, the IRS may require a certificate that they have met their tax obligations before leaving, but it will not use these emergency collection steps before the normal payment time if the IRS decides the departure will not jeopardize collection. Sections 6861(f) and 6861(g) apply to assessments made under this rule, and related rules about immediate levy and review are in sections 6331(a) and 7429.