§6861 Jeopardy Assessments of Income, Estate, Gift, and Certain Excise Taxes

Summary

If the Secretary thinks collecting a tax will be in danger, he must immediately figure and charge the tax the taxpayer owes, including interest and penalties, and send a demand for payment. If that immediate charge happens before the normal notice was mailed, the Secretary must mail that notice within 60 days. The Secretary can charge an amount different from any earlier notice and can still do this even if the taxpayer has already gone to Tax Court. Before the Tax Court decides, the Secretary may reduce any unpaid part of the charge if he thinks it was too high. If a Tax Court case is already filed, the Secretary must tell the court about the charge or any reduction, and the court can decide the full amount. If the Tax Court has already decided, any late emergency charge can only match the court’s decision. No emergency charge may be made after the Tax Court decision is final or after the taxpayer asks for review of that decision. If a final court decision shows a different amount, the unpaid part is collected or the extra collected is refunded or credited. The Secretary may cancel the emergency charge if danger is found to be gone; the time limits for making assessments treat a canceled emergency charge as if it had not been made, except that the clock is paused from the charge date until the 10th day after it is canceled. Other rules about giving security and immediate levy are in sections 6863 and 6331(a).