42.2.503 JEOPARDY ASSESSMENT AND EMERGENCY EXECUTION

(1) If the department finds the assessment or collection of a deficiency will be jeopardized by delay and a deficiency notice has not been issued, the deficiency, penalty, and accrued interest become immediately due and payable on the date the department mails the taxpayer a written notice:

(a) of its finding that assessment or collection of the deficiency will be jeopardized by delay and its basis for making the finding;

(b) of the amount of deficiency, penalty, and accrued interest (the Notice of Assessment (NOA));

(d) that the department may immediately commence collection proceedings, including issuing a Warrant for Distraint;

(e) that if the taxpayer does not file a written objection to the amount of the NOA or a Request for Informal Review Form (APLS101F) with the department within 30 days of the date of the notice, the assessment becomes final and may not be appealed to the state tax appeal board; and

(f) that while filing the objection or request as provided in (1)(e) will not stop or delay collection proceedings, including issuing a Warrant for Distraint, if the taxpayer files the objection or request and it is subsequently determined in the department dispute resolution proceedings or on subsequent appeal that the amount of tax collected is in excess of the amount due, the amount of the overpayment will be credited against any income tax, penalty, or interest then due from the taxpayer and the balance of the excess refunded to the taxpayer as provided in 15-30-2609 and 15-31-531, MCA.

(2) If the department finds the collection of a deficiency, for which an NOA has been mailed, will be jeopardized by delay and the time for filing a written objection to the amount of the NOA or a Request for Informal Review form (APLS101F) with the department as provided in ARM 42.2.510 has not yet expired, the deficiency, penalty, and accrued interest become immediately due and payable on the date the department mails the taxpayer a written notice:

(a) of its finding that collection of the deficiency will be jeopardized by delay and its basis for making the finding;

(b) that immediate payment of the deficiency, penalty and interest is demanded;

(d) that if it is subsequently determined in the department dispute resolution proceedings or on subsequent appeal that the amount of tax collected is in excess of the amount due, the amount of the overpayment will be credited against any income tax, penalty, or interest then due from the taxpayer and the balance of the excess refunded to the taxpayer as provided in 15-30-2609 and 15-31-531, MCA.

(3) If the department finds the collection of a tax, including penalty and interest, will be jeopardized by delaying the issuance of a Warrant for Distraint until the notice provided in 15-1-702, MCA, has been given and 30 days have passed, the department will issue the Warrant for Distraint without giving the taxpayer prior notice. On the date a Warrant for Distraint is issued, the department will mail the taxpayer written notice that warrants have been issued.

(4) If the department has reason to believe that collection of the amount of any tax withheld is in jeopardy, the department will issue the Warrant for Distraint without giving the employer prior notice. On the date a Warrant for Distraint is issued, the department will mail the employer written notice that warrants have been issued.

History: 15-1-201, 15-30-2620, 15-31-501, 15-36-322, 15-39-114, MCA; IMP, 15-30-2504, 15-30-2631, 15-31-522, 15-31-525, 15-31-531, 15-36-319, 15-37-107, 15-38-107, 15-38-108, 15-39-106, MCA; NEW, Eff. 12/31/72; AMD, 1982 MAR p. 14, Eff. 1/15/82; AMD and TRANS, from 42.16.103, 2004 MAR p. 3153, Eff. 12/17/04; AMD, 2008 MAR p. 340, Eff. 2/15/08; AMD, 2014 MAR p. 1527, Eff. 7/11/14; AMD, 2016 MAR p. 2073, Eff. 11/11/16.