59-1-701. Grounds for termination and jeopardy assessment -- Notice -- Collection
-- Reopening period -- Bond.
(1) If the commission finds that a taxpayer intends quickly to depart from this state or to
remove his property therefrom, or to conceal himself or his property therein, or to do any other
act (including in the case of a taxpayer selling or otherwise distributing all or a part of its assets in
liquidation or otherwise) tending to prejudice or to render wholly or partially ineffectual
proceedings to collect any tax or penalty in lieu of tax for the current or the preceding taxable
period, unless such proceedings be brought without delay, the commission may declare the
taxable period for such taxpayer immediately terminated whether or not the time otherwise
allowed by law for filing returns and paying the liability has expired. The commission shall
immediately make a determination of tax for the current taxable period or for the preceding
period, or both, and notwithstanding any other provision of law, the tax shall become immediately
due and payable. The commission shall immediately assess the amount of the tax so determined
(together with all interest, penalties, additional amounts, and additions to the tax provided by law)
for the current taxable period or such preceding taxable period, or both, and shall give the notice
of determination and assessment to the taxpayer, together with a demand for immediate payment
of the tax.
(2) In the case of a current taxable period, the commission shall determine the tax for the
period beginning on the first day of the current taxable period and ending on the date of the
determination under Subsection (1) as though the period were a taxable period of the taxpayer.
The commission shall take into account any prior determination made under this subsection with
respect to such current taxable period. Any amounts collected as a result of any assessments
under this subsection shall be treated as a partial payment of tax for the taxable period.
(3) Notwithstanding the termination of the taxable period of the taxpayer as provided in
Subsection (1), the commission may reopen such taxable period each time the taxpayer is found
by the commission to have incurred additional liabilities, within the current taxable period, since
the termination of such period. A taxable period so terminated by the commission may be
reopened by the taxpayer if he files a true and accurate return, as required under Title 59, Chapter
2, 7, 10, or 12, for the taxable period, together with such other information as the commission
may by rule prescribe.
(4) Payment of taxes may not be enforced by any proceedings under Subsection (1) prior
to the expiration of the time otherwise allowed for paying such taxes if the taxpayer furnishes,
under rules prescribed by the commission, a bond to ensure the timely making of returns with
respect to, and payment of, the taxes, penalties, or interest for prior periods.
Renumbered and Amended by Chapter 3, 1987 General Session
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Last revised: Thursday, May 28, 2009