59-1-701 - Grounds for termination and jeopardy assessment -- Notice -- Collection -- Reopening period -- Bond.
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 toremove his property therefrom, or to conceal himself or his property therein, or to do any otheract (including in the case of a taxpayer selling or otherwise distributing all or a part of its assets inliquidation or otherwise) tending to prejudice or to render wholly or partially ineffectualproceedings to collect any tax or penalty in lieu of tax for the current or the preceding taxableperiod, unless such proceedings be brought without delay, the commission may declare thetaxable period for such taxpayer immediately terminated whether or not the time otherwiseallowed by law for filing returns and paying the liability has expired. The commission shallimmediately make a determination of tax for the current taxable period or for the precedingperiod, or both, and notwithstanding any other provision of law, the tax shall become immediatelydue 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 noticeof determination and assessment to the taxpayer, together with a demand for immediate paymentof the tax.
(2) In the case of a current taxable period, the commission shall determine the tax for theperiod beginning on the first day of the current taxable period and ending on the date of thedetermination 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 withrespect to such current taxable period. Any amounts collected as a result of any assessmentsunder 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 inSubsection (1), the commission may reopen such taxable period each time the taxpayer is foundby the commission to have incurred additional liabilities, within the current taxable period, sincethe termination of such period. A taxable period so terminated by the commission may bereopened by the taxpayer if he files a true and accurate return, as required under Title 59, Chapter2, 7, 10, or 12, for the taxable period, together with such other information as the commissionmay by rule prescribe.
(4) Payment of taxes may not be enforced by any proceedings under Subsection (1) priorto 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 withrespect to, and payment of, the taxes, penalties, or interest for prior periods.
Renumbered and Amended by Chapter 3, 1987 General Session