59-1-703 - Collection procedure -- Review -- Bond for stay -- Sale of seized property.
59-1-703. Collection procedure -- Review -- Bond for stay -- Sale of seized property.
(1) (a) If an amount that is due and payable under Sections 59-1-701 and 59-1-702 is notpaid, the commission shall collect that amount in accordance with Part 14, Assessment, Collections,and Refunds Act.
(b) (i) For purposes of collecting an amount described in Subsection (1)(a), the commissionmay issue a warrant.
(ii) The commission may direct the warrant described in Subsection (1)(b)(i) to an authorizedrepresentative of the commission.
(iii) In executing the warrant described in Subsection (1)(b)(i), the authorized representativedescribed in Subsection (1)(b)(ii):
(A) has all of the powers conferred by law upon a sheriff; and
(B) may not collect a fee or other compensation for executing the warrant other than the actualexpenses paid to execute the warrant.
(2) (a) The appropriateness of a termination or jeopardy assessment shall be reviewable underprocedures prescribed by the commission by rule made in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act.
(b) The amount of a termination or jeopardy assessment is reviewable only in the mannerprescribed in Chapter 1, Part 5, Petitions for Redetermination of Deficiencies, and Part 6, JudicialReview.
(3) In a proceeding brought to enforce payment of a liability made due and payable under thissection, Section 59-1-701, or 59-1-702, the finding of the commission, whether made after notice tothe taxpayer or not, is presumptive evidence of jeopardy.
(4) (a) After a petition is filed with the commission and when the amount that the commissiondetermines to be assessable becomes final, any unpaid portion that is stayed by bond shall be collectedas part of the tax upon notice and demand from the commission.
(b) A portion remaining after the commission collects the amount determined to be assessableunder Subsection (4)(a) shall be abated.
(c) If the amount the commission collects in accordance with Subsection (4)(a) exceeds theamount that should have been assessed, the excess shall be credited or refunded to the taxpayer.
(d) If the amount the commission determines to be assessable in accordance with Subsection(4)(a) is greater than the amount actually assessed, the difference shall be assessed, and collected aspart of the tax, upon notice and demand by the commission.
(5) (a) The commission may abate a jeopardy assessment if the commission finds that jeopardydoes not exist.
(b) An abatement described in Subsection (5)(a) may not be made after a decision of thecommission in respect of the deficiency is rendered or, if no petition is filed with the commission, afterthe expiration of the period for filing a petition.
(c) The period of limitation on making an assessment or levy or a proceeding for collection, inrespect of a deficiency, shall be determined as if the commission had not abated the jeopardyassessment under Subsection (5)(a).
(d) The running of the period of limitation on making an assessment or levy or a proceeding forcollection shall be suspended from the date of a jeopardy assessment until the expiration of the 10th dayafter the jeopardy assessment is abated under this Subsection (5).
(6) (a) The collection of all or a part of a jeopardy assessment may be stayed by posting abond with the commission in the amount and under conditions established by the commission.
(b) A taxpayer may waive a stay described in Subsection (6)(a) at any time in respect of all orpart of the amount covered by the bond.
(c) If, as a result of a waiver described in Subsection (6)(b), any part of the amount coveredby the bond is paid, the commission shall proportionately reduce the bond at the request of the taxpayerthat waives the stay in accordance with Subsection (6)(b).
(d) If any portion of a jeopardy assessment is abated, or if a notice of deficiency is mailed to ataxpayer in a lesser amount, the bond shall, at the request of the taxpayer, be proportionately reduced.
(7) (a) If a bond is posted before a taxpayer files a petition for redetermination of a deficiencyunder Section 59-1-501, the bond shall contain a condition that the amount of the deficiencyassessment, the collection of which is stayed by the bond, shall be paid on notice and demand at anytime after the expiration of the stay, together with interest on the deficiency assessment, beginning on thedate of the jeopardy notice and demand and ending on the date of notice and demand under thisSubsection (7)(a).
(b) A bond described in Subsection (7)(a) shall be conditioned upon the payment of that partof the assessment, collection of which is stayed by the bond, that is:
(i) not abated by a decision of the commission; and
(ii) final.
(c) If the commission determines that the amount of a deficiency assessed is greater than theamount that should have been assessed, the bond shall be proportionately reduced:
(i) at the time the decision of the commission is rendered; and
(ii) at the request of the taxpayer that posts the bond.
(8) (a) If a jeopardy assessment is made under this section, property seized for the collectionof a tax may not be sold until:
(i) the commission issues a notice of deficiency; and
(ii) the time for filing a petition for redetermination expires.
(b) Except as provided in Subsection (8)(c), if a taxpayer files a petition for redetermination,regardless of whether the taxpayer files the petition for redetermination before or after the commissionmakes the jeopardy assessment, the property described in Subsection (8)(a) may not be sold until thecommission's decision on the petition is final.
(c) For purposes of Subsection (8)(b), the property described in Subsection (8)(a) may besold if:
(i) the taxpayer consents to the sale;
(ii) the commission determines that the expenses of conservation and maintenance of theproperty would greatly reduce the net proceeds of the sale; or
(iii) the property is perishable.
Amended by Chapter 212, 2009 General Session