58.1-313 - Immediate assessment where collection jeopardized by delay; notice of assessment; termination of taxable period; memorandum of lien.
§ 58.1-313. Immediate assessment where collection jeopardized by delay;notice of assessment; termination of taxable period; memorandum of lien.
A. If the Tax Commissioner determines that the collection of any income tax,penalties or interest required to be paid under this title will bejeopardized by delay, the Tax Commissioner shall immediately assess theactual or estimated amount of tax due, together with all penalties andinterest, and demand immediate payment from the taxpayer. A notice of suchassessment and demand shall be sent by certified mail, return receiptrequested, to the taxpayer's last known address or personally delivered tothe taxpayer. In the case of a tax for a current period, the Tax Commissionershall declare the taxable period of the taxpayer immediately terminated andshall cause notice of such finding and declaration to be mailed or personallydelivered to the taxpayer together with a demand for immediate payment of thetax based on the period declared terminated, and such tax shall beimmediately due and payable, whether or not the time otherwise allowed by lawfor filing a return and paying the tax has expired. Assessments provided forin this section shall become immediately due and payable, and if any suchtax, penalty or interest is not paid upon demand of the Tax Commissioner, heshall proceed to collect the same by legal process as otherwise provided bylaw. A memorandum of lien provided for in § 58.1-1805 may be issuedimmediately upon assessment and notice thereof, or the Tax Commissioner mayrequire the taxpayer to file a bond sufficient in the Commissioner's judgmentto protect the interest of the Commonwealth. "Jeopardized by delay" forpurposes of this section includes a finding by the Tax Commissioner that ataxpayer designs (i) to depart quickly from the Commonwealth, (ii) to removehis property therefrom, (iii) to conceal himself or his property therein, or(iv) to do any other act tending to prejudice or to render wholly orpartially ineffectual proceedings to collect the income tax for the period inquestion.
B. A memorandum of lien may be filed for delinquent income taxes assessed bythe Department only within six years after an assessment.
C. The Department shall notify the taxpayer that he shall have theopportunity to appear at a meeting within fourteen days and make an oral orwritten statement of why he believes no jeopardy to the revenue exists or whya memorandum of lien should be released, if one was recorded. Upon request ofthe taxpayer, the Department shall meet with the taxpayer at a time set bythe Department within fourteen days after the issuance of the jeopardyassessment. The Department shall determine within twenty days after suchmeeting whether such jeopardy assessment or lien should be withdrawn andshall send written notice of such finding to the taxpayer. If the finding isnot in the taxpayer's favor, he may use the remedies available forcorrections of erroneous assessments in Article 2 (§ 58.1-1820 et seq.) ofChapter 18.
(Code 1950, § 58-151.0105; 1979, c. 639; 1984, c. 675; 1989, c. 263; 1996, c.634.)