
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6861]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                CHAPTER 70--JEOPARDY, RECEIVERSHIPS, ETC.
 
                         Subchapter A--Jeopardy
 
                      PART II--JEOPARDY ASSESSMENTS
 
Sec. 6861. Jeopardy assessments of income, estate, gift, and 
        certain excise taxes
        

(a) Authority for making

    If the Secretary believes that the assessment or collection of a 
deficiency, as defined in section 6211, will be jeopardized by delay, he 
shall, notwithstanding the provisions of section 6213(a), immediately 
assess such deficiency (together with all interest, additional amounts, 
and additions to the tax provided for by law), and notice and demand 
shall be made by the Secretary for the payment thereof.

(b) Deficiency letters

    If the jeopardy assessment is made before any notice in respect of 
the tax to which the jeopardy assessment relates has been mailed under 
section 6212(a), then the Secretary shall mail a notice under such 
subsection within 60 days after the making of the assessment.

(c) Amount assessable before decision of Tax Court

    The jeopardy assessment may be made in respect of a deficiency 
greater or less than that notice of which has been mailed to the 
taxpayer, despite the provisions of section 6212(c) prohibiting the 
determination of additional deficiencies, and whether or not the 
taxpayer has theretofore filed a petition with the Tax Court. The 
Secretary may, at any time before the decision of the Tax Court is 
rendered, abate such assessment, or any unpaid portion thereof, to the 
extent that he believes the assessment to be excessive in amount. The 
Secretary shall notify the Tax Court of the amount of such assessment, 
or abatement, if the petition is filed with the Tax Court before the 
making of the assessment or is subsequently filed, and the Tax Court 
shall have jurisdiction to redetermine the entire amount of the 
deficiency and of all amounts assessed at the same time in connection 
therewith.

(d) Amount assessable after decision of Tax Court

    If the jeopardy assessment is made after the decision of the Tax 
Court is rendered, such assessment may be made only in respect of the 
deficiency determined by the Tax Court in its decision.

(e) Expiration of right to assess

    A jeopardy assessment may not be made after the decision of the Tax 
Court has become final or after the taxpayer has filed a petition for 
review of the decision of the Tax Court.

(f) Collection of unpaid amounts

    When the petition has been filed with the Tax Court and when the 
amount which should have been assessed has been determined by a decision 
of the Tax Court which has become final, then any unpaid portion, the 
collection of which has been stayed by bond as provided in section 
6863(b) shall be collected as part of the tax upon notice and demand 
from the Secretary, and any remaining portion of the assessment shall be 
abated. If the amount already collected exceeds the amount determined as 
the amount which should have been assessed, such excess shall be 
credited or refunded to the taxpayer as provided in section 6402, 
without the filing of claim therefor. If the amount determined as the 
amount which should have been assessed is greater than the amount 
actually assessed, then the difference shall be assessed and shall be 
collected as part of the tax upon notice and demand from the Secretary.

(g) Abatement if jeopardy does not exist

    The Secretary may abate the jeopardy assessment if he finds that 
jeopardy does not exist. Such abatement may not be made after a decision 
of the Tax Court in respect of the deficiency has been rendered or, if 
no petition is filed with the Tax Court, after the expiration of the 
period for filing such petition. The period of limitation on the making 
of assessments and levy or a proceeding in court for collection, in 
respect of any deficiency, shall be determined as if the jeopardy 
assessment so abated had not been made, except that the running of such 
period shall in any event be suspended for the period from the date of 
such jeopardy assessment until the expiration of the 10th day after the 
day on which such jeopardy assessment is abated.

(h) Cross references

            (1) For the effect of the furnishing of security for 
        payment, see section 6863.
            (2) For provision permitting immediate levy in case of 
        jeopardy, see section 6331(a).

(Aug. 16, 1954, ch. 736, 68A Stat. 834; Pub. L. 93-406, title II, 
Sec. 1016(a)(24), Sept. 2, 1974, 88 Stat. 931; Pub. L. 94-455, title 
XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976,90 Stat. 1834.)


                               Amendments

    1976--Pub. L. 94-455 struck out ``or his delegate'' after 
``Secretary'' wherever appearing.
    1974--Pub. L. 93-406 substituted ``, gift, and certain excise 
taxes'' for ``and gift taxes'' in section catchline.


                    Effective Date of 1974 Amendment

    Amendment by Pub. L. 93-406 applicable, except as otherwise provided 
in section 1017(c) through (i) of Pub. L. 93-406, for plan years 
beginning after Sept. 2, 1974, but, in the case of plans in existence on 
Jan. 1, 1974, amendment by Pub. L. 93-406 applicable for plan years 
beginning after Dec. 31, 1975, see section 1017 of Pub. L. 93-406, set 
out as an Effective Date; Transitional Rules note under section 410 of 
this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 534, 6015, 6212, 6213, 6231, 
6234, 6656, 6852, 6863, 6867, 7429, 7611 of this title; title 5 section 
5568; title 37 section 558.
