If the board believes that the collection of any amount of tax required to be paid by any person under this part will be jeopardized by delay, it shall thereupon make a determination of the amount of tax, noting that fact upon the determination. The amount determined is immediately due and payable.
DeterminationsJeopardy Determinations
Section § 30241
If the tax board thinks waiting to collect a tax will make it hard to recover, they can decide how much is owed and demand immediate payment.
tax collection urgency jeopardized tax collection immediate tax payment
Section § 30242
If someone receives a notice saying they owe taxes, interest, and penalties, they have 10 days to pay or challenge it. If they don't do either within that time, the amount owed is locked in, and extra charges for late payment will be added.
If the amount of the tax, interest, and penalty specified in the jeopardy determination is not paid within 10 days after service upon the person of notice of the determination, the determination becomes final, unless a petition for redetermination is filed within the 10 days, and the delinquency penalty and interest provided in Article 6 of this chapter shall attach to the amount specified.
jeopardy determination tax notice 10-day payment period
Section § 30243
If a person receives a jeopardy tax assessment, they have 10 days to file a petition with the department to challenge it. They must provide a deposit or security alongside the petition, which the department can use to ensure compliance. If the person doesn't pay, the department can sell the security at a public sale to cover the amount owed. The person will be informed of the sale in the same way they were notified of the assessment. Any leftover money from the sale, after covering the debt, will be refunded to the person.
The person against whom a jeopardy determination is made may petition for the redetermination thereof pursuant to Article 5 of this chapter. They shall, however, file the petition for redetermination with the department within 10 days after the service upon them of notice of the determination. The person shall at the time of filing the petition for redetermination deposit with the department such security as it may deem necessary to insure compliance with this part. The security may be sold by the department at public sale if it becomes necessary in order to recover any amount due under this part. Notice of the sale may be served upon the person who deposited the security in the same manner as prescribed for service of notice by Section 30206. Upon any such sale, the surplus, if any, above the amount due under
this part shall be returned to the person who deposited the security.
jeopardy determination petition for redetermination filing deadline
Section § 30243.5
This law allows a person, who is facing a "jeopardy determination"—a quick tax decision believed necessary to protect state revenue—to request a hearing to discuss specific issues. They can argue that the determination is too high, delay the sale of seized property if it would cause serious harm, ask for the return of their property, or pause collection activities. Requests must be made in writing within 30 days and explain why the hearing is needed. No deposit is needed for the hearing, but without a required security deposit, collection activities can continue unless it involves the sale of seized property. If there's a good reason for missing the application deadline, the board may allow a late application. Nonetheless, the hearing request doesn't impact the originally determined final date, penalties, or interest.
In accordance with such rules and regulations as the board may prescribe, the person against whom a jeopardy determination is made may apply for an administrative hearing for one or more of the following purposes:
(a)CA Revenue & Taxation Code § 30243.5(a) To establish that the determination is excessive; or
(b)CA Revenue & Taxation Code § 30243.5(b) To establish that the sale of property that may be seized after issuance of the jeopardy determination or any part thereof shall be delayed pending the administrative hearing because the sale would result in irreparable injury to the person; or
(c)CA Revenue & Taxation Code § 30243.5(c) To request the release of all or a part of the property to the person; or
(d)CA Revenue & Taxation Code § 30243.5(d) To request a stay of collection activities.
The application shall be filed within 30 days after service of the notice of jeopardy determination and shall be in writing and state the specific factual and legal grounds upon which it is founded. No security need be posted to file the application and to obtain this hearing. However, if the person does not deposit within the 10-day period prescribed in Section 30243, such security as the board may deem necessary to ensure compliance with this part, the filing of the application shall not operate as a stay of collection activities, except sale of property seized after issuance of the jeopardy determination. Upon a showing of good cause for failure to file a timely application for administrative hearing, the board
may allow a filing of the application and grant the person an administrative hearing. The filing of an application pursuant to this section shall not affect provisions of Section 30242 relating to the finality date of the determination or to penalty or interest.
jeopardy determination administrative hearing excessive determination
Section § 30244
This law states that any notice required under this article should be delivered using the same method as notices about deficiency determinations.
Any notice required by this article may be served in the manner prescribed for service of notice of a deficiency determination.
notice service deficiency determination notice delivery method
