Frequently Asked Questions
Who is eligible for the Abatement of Jeopardy Assessment?
Available to any taxpayer subject to a jeopardy assessment under Section 6861 where the IRS's belief that collection is in jeopardy is factually incorrect.
How does the Abatement of Jeopardy Assessment work?
Taxpayers can request the Secretary to abate a jeopardy assessment if they can demonstrate that jeopardy does not actually exist, effectively reversing the immediate demand for payment.
What law authorizes the Abatement of Jeopardy Assessment?
The Abatement of Jeopardy Assessment is authorized under IRC §6861(g) of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §6861
Source: Internal Revenue Code, Title 26, United States Code
§ 6861. Jeopardy assessments of income, estate, gift, and certain excise taxes(a) Authority for makingIf 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 lettersIf 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 CourtThe 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 CourtIf 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 assessA 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.
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