Jeopardy Assessment Frequently Asked Questions

 

What is a Jeopardy Assessment?

NC Gen. Stat. §105-241.23 authorizes the NC Department of Revenue to immediately assess and collect any tax the Department finds is in jeopardy. In making a jeopardy collection, the Department may use any of the collection remedies in NC Gen. Stat. §105-242 and is not required to wait any period of time before using these remedies.

Why did I receive a jeopardy assessment?

You may receive a jeopardy assessment if you meet any of the following conditions:

  1. The taxpayer is or appears to be planning to quickly leave the state or to hide in order to defeat a tax liability.
  2. The taxpayer is or appears to be planning to quickly place property beyond the reach of the Department either by removing it from the state, concealing it, dissipating it, selling it or transferring it to other entities.
  3. The taxpayer’s financial solvency appears to be imperiled.
  4. The taxpayer’s financial solvency appears to be imperiled by continued business operations and refusal to pay collected trust taxes.
  5. Past legal actions have not resulted in compliance.

What recourse do I have if the Department issues a jeopardy assessment against me?

Review NC Gen. Stat. §105-241.23 to determine what options are available to you. If you have additional questions, contact the Collection Division Office that issued the assessment.

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