§ 105-241.23. Jeopardy assessment and collection. - North Carolina Statutes

§ 105‑241.23.  Jeopardyassessment and collection.

(a)        Action. – TheSecretary may at any time within the statute of limitations immediately assessand collect any tax the Secretary finds is due from a taxpayer if the Secretarydetermines that collection of the tax is in jeopardy and immediate assessmentand collection are necessary in order to protect the interest of the State. Inmaking a jeopardy collection, the Secretary may use any of the collectionremedies in G.S. 105‑242 and is not required to wait any period of timebefore using these remedies. Within 30 days after initiating a jeopardycollection, the Secretary must give the taxpayer the notice of proposedassessment required by G.S. 105‑241.9.

(b)        Review byDepartment. – Within five days after initiating a jeopardy collection that isnot the result of a criminal investigation or of a liability for a tax imposedunder Article 2D of this Chapter, the Secretary must provide the taxpayer witha written statement of the information upon which the Secretary relied ininitiating the jeopardy collection. Within 30 days after receipt of thiswritten statement or, if no statement is received, within 30 days after thestatement was due, the taxpayer may request the Secretary to review the actiontaken. After receipt of this request, the Secretary must determine whetherinitiating the jeopardy collection was reasonable under all the circumstancesand whether the amount assessed and collected was reasonable under all thecircumstances. The Secretary must give the taxpayer written notice of thisdetermination within 30 days after the request.

(c)        Judicial Review. – Within90 days after the earlier of the date a taxpayer received or should havereceived a determination of the Secretary concerning a jeopardy collectionunder subsection (b) of this section, the taxpayer may bring a civil actionseeking review of the jeopardy collection. The taxpayer may bring the action inthe Superior Court of Wake County or in the county in North Carolina in whichthe taxpayer resides. Within 20 days after the action is filed, the court mustdetermine whether the initiation of the jeopardy collection was reasonableunder the circumstances. If the court determines that an action of theSecretary was unreasonable or inappropriate, the court may order the Secretaryto take any action the court finds appropriate. If the taxpayer showsreasonable grounds why the 20‑day limit on the court should be extended,the court may grant an extension of not more than 40 additional days. (2007‑491, s. 1.)