                                 CODE OF VIRGINIA

IMMEDIATE ASSESSMENT WHERE COLLECTION JEOPARDIZED BY DELAY; NOTICE OF
ASSESSMENT; TERMINATION OF TAXABLE PERIOD; MEMORANDUM OF LIEN (§ 58.1-313)

A. If the Tax Commissioner determines that the collection of any income tax,
penalties or interest required to be paid under this title will be jeopardized
by delay, the Tax Commissioner shall immediately assess the actual or estimated
amount of tax due, together with all penalties and interest, and demand
immediate payment from the taxpayer. A notice of such assessment and demand
shall be sent by certified mail, return receipt requested, to the
taxpayer&#8217;s last known address or personally delivered to the taxpayer. In
the case of a tax for a current period, the Tax Commissioner shall declare the
taxable period of the taxpayer immediately terminated and shall cause notice of
such finding and declaration to be mailed or personally delivered to the
taxpayer together with a demand for immediate payment of the tax based on the
period declared terminated, and such tax shall be immediately due and payable,
whether or not the time otherwise allowed by law for filing a return and paying
the tax has expired. Assessments provided for in this section shall become
immediately due and payable, and if any such tax, penalty or interest is not
paid upon demand of the Tax Commissioner, he shall proceed to collect the same
by legal process as otherwise provided by law. A memorandum of lien provided for
in &#xA7; 58.1-1805 may be issued immediately upon assessment and notice
thereof, or the Tax Commissioner may require the taxpayer to file a bond
sufficient in the Commissioner&#8217;s judgment to protect the interest of the
Commonwealth. &#8220;Jeopardized by delay&#8221; for purposes of this section
includes a finding by the Tax Commissioner that a taxpayer designs (i) to depart
quickly from the Commonwealth, (ii) to remove his property therefrom, (iii) to
conceal himself or his property therein, or (iv) to do any other act tending to
prejudice or to render wholly or partially ineffectual proceedings to collect
the income tax for the period in question.

B. A memorandum of lien may be filed for delinquent income taxes assessed by the
Department only within six years after an assessment.

C. The Department shall notify the taxpayer that he shall have the opportunity
to appear at a meeting within fourteen days and make an oral or written
statement of why he believes no jeopardy to the revenue exists or why a
memorandum of lien should be released, if one was recorded. Upon request of the
taxpayer, the Department shall meet with the taxpayer at a time set by the
Department within fourteen days after the issuance of the jeopardy assessment.
The Department shall determine within twenty days after such meeting whether
such jeopardy assessment or lien should be withdrawn and shall send written
notice of such finding to the taxpayer. If the finding is not in the
taxpayer&#8217;s favor, he may use the remedies available for corrections of
erroneous assessments in Article 2 (&#xA7; 58.1-1820 et seq.) of Chapter 18.

HISTORY: Code 1950, § 58-151.0105; 1979, c. 639; 1984, c. 675; 1989, c. 263;
1996, c. 634.