Jeopardy Determinations

Revenue and Taxation Code Article 4 of Chapter 5 of Part 1 of Division 2 deals with jeopardy determinations under the California Sales and Use Tax Laws.

Section 6536 provides that, if the board believes that the collection of any tax or any amount of tax required to be collected and paid to the state or of any determination or other amount required to be paid to the state will be jeopardized by delay, it must make a determination of the tax or amount of tax required to be collected or other amount, noting that fact upon the determination. The amount determined is immediately due and payable.

Section 6537 explains that, if the amount specified in the determination is not paid within 10 days after service of notice thereof upon the person against whom the determination is made, the amount becomes final at the expiration of the 10 days, unless a petition for redetermination is filed within the 10 days, and the delinquency penalty and the interest attaches to the amount of the tax or the amount of the tax required to be collected.

Section 6538 explains that the person against whom a jeopardy determination is made may petition for the redetermination. He shall, however, file the petition for redetermination with the board within 10 days after the service upon him of notice of the determination.

Section 6538.5 states that, in accordance with the 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 four specified purposes.

Section 6539 provides that any notice required by this article must be served in the manner prescribed for service of notice of a deficiency determination.