Define: Jeopardy Assessment

A Jeopardy Assessment is a legal term used to describe a situation where a taxpayer’s assets are at risk of being seized by the government to satisfy outstanding tax liabilities.

A Jeopardy Assessment is typically made when the government believes that there is a risk of the taxpayer dissipating their assets or fleeing the country to avoid paying their tax liabilities. It allows the government to take immediate action to protect its interests.

In certain circumstances, the government can make a Jeopardy Assessment without providing prior notice to the taxpayer. This is done to prevent the taxpayer from taking any actions to evade their tax obligations.

A taxpayer facing a Jeopardy Assessment has the right to challenge the assessment through an administrative appeal or by filing a lawsuit in court. They also have the right to present evidence and arguments to support their case.

Yes, a taxpayer can request a stay of collection during a Jeopardy Assessment. If the taxpayer can demonstrate that the assessment is incorrect or that they will suffer irreparable harm if the collection proceeds, the government may grant a temporary suspension of collection activities.

Yes, a Jeopardy Assessment can be reversed if the taxpayer can prove that the assessment was made in error or that there was no legitimate basis for the government’s belief that the taxpayer was at risk of dissipating their assets.

While a Jeopardy Assessment itself does not result in criminal charges, it may be an indication that the government suspects the taxpayer of engaging in fraudulent or criminal activities. In such cases, the government may initiate a separate criminal investigation.

Yes, a taxpayer can negotiate a settlement with the government during a Jeopardy Assessment. However, the government may be less willing to negotiate if it believes that the taxpayer poses a significant flight risk or is attempting to evade their tax obligations.

Yes, a taxpayer can appeal a decision made during a Jeopardy Assessment. They can challenge the assessment itself, as well as any collection actions taken by the government.

The duration of a Jeopardy Assessment can vary depending on the complexity of the case and the actions taken by the taxpayer. In some cases, it may be resolved relatively quickly, while in others, it may take several months or even years to reach a resolution.