IRS Extending the Tax Assessment Period 

Jeopardy Assessment (Part II) 

Jeopardy assessments will be made only if one or more of the following conditions exist: 

1. The taxpayer is, or appears to be, planning to depart the United States quickly or to conceal himself/herself; 

2. The taxpayer is, or appears to be, planning to place his/her property (including retirement plans) beyond the reach of the government by removing it from the United States, concealing it, dissipating it, and/or transferring it to another person; or 

3. The taxpayer’s financial solvency is or appears to be imperiled. (This does not include investigations where the taxpayer becomes insolvent by the accrual of the proposed assessment of tax, penalty, and interest.) The Service will promptly consider a taxpayer’s written request for administrative review of the decision that collection of the tax was in jeopardy, or that the amount of the assessment was excessive. (continues in the next Tuesday Tax Tip) 

IRS Publication 1035 (TTT 06/22/21 & 06/29/21)