Colorado § 39-21-111 - Jeopardy assessment and demands.

§ 39-21-111. Jeopardy assessment and demands.

(1) If the executive director of the department of revenue finds that collection of the tax will be jeopardized by delay, in his discretion, he may declare the taxable period immediately terminated, determine the tax, and issue notice and demand for payment thereof; and, having done so, the tax shall be due and payable forthwith, and the executive director may proceed immediately to collect such tax as provided in section 39-21-114.

(2) In any other case wherein it appears that the revenue is in jeopardy, the executive director of the department of revenue may immediately issue demand for payment; and, regardless of the provisions of sections 39-21-103 and 39-21-105, the tax shall be due and payable forthwith and, in his discretion, the executive director may proceed immediately to collect said tax as provided in section 39-21-114.

(3) Collection under either subsection (1) or (2) of this section may be stayed if the taxpayer gives such security for payment as shall be satisfactory to the executive director.

Source: L. 65: p. 1140, § 2. C.R.S. 1963: § 138-9-10.

ANNOTATION

Section not unconstitutionally vague. The words "jeopardized" and "jeopardy", in subsections (1) and (2), respectively, are not unconstitutionally vague. Kraftco Corp. v. Charnes, 636 P.2d 1300 (Colo. App. 1981).

Subsection (2) can reasonably be interpreted to apply in those situations in which a notice of deficiency has been issued. Flores v. Dept. of Rev., 802 P.2d 1175 (Colo. App. 1990).

Where a jeopardy assessment has been made without a notice of deficiency and a distraint warrant and seizure have been pursued under § 39-21-114, the taxpayer has no right to an administrative hearing under § 39-21-103, but the taxpayer may sue the executive director of the department in district court under § 39-21-114 (6) or proceed under § 24-4-106. Flores v. Dept. of Rev., 802 P.2d 1175 (Colo. App. 1990).