Page:United States Statutes at Large Volume 68A.djvu/877

 CH. 70—JEOPARDY, BANKRUPTCY AND RECEIVERSHIPS

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that the amount assessed is greater than the amount which should have been assessed, then when the decision of the Tax Court is rendered the bond shall, at the request of the taxpayer, be proportionately reduced. (3) STAY OF SALE OF SEIZED PROPERTY PENDING TAX COURT DECISION. (A) GENERAL RULE.—Where, notwithstanding the provisions

of section 6213(a), a jeopardy assessment has been made under section 6861 the property seized for the collection of the tax shall not be sold— (i) if section 6861(b) is applicable, prior to the issuance of the notice of deficiency and the expiration of the time provided in section 6213(a) for filing petition with the Tax Court, and (ii) if petition is filed with the Tax Court (whether before or after the making of such jeopardy assessment under section 6861), prior to the expiration of the period during which the assessment of the deficiency would be prohibited if section 6861 (a) were not applicable. (B) EXCEPTIONS.—Such property may be sold if— (i) the taxpayer consents to the sale, (ii) the Secretary or his delegate determines that the expenses of conservation and maintenance will greatly reduce the net proceeds, or (iii) the property is of the type described in section 6336. (C) APPLICABILITY.—Subparagraphs (A) and (B) shall be applicable only with respect to a jeopardy assessment made on or after January 1, 1955, and shall apply with respect to taxes imposed by this title and with respect to taxes imposed by the Internal Revenue Code of 1939. SEC. 6864. TERMINATION OF EXTENDED PERIOD FOR PAYMENT IN CASE OF CARRYBACK. For termination of extensions of time for payment of income tax granted to corporations expecting carrybacks in case of jeopardy, see section 6164(h).

§ 6864

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