Authority for making
(a) If the Director believes that the assessment or collection of a deficiency, as defined in section 941 of this title, will be jeopardized by delay, he shall, notwithstanding the provisions of section 943(a) of this title, immediately assess such deficiency (together with all interest, additional amounts, and additions to the tax provided for by law), and notice and demand shall be made by the Director for the payment thereof.
Deficiency letters
(b) If the jeopardy assessment is made before any notice in respect of the tax to which the jeopardy assessment relates has been mailed under section 942(a), then the Director shall mail a notice under such subsection within 60 days after the making of the assessment.
Amount assessable before decision of the district court
(c) The jeopardy assessment may be made in respect of a deficiency greater or less than that notice of which has been mailed to the taxpayer, despite the provisions of section 942(c) of this title prohibiting the determination of additional deficiencies, and whether or not the taxpayer has theretofore filed a petition with the district court. The Director may, at any time before the decision of the district court is rendered, abate such assessment, or any unpaid portion thereof, to the extent that he believes the assessment to be excessive in amount. The Director shall notify the district court of the amount of such assessment, or abatement, if the petition is filed with the district court before the making of the assessment or is subsequently filed, and the district court shall have jurisdiction to redetermine the entire amount of the deficiency and of all amounts assessed at the same time in connection therewith.
Amount assessable after decision of the district court
(d) If the jeopardy assessment is made after the decision of the district court is rendered, such assessment may be made only in respect of the deficiency determined by the district court in its decision.
Expiration of right to assess
(e) A jeopardy assessment may not be made after the decision of the district court has become final or after the taxpayer has filed a petition for review of the decision of the district court.
Collection of unpaid amounts
(f) When the petition has been filed with the district court and when the amount which should have been assessed has been determined by a decision of the district court which has become final, then any unpaid portion, the collection of which has been stayed by bond as provided in section 1363(b) of this title shall be collected as part of the tax upon notice and demand from the Director, and any remaining portion of the assessment shall be abated. If the amount already collected exceeds the amount determined as the amount which should have been assessed, such excess shall be credited or refunded to the taxpayer as provided in section 1102 of this title, without the filing of claim therefor. If the amount determined as the amount which should have been assessed, such excess shall be credited or refunded to the taxpayer as provided in section 1102 of this title, without the filing of claim therefor. If the amount determined as the amount which should have been assessed is greater than the amount actually assessed, then the difference shall be assessed and shall be collected as part of the tax upon notice and demand from the Director.
Abatement if jeopardy does not exist
(g) The Director may abate the jeopardy assessment if he finds that jeopardy does not exist. Such abatement may not be made after a decision of the district court in respect of the deficiency has been rendered, or, if no petition is filed with the district court, after the expiration of the period for filing such petition. The period of limitation on the making of assessments and levy or a proceeding in court for collection, in respect of any deficiency, shall be determined as if the jeopardy assessment so abated had not been made, except that the running of such period shall in any event be suspended for the period from the date of such jeopardy assessment until the expiration of the 10th day after the day on which such jeopardy assessment is abated.