Bond to stay collection
(a) When a jeopardy assessment has been made under section 1361 or 1362 of this title, the collection of the whole or any amount of such assessment may be stayed by filing with the Director, within such time as may be fixed by regulations prescribed by the Director, a bond in an amount equal to the amount as to which the stay is desired, conditioned upon the payment of the amount (together with interest thereon) the collection of which is stayed, at the time at which, but for the making of the jeopardy assessment, such amount would be due. Upon the filing of the bond the collection of so much of the amount assessed as is covered by the bond shall be stayed. The taxpayer shall have the right to waive such stay at any time in respect of the whole or any part of the amount covered by the bond, and if as a result of such waiver any part of the amount covered by the bond is paid, then the bond shall, at the request of the taxpayer, be proportionately reduced. If any portion of the jeopardy assessment is abated, the bond shall, at the request of the taxpayer, be proportionately reduced.
Further conditions in case of income taxes
(b) In the case of taxes subject to the jurisdiction of the district court—
(1) Prior to petition to the district court. If the bond is given before the taxpayer has filed his petition under section 943(a) of this title, the bond shall contain a further condition that if a petition is not filed within the period provided in such section, then the amount, the collection of which is stayed by the bond, will be paid on notice and demand at any time after the expiration of such period, together with interest thereon from the date of the jeopardy notice and demand to the date of notice and demand under this paragraph.
(2) Effect of district court decision. The bond shall be conditioned upon the payment of so much of such assessment (collection of which is stayed by the bond) as is not abated by a decision of the district court which has become final. If the district court determines that the amount assessed is greater than the amount which should have been assessed, then when the decision of the district court is rendered the bond shall, at the request of the taxpayer, be proportionately reduced.
(3) Stay of sale or seized property pending district court decision.
(A) General rule. Where, notwithstanding the provisions of section 943(a) of his title, a jeopardy assessment has been made under section 1361 of this title the property seized for the collection of the tax shall not be sold—
(i) if section 1361(b) of this title is applicable, prior to the issuance of the notice of deficiency and the expiration of the time provided in section 943(a) of this title for filing petition with the district court, and
(ii) if petition is filed with the district court (whether before or after the making of such jeopardy assessment under section 1361 of this title), prior to the expiration of the period during which the assessment of the deficiency would be prohibited if section 1361(a) of this title were not applicable.
(B) Exceptions. Such property may be sold if—
(i) the taxpayer consents to the sale,
(ii) the Director 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 1056 of this title.