Resources  ❯  Accounting Terms

Jeopardy

[JEP-er-dee]

What is the definition of Jeopardy?
In the context of tax collection, jeopardy refers to a situation where the IRS believes that the collection of tax is at risk of being uncollected, prompting immediate assessment and collection of such tax without the intermediate procedural steps.
Using Jeopardy in an Example

When a taxpayer suddenly decides to liquidate assets and move funds offshore, the IRS may invoke a jeopardy assessment to immediately collect estimated taxes, bypassing usual collection steps to prevent loss of tax revenue.

Using Jeopardy in a sentence

The accountant warned the client about potential jeopardy assessments if they proceeded with transferring large sums of money right before the tax deadline.

Related Terms

Job Order

A customer request for a specific quantity of products that are designed and manufactured to unique specifications.
Learn More

Joint Return

A tax return filed by married taxpayers or surviving spouses, combining their incomes, exemptions, deductions, and credits on a single form.
Learn More

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. Each of the participants is responsible for profits, losses, and costs associated with the venture.
Learn More

Journal

A book or digital record in which all daily financial transactions are initially recorded in chronological order.
Learn More

Journal Entry

A record in the general journal that documents a single financial transaction, detailing the accounts affected and the amounts involved.
Learn More

Junk Bonds

Debt securities issued by companies with higher than normal credit risk, classified as 'non-investment grade' bonds. These securities typically offer a higher rate of interest to compensate for the increased risk.
Learn More

Just-In-Time

An inventory management philosophy in which resources, including materials, personnel, and facilities, are utilized only as needed, with the goal of minimizing waste and increasing efficiency.
Learn More

1031 Question? Ask ARTE

Deferred's AI 1031 Research Assistant is trained on 8,000+ pages of US tax law and outperforms human CPAs by 22%+

CHAT NOW
Deferred.com Resources

Recent Posts

Can you 1031 exchange a vacation home?
Because the 1031 Exchange rules permit owners to use the property part of the year, exchangers can have a cash-flowing, appreciating investment that also serves as their semi-permanent vacation property.
Aaron LaRue
1031 Improvement Exchange
Learn how to leverage an improvement exchange (using exchange funds for new constructions, additions, or upgrades) to increase the value of your real estate investment portfolio.
Aaron LaRue
1031 Exchange Options
Take advantage of our profit-generating ideas to use the 1031 Exchange to make your property portfolio more profitable.
Aaron LaRue
What are the disadvantages of a 1031 exchange?
The 1031 Exchange is a great way for businesses and investors to take advantage of the additional value of their real estate and put it into their next purchase, but are there tradeoffs to consider?
Aaron LaRue
What Happens to Depreciation in a 1031 Exchange?
Depreciation recapture is a process then enables the IRS to collect taxes on the financial gain you have made from the sale of an asset. Exactly what depreciation recapture rate will apply will depend on your individual circumstances.
Aaron LaRue
Form 6252: Report an Installment Sale
Use this form to report income from an installment sale on the installment method.
Aaron LaRue
About DeferredReviewsPricingSchedule Intro Call
Partner with DeferredCareersEngineering Blog
ResourcesARTE: AI Tax AssistantDeferred Gains Calculator1031 Exchange Articles
Accounting Terms1031 Rules per StateFind a 1031 Intermediary
© 2024 Deferred Inc.
Terms PrivacyCommunicationsContact