While most states have extensive statutory and regulatory authority providing for ordinary assessment and collection procedures, there are certain situations in which the state authorities determine that those assessment and collection efforts will be ineffective. These situations may include circumstances in which there is evidence that a taxpayer intends to leave the state or remove all property from the state, that there is an intent to discontinue a business in the state without adequate provision for payment of taxes, that there is an illegal enterprise operating as part of the "underground economy," or that the taxpayer performs any act tending to prejudice or jeopardize the state's ability to compute, assess, or collect any state tax. Although most practitioners do not experience application of the jeopardy assessment provisions on a day-to-day basis, it is important to maintain an awareness of the provisions, since the circumstances in which they are applied contain many pitfalls for practitioners who are unaware of the nuances of the provisions.
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2-30 Bender's State Taxation: Principles and Practice § 30.04