Revenue and Taxation Code — Part 8 | RTC — United States — California law | Esheria

Revenue and Taxation Code

Part 8 of 36 · provisions 1,401–1,600

This section says the act is known as the Revenue and Taxation Code.

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Starting in the 1995–96 fiscal year, county-assessed property rights or interests must be placed in a separate countywide tax rate area, and the tax rate is calculated using the rates from Section 100. This section suspends a specified California constitutional subparagraph for the 2009–10 fiscal year. This section requires the county auditor to reduce certain 2009–10 property tax apportionments, transfer the reduction amounts to a county fund, and report the calculations. It also lets the Director of Finance grant limited hardship relief, requires later state reimbursement, and allows mandamus if reimbursement is not made on time. This section sets how certain railroad property tax value and revenues must be allocated among tax rate areas, counties, school entities, and related jurisdictions. Supplemental property tax revenues for 1985–86 and later years must be apportioned using the current year’s property tax apportionment factors.

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Provisions of Revenue and Taxation Code

Showing 200 of 7,200

  1. 19046.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Appeals and supporting documents must be mailed in duplicate to the State Board of Equalization, and the board must send copies to the Franchise Tax Board after receiving the appeal.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19046. Two copies of the appeal and two copies of any supporting documents shall be addressed and mailed to the State Board of Equalization at Sacramento, California. Upon receipt of the appeal, the board shall provide one copy of the appeal and one copy of any supporting documents to the Franchise Tax Board at Sacramento, California. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  2. 19047.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The board must hear and decide the appeal, then promptly notify the taxpayer and the Franchise Tax Board of its decision and reasons.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19047. The board shall hear and determine the appeal and thereafter shall forthwith notify the taxpayer and the Franchise Tax Board of its determination and the reasons therefor. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  3. 19048.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The board’s determination becomes final 30 days after it is made, unless a petition for rehearing is filed within that period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19048. The board’s determination becomes final upon the expiration of 30 days from the time of the determination unless within the 30-day period the taxpayer or the Franchise Tax Board files a petition for rehearing with the board. In that event the determination becomes final upon the expiration of 30 days from the time the board issues its opinion on the petition. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  4. 19049.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    When a deficiency assessment becomes final, the Franchise Tax Board must mail the taxpayer a notice and demand for payment, and the deficiency is due 15 days after that notice and demand. The notice must include a postmark.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19049. (a) When a deficiency is determined and the assessment becomes final, the Franchise Tax Board shall mail notice and demand to the taxpayer for the payment thereof. The deficiency assessed is due and payable at the expiration of 15 days from the date of the notice and demand. (b) The amendments made by Chapter 600 of the Statutes of 1997 are operative for notices issued on or after January 1, 1998. (c) The notice described in subdivision (a) shall be mailed in a manner that includes a postmark. For purposes of this subdivision, postmark means a postal marking made on a letter, package, or postcard indicating the date on which the item is delivered to the United States Postal Service. (d) The amendments made to this section by the act adding this subdivision are operative for notices issued on or after January 1, 2008. (Amended by Stats. 2007, Ch. 281, Sec. 2. Effective January 1, 2008.)
  5. 19050.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A certificate about mailing the notices in this article counts as prima facie evidence of the deficiency assessment and the giving of the notices.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19050. A certificate by the Franchise Tax Board or of the board, as the case may be, of the mailing of the notices specified in this article is prima facie evidence of the assessment of the deficiency and of the giving of the notices. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  6. 19051.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A tax amount overstated because of a mathematical error, after notice is mailed to the taxpayer, is not treated as a deficiency assessment.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19051. Any amount of tax in excess of that disclosed by the return, due to a mathematical error, notice of which has been mailed to the taxpayer, is not a deficiency assessment. The taxpayer has no right of protest or appeal based on that notice; however, the amount of tax erroneously omitted in the return may be assessed and collected in the manner provided in this part as in the case of deficiency assessments. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  7. 19052.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Claimants can claim a refund of adjusted amounts, and the adjustments may be made under Section 19054.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19052. Notwithstanding any other provision of this part to the contrary, adjustments to refundable credits (including credits claimed on or after January 1, 2001, in accordance with Section 17052.6) may be made pursuant to Section 19054, and claimants shall have the right to claim a refund of adjusted amounts within the period provided in Section 19306, 19307, 19308, or 19311, whichever period expires later. (Amended by Stats. 2002, Ch. 374, Sec. 5. Effective January 1, 2003.)
  8. 19054.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board may assess overstated income-tax withholding credits or estimated tax payments on a return or refund claim, but it may not assess unpaid estimated tax amounts under Sections 19025 or 19136.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19054. (a) If on any return or claim for refund of taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001), there is an overstatement of the credit for income tax withheld, or of the amount paid as estimated income tax, the amount so overstated which is allowed against the tax shown on the return or which is allowed as a credit or refund may be assessed by the Franchise Tax Board in the same manner as is provided by Section 19051 in the case of a mathematical error appearing on the return. (b) No unpaid amount of estimated tax under Section 19025 or 19136 shall be assessed. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  9. 19057.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A proposed deficiency assessment notice generally must be mailed to the taxpayer within four years after the return is filed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19057. (a) Except in the case of a false or fraudulent return and except as otherwise expressly provided in this part, every notice of a proposed deficiency assessment shall be mailed to the taxpayer within four years after the return was filed. No deficiency shall be assessed or collected with respect to the year for which the return was filed unless the notice is mailed within the four-year period or the period otherwise provided. For purposes of this chapter, the term “return” means the return required to be filed by the taxpayer and does not include a return of any person from whom the taxpayer has received an item of income, gain, loss, deduction, or credit. (b) The running of the period of limitations provided in subdivision (a) on mailing a notice of proposed deficiency assessment shall, in a case under Title 11 of the United States Code, be suspended for any period during which the Franchise Tax Board is prohibited by reason of that case from mailing the notice of proposed deficiency assessment and for 60 days thereafter. (c) Where, within the 60-day period ending on the day on which the time prescribed in this section for the assessment of any tax imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) for any taxable year would otherwise expire, the Franchise Tax Board receives a written document, other than an amended return or a report required by Section 18622, signed by the taxpayer showing that the taxpayer owes an additional amount of that tax for that taxable year, the period for the assessment of an additional amount in excess of the amount shown on either an original or amended return shall not expire before the day 60 days after the day on which the Franchise Tax Board receives that document. (d) If a taxpayer determines in good faith that it is an exempt organization and files a return as an exempt organization under Section 23772, and if the taxpayer is thereafter held to be a taxable organization for the taxable year for which the return is filed, that return shall be deemed the return of the organization for the purposes of this section. (Amended by Stats. 1999, Ch. 83, Sec. 175. Effective January 1, 2000.)
  10. 19058.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section lets the tax authority mail a proposed deficiency notice within six years after a return is filed when a taxpayer omits more than 25% of gross income, and lets a corporation be sued for tax collection without assessment within the same six-year period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19058. (a) If the taxpayer omits from gross income an amount properly includable therein which is in excess of 25 percent of the amount of gross income stated in the return, a notice of a proposed deficiency assessment may be mailed to the taxpayer within six years after the return was filed. Additionally, in the case of a corporation, a proceeding in court for the collection of the tax may be commenced without assessment at any time within six years after the return was filed. (b) For purposes of this section, all of the following shall apply: (1) In the case of a trade or business, the term “gross income” means the total of the amounts received or accrued from the sale of goods or services (if the amounts are required to be shown on the return) prior to diminution by the cost of the sales or service. (2) An understatement of gross income by reason of an overstatement of unrecovered cost or other basis is an omission from gross income. (3) In determining the amount omitted from gross income, other than in the case of an overstatement of unrecovered cost or other basis, there shall not be taken into account any amount which is omitted from gross income stated in the return if the amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the Franchise Tax Board of the nature and amount of the item. (Amended by Stats. 2025, Ch. 231, Sec. 67. (SB 711) Effective October 1, 2025.)
  11. 19059.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section sets deadlines for mailing a proposed deficiency assessment notice after certain federal tax changes or amended returns are filed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19059. (a) If a taxpayer is required by subdivision (a) of Section 18622 to report a change or correction by the Commissioner of Internal Revenue or other officer of the United States or other competent authority and does report the change or correction within six months after the final federal determination, or the Internal Revenue Service reports that change or correction within six months after the final federal determination, a notice of proposed deficiency assessment resulting from those adjustments may be mailed to the taxpayer within two years from the date when the notice is filed with the Franchise Tax Board by the taxpayer or the Internal Revenue Service, or within the periods provided in Section 19057, 19058, or 19065, whichever period expires later. (b) If a taxpayer is required by subdivision (b) of Section 18622 to file an amended return and does file the return within six months of filing an amended return with the Commissioner of Internal Revenue, a notice of proposed deficiency assessment in excess of the self-assessed tax on the amended return, and resulting from the adjustments may be mailed to the taxpayer within two years from the date when the amended return is filed with the Franchise Tax Board by the taxpayer, or within the periods provided in Section 19057, 19058, or 19065, whichever period expires later. (Amended by Stats. 1999, Ch. 987, Sec. 71. Effective October 10, 1999. Applicable, by Sec. 105 of Ch. 987, to federal determinations that become final on or after January 1, 2000.)
  12. 19060.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section allows the Franchise Tax Board to mail a proposed deficiency assessment notice after certain reported tax changes or corrections, with one branch allowing mailing at any time and another allowing mailing within four years.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19060. (a) If a taxpayer fails to report a change or correction by the Commissioner of Internal Revenue or other officer of the United States or other competent authority or fails to file an amended return as required by Section 18622, a notice of proposed deficiency assessment resulting from the adjustment may be mailed to the taxpayer at any time. (b) If, after the six-month period required in Section 18622, a taxpayer or the Internal Revenue Service reports a change or correction by the Commissioner of Internal Revenue or other officer of the United States or other competent authority or files an amended return as required by Section 18622, a notice of proposed deficiency assessment resulting from the adjustment may be mailed to the taxpayer within four years from the date the taxpayer or the Internal Revenue Service notifies the Franchise Tax Board of that change or correction or files that return. (Amended by Stats. 1999, Ch. 987, Sec. 72. Effective October 10, 1999. Applicable, by Sec. 105 of Ch. 987, to federal determinations that become final on or after January 1, 2000.)
  13. 19061.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    For certain listed deficiencies, the deficiency may be assessed at any time before the deadline in the cited tax provisions expires.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19061. In case of a deficiency described in Sections 24945 and 24946, and in Sections 1033(a)(2)(C) and 1033(a)(2)(D) of the Internal Revenue Code, the deficiency may be assessed at any time prior to the expiration of the time therein provided. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  14. 19063.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    For certain California tax deficiencies tied to partnership items, the assessment period cannot expire before the later of two dates: five years after the partnership return was filed, or one year after required information is furnished to the Franchise Tax Board if the taxpayer’s name or address was not on the return.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19063. (a) In the case of any tax imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) with respect to any person, the period for assessing a deficiency attributable to any partnership item of a federally registered partnership shall not expire before the later of the following: (1) The date which is five years after the date on which the partnership return of the federally registered partnership for the partnership taxable year in which the item arose was filed (or later, if the date prescribed for filing the return). (2) If the name or address of the person does not appear on the partnership return, the date which is one year after the date on which the information is furnished to the Franchise Tax Board in the manner and at the place as it may prescribe. (b) For purposes of this section, “partnership item” means both of the following: (1) Any item required to be taken into account for the partnership taxable year under any provision of subchapter K of Chapter 1 of Title 26 of the Internal Revenue Code to the extent that regulations prescribed by the Franchise Tax Board provide that for purposes of this part that item is more appropriately determined at the partnership level than at the partner level. (2) Any other item to the extent affected by an item described in paragraph (1). (c) The extensions referred to in subsection (c)(4) of Section 6501 of the Internal Revenue Code, insofar as they relate to partnership items, may, with respect to any person, be consented by either of the following: (1) Except to the extent the Franchise Tax Board is otherwise notified by the partnership, by a general partner of the partnership. (2) By any person authorized to do so by the partnership in writing. (d) For purposes of this section, “federally registered partnership” means, with respect to any partnership taxable year, any partnership for which either of the following apply: (1) Interests have been offered for sale at any time during that taxable year or a prior taxable year in any offering required to be registered with the Securities and Exchange Commission. (2) At any time during that taxable year or a prior taxable year, was subject to the annual reporting requirements of the Securities and Exchange Commission which relate to the protection of investors in the partnership. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  15. 19064.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    This section suspends certain limitations periods when a person challenges a subpoena or when a subpoena response remains unresolved.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19064. (a) If any person initiates a motion to quash a subpoena, as provided by Sections 7465 to 7476, inclusive, of the Government Code, and that person is the person with respect to whose liability the subpoena is issued (or is the agent, nominee, or other person acting under the direction or control of that person), then the running of any period of limitations under Section 19057 (relating to deficiency assessments), Section 19087 (relating to false or fraudulent returns), or Section 19704 (relating to criminal prosecutions) with respect to that person shall be suspended for the period during which a proceeding, and appeals therein, with respect to the enforcement of the subpoena is pending. (b) In the absence of the resolution of the subpoenaed person’s response to a subpoena issued under Section 19504 (power of examination), the running of any period of limitations under Section 19057 (relating to deficiency assessments), Section 19087 (relating to false or fraudulent returns), or Section 19704 (relating to criminal prosecutions) with respect to any person whose liability the subpoena was issued (other than a person taking action as provided by subdivision (a)) shall be suspended for the period beginning on the date which is six months after the service of the subpoena and ending with the final resolution of that response. (c) The amendments made by the act adding this subdivision are operative for any subpoena served after the effective date of the act adding this subdivision. (Amended by Stats. 1999, Ch. 931, Sec. 14. Effective October 10, 1999.)
  16. 19065.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If a taxpayer agrees to extend the federal deficiency-assessment period, the notice of proposed deficiency must be mailed within the later of two timing rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19065. If any taxpayer agrees with the United States Commissioner of Internal Revenue for an extension or renewals thereof of the period for proposing and assessing deficiencies in federal income taxes for any year, the period for mailing a notice of a proposed deficiency shall be four years after the return was filed or six months after the date of the expiration of the agreed period for assessing deficiencies in the federal income tax, whichever period expires the later. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  17. 19066.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Certain early-filed tax returns and tax payments are treated as filed or paid on the legal due date.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19066. (a) For the purposes of Sections 19057, 19058, and 19065, a return of tax imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) except a return required by Article 5 (commencing with Section 18661) of Chapter 2 (relating to withholding), filed before the last day prescribed by law for filing (determined without regard to any extension of time for filing the return), shall be considered as filed on that day. For purposes of Section 19306, payment of any portion of the tax made before the last day prescribed for the payment of the tax shall be considered made on the last day. (b) For purposes of this section, if a return required by Article 5 (commencing with Section 18661) of Chapter 2 (relating to withholding) or a return of tax imposed by Section 13020 of the Unemployment Insurance Code (relating to withholding tax on wages), for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, that return shall be considered filed on April 15 of that calendar year. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  18. 19066.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    For certain reported information, the tax assessment period does not expire before four years after the Franchise Tax Board receives the required report, if the tax relates to that reported event or period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19066.5. In the case of any information that is required to be reported to the Franchise Tax Board under Section 19141.2 or 19141.5, the time for assessment of any tax imposed by Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part with respect to any event or period to which that information relates shall not expire before the date that is four years after the date on which the Franchise Tax Board is furnished the information required to be reported under Section 19141.2 or 19141.5, or within the periods provided in Section 19057, 19058, 19059, 19060, 19065, 24945, 24946, Section 1033(a)(2)(C) of the Internal Revenue Code, or Section 1033(a)(2)(D) of the Internal Revenue Code, whichever period expires later. (Added by Stats. 1998, Ch. 322, Sec. 49. Effective August 20, 1998.)
  19. 19067.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If the taxpayer agrees in writing before the notice deadline, the assessment deadline may be extended, and the Franchise Tax Board must tell the taxpayer they can refuse or limit the extension.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Deficiency Assessments [19031 - 19067] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19067. (a) Where before the expiration of the time prescribed for the mailing of a notice of a proposed deficiency assessment, the taxpayer consents in writing to an assessment after that time, the assessment may be made at any time prior to the expiration of the period agreed upon. The period agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. (b) The Franchise Tax Board shall notify the taxpayer of the taxpayer’s right to refuse to extend the expiration of the time prescribed for the mailing of a notice of a proposed deficiency assessment, or to limit that extension to a particular period of time, on each occasion when the taxpayer is requested to provide the taxpayer’s consent. (c) The amendments made by the act adding this subdivision shall apply to any request to extend the expiration of the time prescribed for the mailing of a notice of a proposed deficiency assessment made after December 31, 2000. (Amended by Stats. 1999, Ch. 931, Sec. 15. Effective October 10, 1999.)
  20. 19071.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Assessments against Persons Secondarily Liable [19071 - 19074] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Taxes owed by a taxpayer can be assessed against another liable person, and the limitations period can be suspended after notice to the taxpayer while the taxpayer pursues certain administrative remedies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Assessments against Persons Secondarily Liable [19071 - 19074] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19071. The taxes imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) upon any taxpayer other than a transferee for which any person other than the taxpayer is liable may be assessed against that person in the manner provided for the assessment of deficiencies. The taxes may be assessed at any time within which deficiency assessments may be made against the taxpayer; provided, however, the running of the period of limitations upon the assessment of the liability imposed upon any person other than the taxpayer shall, after the mailing of the notice provided for in Section 19033 to the taxpayer, be suspended for the period during which the taxpayer exercises an administrative remedy as provided in Section 19041, 19045, or 19048. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  21. 19072.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Assessments against Persons Secondarily Liable [19071 - 19074] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Tax-collection rules for this part apply to a person secondarily liable the same way they apply to the taxpayer.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Assessments against Persons Secondarily Liable [19071 - 19074] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19072. The provisions of this part respecting the collection of taxes apply to the collection of the taxes from the person secondarily liable to the same extent and with the same force and effect as though that person were the taxpayer. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  22. 19073.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Assessments against Persons Secondarily Liable [19071 - 19074] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Certain transferee and fiduciary liabilities are assessed, collected, and paid like a tax deficiency, subject to this section and Section 19074.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Assessments against Persons Secondarily Liable [19071 - 19074] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19073. The amounts of the following liabilities, except as hereinafter provided in this section and Section 19074, shall be assessed, collected, and paid in the same manner and subject to the same provisions and limitations as in the case of a deficiency (including the provisions in the case of a delinquency in payment after notice and demand, the provisions authorizing proceedings in court for collection, and the provisions prohibiting claims and suits for refunds): (a) The liability, at law or in equity, of a transferee of property of a taxpayer, in respect of the tax (including interest, additional amounts, and additions to the tax provided by law) imposed upon the taxpayer. (b) The liability of a fiduciary under Part 10 (commencing with Section 17001) in respect of the payment of any such tax from the estate of the taxpayer. Any such liability may be either as to the amount of tax shown on the return or as to any deficiency in tax. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  23. 19074.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Assessments against Persons Secondarily Liable [19071 - 19074] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    This section sets time limits for assessing liability against transferees and fiduciaries, with extensions, written-consent adjustments, and a suspension rule tied to certain taxpayer remedies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Assessments against Persons Secondarily Liable [19071 - 19074] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19074. The period of limitation for assessment of the liability of any person other than the taxpayer who is a transferee or fiduciary of the taxpayer shall be as follows: (a) In the case of the liability of an initial transferee of the property of the taxpayer, within one year after the expiration of the period of limitation for assessment against the taxpayer. (b) In the case of the liability of a transferee of a transferee of the property of the taxpayer, within one year after the expiration of the period of limitation for assessment against the preceding transferee, but only if within three years after the expiration of the period of limitation for assessment against the taxpayer; except that if before the expiration of the period of limitation for the assessment of the liability of the transferee of a transferee, a court proceeding for the collection of the tax or liability in respect thereof has been begun against the taxpayer or last preceding transferee, respectively, then the period of limitation for assessment of the liability of the transferee of a transferee shall expire one year after the return of execution in the court proceeding. (c) In the case of the liability of a fiduciary, not later than one year after the liability arises or not later than the expiration of the period for collection of the tax in respect of which the liability arises, whichever is the later; (d) Where before the expiration of the time prescribed in subdivision (a), (b) or (c) for the assessment of the liability, both the Franchise Tax Board and the transferee or fiduciary have consented in writing to its assessment after that time, the liability may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. (e) Notwithstanding any of the above subdivisions, the running of the period of limitations upon the assessment of liability against any transferee shall be suspended for the period during which the taxpayer exercises an administrative remedy as provided in Section 19041, 19045, or 19048. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  24. 19081.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If the Franchise Tax Board thinks tax assessment or collection will be delayed and jeopardized, it may notify the taxpayer or transferee and demand immediate payment.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19081. If the Franchise Tax Board finds that the assessment or the collection of a tax or a deficiency for any year, current or past, will be jeopardized in whole or in part by delay, it may mail or issue notice of its findings to the taxpayer, or its transferee or transferees, together with a demand for immediate payment of the tax or the deficiency declared to be in jeopardy, including interest and penalties and additions thereto. Any assessment issued under this article shall also be an assessment issued pursuant to Section 19033, if an assessment has not already been issued pursuant to Section 19033 with respect to that taxable year for that amount. (Amended by Stats. 2000, Ch. 862, Sec. 13. Effective January 1, 2001.)
  25. 19082.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If the Franchise Tax Board thinks delay would jeopardize collection or assessment of a current-period tax, it may end the taxpayer’s taxable period immediately and must notify the taxpayer and demand a return and immediate payment.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19082. In the case of a tax for a current period, if the Franchise Tax Board finds that the assessment or collection of the tax will be jeopardized in whole or in part by delay, the Franchise Tax Board may declare the taxable period of the taxpayer immediately terminated. The Franchise Tax Board shall mail or issue notice of its finding and declaration to the taxpayer, together with a demand for a return and immediate payment of the tax based on the period declared terminated, including therein income accrued and deductions incurred up to the date of termination if not otherwise properly includible or deductible in respect of the period, and the tax shall be immediately due and payable whether or not the time otherwise allowed by law for filing the return and paying the tax has expired. (Amended by Stats. 2000, Ch. 862, Sec. 14. Effective January 1, 2001.)
  26. 19083.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A jeopardy assessment is immediately due, and the Franchise Tax Board may begin collection right away.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19083. (a) A jeopardy assessment is immediately due and payable, and proceedings for collection may be commenced at once. (b) The collection of the whole or any amount of a jeopardy assessment may be stayed, at any time before the assessment becomes final, by filing with the Franchise Tax Board: (1) a bond in an amount equal to the amount (together with interest thereon to the date of payment) as to which the stay is desired, conditioned upon the payment of the amount, the collection of which is stayed by the bond, upon notice and demand by the Franchise Tax Board after the assessment becomes final; or (2) other security in the amount as the Franchise Tax Board may deem necessary, not exceeding double the amount (together with interest thereon to the date of payment) as to which the stay is desired. (c) Upon the filing of the bond or other security the collection of so much of the amount assessed as is covered by the bond or other security shall be stayed. The taxpayer shall have the right to waive the stay at any time in respect of the whole or any part of the amount covered by the bond or other security, and if as a result of the waiver any part of the amount covered by the bond or other security is paid, then the bond or other security shall, at the request of the taxpayer, be proportionately reduced. If any portion of the jeopardy assessment is abated, the bond or other security shall, at the request of the taxpayer, be proportionately reduced. (d) The Franchise Tax Board, prior to the time the assessment becomes final, may stay collection of the whole or any amount of a jeopardy assessment if it finds that jeopardy does not exist. (e) Where collection of the whole or any amount of a jeopardy assessment has been stayed under this section, the period of limitation on any action to collect shall be tolled during the time of the stay. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  27. 19084.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section limits jeopardy assessments and levies unless the Franchise Tax Board’s Chief Counsel (or delegate) personally approves them in writing, and it sets short deadlines for notices, review requests, appeals, and court actions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19084. (a) (1) (A) Unless the Chief Counsel of the Franchise Tax Board (or the chief counsel’s delegate) personally approves (in writing) the assessment or levy, no assessment shall be made under this article and no levy shall be issued less than 30 days after either of the following: (i) A notice and demand is mailed or issued for payment pursuant to Section 19081. (ii) Notice and demand for a return and payment is mailed or issued pursuant to Section 19082. (B) Within five days after the day on which either a notice and demand for payment is mailed or issued pursuant to Section 19081, or notice and demand for a return and payment is mailed or issued pursuant to Section 19082, the Franchise Tax Board shall mail or issue the taxpayer a written statement of the information upon which the Franchise Tax Board relies in issuing that notice and demand. (2) Within 30 days after the day on which the taxpayer is furnished the written statement described in paragraph (1), or within 30 days after the last day of the period within which the statement is required to be furnished, the taxpayer may petition the Franchise Tax Board to review whether its finding pursuant to Section 19081 or 19082 is reasonable under the circumstances, specifying the grounds on which the petition is based. The filing of a petition for review shall not operate to stay collection. Collection may be stayed only as provided in Section 19083. A petition filed pursuant to this paragraph shall also be considered a protest filed pursuant to Section 19041 against the proposed additional tax. (3) If a petition for review under paragraph (2) is not made within the 30-day period set forth in that paragraph, the finding of the Franchise Tax Board pursuant to Section 19081 or 19082 is final. (4) After a petition for review is filed under paragraph (2), the Franchise Tax Board shall determine whether or not the issuance of notice and demand under Section 19081 or 19082 is reasonable under the circumstances. In making this determination, the Franchise Tax Board shall grant the taxpayer or authorized representative an oral hearing if the taxpayer has so requested in the petition. Chapter 4.5 (commencing with Section 11400) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to a hearing under this paragraph. The burden of proof with respect to whether a jeopardy exists as to collection or an assessment is upon the Franchise Tax Board. (5) The Franchise Tax Board shall make the determination under paragraph (4) within 90 days of the filing of the petition for review unless the taxpayer requests, in writing, additional time. (6) In making the determination required by paragraph (4), the Franchise Tax Board shall consider all relevant factors, including, but not limited to, the likelihood that collection will be jeopardized, the assets of the taxpayer, and the amount of the assessment as it relates to whether jeopardy status exists. The burden of proof as to the amount of the assessment for purposes of determining jeopardy status is upon the taxpayer. (b) (1) Within 60 days after the earlier of the following days, the taxpayer may appeal the determination to the State Board of Equalization in the manner provided in Section 19085: (A) The day the Franchise Tax Board notifies the taxpayer of the determination described in paragraph (4) of subdivision (a). (B) One day after the time period prescribed by paragraph (5) of subdivision (a) for the Franchise Tax Board to make its determination. (2) If an appeal is not filed before the expiration of the time periods, the Franchise Tax Board’s determination is final. Filing of an appeal shall not operate to stay collection. Collection may be stayed only as provided in Section 19083. (3) Within 60 days after an appeal is filed under paragraph (1), the board shall determine whether the issuance of notice and demand under Section 19081 or 19082 is reasonable under the circumstances. The burden of proof with respect to whether a jeopardy exists as to collection or an assessment is upon the Franchise Tax Board. (4) If the board determines that a jeopardy status does not apply to all or part of the assessment, the board may modify the amount of the assessment to which the jeopardy attaches. If the board does not act within the time period provided in paragraph (3) as modified by paragraph (6), the board will be deemed to have denied the taxpayer’s appeal. (5) In making the determination required by paragraph (3), the board shall consider all relevant factors, including, but not limited to, the likelihood that collection will be jeopardized, the assets of the taxpayer, and the amount of the assessment as it relates to whether jeopardy status exists. The burden of proof as to the amount of the assessment for purposes of determining jeopardy status is upon the taxpayer. (6) If either party requests an extension of the 60-day period set forth in paragraph (3) and establishes reasonable grounds why the extension should be granted, the board may grant an extension of not more than 30 additional days. (c) (1) Within 60 days after the earlier of the following days, either party may bring a civil action against the other in superior court for a judicial determination as to whether or not the issuance of the notice and demand under Section 19081 or 19082 is reasonable under the circumstances: (A) The day the board notifies the taxpayer of its determination described in paragraph (3), as modified by paragraph (6), of subdivision (b). (B) If the board fails to make a timely determination, then one day after the time prescribed for the board to make its determination. (2) If a civil action under this subdivision is not commenced within the 60-day period set forth in paragraph (1), the board’s determination is final. The filing of the civil action shall not operate to stay collection. Collection shall be stayed only as provided by Section 19083. (3) Within 60 days after proper service is made, the superior court shall determine whether the issuance of notice and demand under Section 19081 or 19082 is reasonable under the circumstances. The burden of proof with respect to whether a jeopardy exists as to collection or an assessment is upon the Franchise Tax Board. (4) If the court determines that a jeopardy status does not apply to all or part of the assessment, the court may modify the amount of the assessment to which the jeopardy attaches. (5) In making the determination required by paragraph (3), the superior court shall consider all relevant factors, including, but not limited to, the likelihood that collection will be jeopardized, the assets of the taxpayer, and the amount of the assessment as it relates to whether jeopardy status exists. The burden of proof as to the amount of the assessment for purposes of determining jeopardy status is upon the taxpayer. (6) If either party in the action requests an extension of the 60-day period set forth in paragraph (3) of subdivision (c) and establishes reasonable grounds why the extension should be granted, the superior court may grant an extension of not more than 30 additional days. (7) Actions filed pursuant to this section shall be filed in the Superior Court of the County of Los Angeles, the City and County of San Francisco, the County of San Diego, or the County of Sacramento. Sections 19387 and 19389 shall apply to those actions. (8) The determination made by a superior court under this section shall be final and conclusive and shall not be reviewed by any other court. (d) The amendments made by the act adding this subdivision are operative for taxes assessed and levies made after the effective date of the act adding this subdivision. (Amended by Stats. 1999, Ch. 931, Sec. 16. Effective October 10, 1999.)
  28. 19085.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A taxpayer may appeal to the board from the Franchise Tax Board’s action on a petition for review.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19085. The taxpayer may appeal to the board from the Franchise Tax Board’s action on the petition for review. The appeal shall be made in the manner prescribed by Section 19046. Article 3 (commencing with Section 19031) of Chapter 4 relating to an appeal from the action of the Franchise Tax Board on a protest against an additional tax proposed to be assessed applies to the appeal. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  29. 19086.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    In tax enforcement proceedings under this article, the Franchise Tax Board’s Section 19081 finding is presumptive evidence that the tax assessment or collection was in jeopardy.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19086. In any proceeding brought to enforce payment of taxes made due and payable by this article, the finding of the Franchise Tax Board under Section 19081, whether made after notice to the taxpayer or not, is for all purposes presumptive evidence that the assessment or collection of the tax or the deficiency was in jeopardy. A certificate of the Franchise Tax Board of the mailing or issuing of the notices specified in this article is presumptive evidence that the notices were mailed or issued. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  30. 19087.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If a taxpayer does not file a return or files a false or fraudulent return to evade tax, the Franchise Tax Board may require a return or amended return, estimate income, and propose an assessment. The taxpayer can protest, request an oral hearing, and appeal, but must follow the procedure and timing rules in related sections.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19087. (a) If any taxpayer fails to file a return, or files a false or fraudulent return with intent to evade the tax, for any taxable year, the Franchise Tax Board, at any time, may require a return or an amended return under penalties of perjury or may make an estimate of the net income, from any available information, and may propose to assess the amount of tax, interest, and penalties due. All the provisions of this part relative to delinquent taxes shall be applicable to the tax, interest, and penalties computed hereunder. (b) When any assessment is proposed under subdivision (a), the taxpayer shall have the right to protest the same and to have an oral hearing thereon if requested, and also to appeal to the board from the Franchise Tax Board’s action on the protest; the taxpayer must proceed in the manner and within the time prescribed by Sections 19041 to 19048, inclusive. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  31. 19088.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board may immediately assess certain tax deficiencies when a receiver is appointed for a taxpayer, and in some bankruptcy-related cases under Title 11 if the deficiency has not already been assessed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19088. (a) On the appointment of a receiver for any taxpayer in any receivership proceeding before any court of the United States or of any state or territory or of the District of Columbia, any deficiency (together with all interest, additional amounts, or additions to the tax provided for by law) determined by the Franchise Tax Board in respect of a tax upon the taxpayer may be immediately assessed. (b) Any deficiency (together with all interest, additional amounts, and additions to the tax provided by law) determined by the Franchise Tax Board in respect of a tax on either of the following: (1) The debtor’s estate in a case under Title 11 of the United States Code. (2) The debtor, but only if liability for the tax has become res judicata pursuant to a determination in a case under Title 11 of the United States Code, may be immediately assessed if that deficiency has not previously been assessed in accordance with law. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  32. 19089.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Certain trustees, receivers, assignees, or similar fiduciaries must notify the Franchise Tax Board of their qualification when required by regulation; the Board may also create exemptions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19089. (a) Every trustee in a case under Title 11 of the United States Code, receiver, assignee for the benefit of creditors or like fiduciary shall give notice of qualification as such to the Franchise Tax Board in the manner and at the time that may be required by regulations of the Franchise Tax Board. The Franchise Tax Board may by regulation provide for any exemptions from the requirements of this section that the Franchise Tax Board deems proper. (b) If the regulations issued pursuant to this section require the giving of any notice by any fiduciary in any case under Title 11 of the United States Code, or by a receiver in any other court proceeding to the Franchise Tax Board of qualification as such, the running of the period of limitations for mailing a notice of proposed deficiency assessment shall be suspended for the period from the date of the institution of the proceeding to a date 30 days after the date upon which the notice from the receiver or other fiduciary is received by the Franchise Tax Board; but the suspension under this section shall in no case be for a period in excess of two years. (Amended by Stats. 1999, Ch. 987, Sec. 73. Effective October 10, 1999.)
  33. 19090.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Claims for a tax deficiency and related amounts may be brought to the court handling the receivership or Title 11 case, even if an appeal is pending; in a receivership proceeding, no appeal may be filed with the board after the receiver is appointed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19090. (a) Claims for the deficiency and such interest, additional amounts and additions to the tax may be presented, for adjudication in accordance with law, to the court before which the receivership proceeding (or case under Title 11 of the United States Code) is pending, despite the pendency of an appeal to the board. (b) In the case of a receivership proceeding, no appeal shall be filed with the board after the appointment of the receiver. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  34. 19091.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

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    After a receivership proceeding ends, the taxpayer must pay any unpaid allowed claim amount when the Franchise Tax Board gives notice and demand.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19091. Upon notice and demand from the Franchise Tax Board after termination of the receivership proceeding, the taxpayer shall pay any portion of the claim allowed in the proceeding which is unpaid. The unpaid amount may be collected in the manner provided in this part for the collection of delinquent taxes at any time within six years after termination of the proceeding. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  35. 19092.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board may make rules and regulations needed to carry out this article.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19092. The Franchise Tax Board may prescribe rules and regulations necessary to properly carry out this article. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  36. 19093.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If someone holds more than $10,000 in cash and does not claim it in the stated ways, the law presumes it is that person’s gross income and that tax collection will be jeopardized.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5. Jeopardy Assessments [19081 - 19093] ( Article 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19093. (a) If the individual who is in physical possession of cash in excess of ten thousand dollars ($10,000) does not claim that cash in any of the capacities specified in paragraphs (1) and (2), then for purposes of Sections 19081 and 19082, it shall be presumed that the cash represents gross income of a single individual for the taxable year in which the possession occurs, and that the collection of tax will be jeopardized by delay: (1) The cash is not claimed as his or hers. (2) The cash is not claimed as belonging to another person whose identity the Franchise Tax Board can readily ascertain and who acknowledges ownership of that cash. (b) In the case of any assessment resulting from the application of subdivision (a), all of the following apply: (1) The entire amount of the cash shall be treated as taxable income for the taxable year in which the possession occurs. (2) That income shall be treated as taxable at the maximum rate under Section 17041. (3) Except as provided in subdivision (c), the possessor of the cash shall be treated (solely with respect to that cash) as the taxpayer for purposes of Chapter 4 (commencing with Section 19001) and Chapter 5 (commencing with Section 19201). (c) If, after an assessment resulting from the application of subdivision (a), that assessment is abated and replaced by an assessment against the owner of the cash, that later assessment shall be treated for purposes of all laws relating to lien, levy, and collection as relating back to the date of the original assessment. (d) For purposes of this section, the following definitions apply: (1) “Cash” includes any cash equivalent. (2) “Cash equivalent” means any of the following: (A) Foreign currency. (B) Any bearer obligation. (C) Any medium of exchange to which both of the following apply: (i) It is of a type which has been frequently used in illegal activities. (ii) It is specified as a cash equivalent for purposes of this part in regulations prescribed by the Franchise Tax Board. (3) Any cash equivalent shall be taken into account in the following manner: (A) In the case of a bearer obligation, at its face amount. (B) In the case of any other cash equivalent, at its fair market value. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  37. 191.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 4. Disaster Relief [181 - 191] ( Chapter 4 added by Stats. 1986, Ch. 16, Sec. 3. )

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    An eligible county may adopt an ordinance allowing deferral of certain unpaid supplemental roll taxes for eligible property damaged by February 1986 floods or storms, if the owner files a claim with the assessor by April 10, 1986.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 1. GENERAL PROVISIONS [101 - 198.1] ( Part 1 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 4. Disaster Relief [181 - 191] ( Chapter 4 added by Stats. 1986, Ch. 16, Sec. 3. ) ## 191. Each eligible county may adopt an ordinance to permit the deferral of unpaid nondelinquent supplemental roll taxes on eligible property reassessed pursuant to Chapter 3.5 (commencing with Section 75) of Part 0.5 which has sustained ten thousand dollars ($10,000) or more in damage as the result of floods or storms occurring in February 1986 if the owner files a claim for deferral on or before April 10, 1986, with the assessor. The corrected supplemental bill shall be due on the last day of the month following the month in which the corrected bill is mailed or the delinquent date of the second installment of the original bill, whichever is later. (Amended by Stats. 1986, Ch. 1110, Sec. 7. Effective September 24, 1986.)
  38. 19101.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If certain franchise or income tax amounts are paid late, interest must be paid from the prescribed due date until payment, subject to specific timing rules and exceptions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19101. (a) If any amount of tax imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001), is not paid on or before the last date prescribed for payment, interest on that amount at the adjusted annual rate established under Section 19521 shall be paid for the period from that last date to the date paid. (b) For purposes of this article, the last date prescribed for payment of the tax shall be determined under Chapter 4 (commencing with Section 19001), with the application of the following rules: (1) The last date prescribed for payment shall be determined without regard to any extension of time for payment or any installment agreement entered into under Section 19008. (2) The last date prescribed for payment shall be determined without regard to any notice and demand for payment issued, by reason of jeopardy as provided in Article 5 (commencing with Section 19081), prior to the last date otherwise prescribed for that payment. (3) In all other cases in which the last date for payment is not otherwise prescribed, the last date for payment shall be deemed to be the date the liability for tax arises (and in no event shall be later than the date notice and demand for the tax is made by the Franchise Tax Board). (c) Except as provided in this article: (1) Interest prescribed under this article on any tax shall be paid upon notice and demand, and shall be assessed, collected, and paid in the same manner as taxes. Any reference in Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part (except Article 3 (commencing with Section 19031), relating to deficiency assessments) to any tax imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) shall be deemed also to refer to interest imposed by this article on that tax. (2) (A) Interest shall be imposed under subdivision (a) in respect to any assessable penalty, additional amount, or addition to the tax (other than an addition to tax imposed under Section 19131, 19132, or 19164) only if that assessable penalty, additional amount, or addition to the tax is not paid within 15 calendar days from the date of notice and demand therefor, and in that case interest shall be imposed only for the period from the date of the notice and demand to the date of payment. (B) Interest shall be imposed under this article with respect to any addition to tax imposed by Section 19131 (relating to failure to file a return on or before the due date), Section 19132 (relating to underpayment of tax), or Section 19164 (relating to imposition of the accuracy-related penalty), for the period that: (i) Begins on the date on which the return of the tax with respect to which that addition to tax is imposed is required to be filed (including any extensions), and (ii) Ends on the date of payment of that addition to tax. (3) If notice and demand is made for payment of any amount and if that amount is paid within 15 calendar days after the date of the notice and demand, interest under this article on the amount so paid shall not be imposed for the period after the date of the notice and demand. (d) This article shall not apply to any failure to pay estimated tax required by Section 19025 or 19136. (Amended by Stats. 2000, Ch. 863, Sec. 24. Effective January 1, 2001.)
  39. 19104.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board may abate certain interest, and taxpayers can appeal denials to the State Board of Equalization within specified deadlines.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19104. (a) The Franchise Tax Board may abate all or any part of any of the following: (1) Any interest on a deficiency or related to a proposed deficiency to the extent that interest is attributable in whole or in part to any unreasonable error or delay by an officer or employee of the Franchise Tax Board (acting in his or her official capacity) in performing a ministerial or managerial act. (2) Any interest on a payment of any tax described in Section 19033 to the extent that any delay in that payment is attributable to an officer or employee of the Franchise Tax Board (acting in his or her official capacity) being dilatory in performing a ministerial or managerial act. (3) Any interest accruing from a deficiency based on a final federal determination of tax, for the same period that interest was abated on the related federal deficiency amount under Section 6404(e) of the Internal Revenue Code, and the error or delay occurred on or before the issuance of the final federal determination. This subparagraph shall apply to any ministerial act for which the interest accrued after September 25, 1987, or for any managerial act applicable to a taxable year beginning on or after January 1, 1998, for which the Franchise Tax Board may propose an assessment or allow a claim for refund. (b) For purposes of subdivision (a): (1) Except as provided in paragraph (3), an error or delay shall be taken into account only if no significant aspect of that error or delay can be attributed to the taxpayer involved and after the Franchise Tax Board has contacted the taxpayer in writing with respect to that deficiency or payment. (2) (A) Except as provided in paragraph (4), after the Franchise Tax Board mails its notice of determination not to abate interest, a taxpayer may appeal the Franchise Tax Board’s determination to the State Board of Equalization within the following periods: (i) Thirty days in the case of any unpaid interest described under subdivision (a). (ii) Ninety days in the case of any paid interest described under subdivision (a). (B) The State Board of Equalization shall have jurisdiction over the appeal to determine whether the Franchise Tax Board’s failure to abate interest under this section was an abuse of discretion, and may order an abatement. (C) Except for clauses (i) and (ii) of subparagraph (A), the provisions of this paragraph are operative for requests for abatement of interest made on or after January 1, 1998. The provisions of clauses (i) and (ii) of subparagraph (A) shall apply to requests for abatement of interest made on or after January 1, 2001, in accordance with subdivision (d). (3) If the Franchise Tax Board fails to mail its notice of determination on a request to abate interest within six months after the request is filed, the taxpayer may consider that the Franchise Tax Board has determined not to abate interest and appeal that determination to the board. This paragraph shall not apply to requests for abatement of interest made pursuant to paragraph (4). (4) A request for abatement of interest related to a proposed deficiency may be made with the written protest of the underlying proposed deficiency filed pursuant to Section 19041 or with an appeal to the board under Section 19045 in the form and manner required by the Franchise Tax Board. The action of the Franchise Tax Board denying any portion of the request for abatement of interest relating to the proposed deficiency shall be considered as part of the appeal of the action of the Franchise Tax Board on the protest of the proposed deficiency. If the taxpayer filed an appeal from the Franchise Tax Board’s action on the protest of a proposed deficiency and the deficiency is final pursuant to Section 19048, the taxpayer may not thereafter request an abatement of interest accruing prior to the time the deficiency is final. However, the taxpayer may thereafter request an abatement pursuant to this section limited to interest accruing after the deficiency is final. (c) The Franchise Tax Board shall abate the assessment of all interest on any erroneous refund for which an action for recovery is provided under Section 19411 until 30 days after the date demand for repayment is made, unless the taxpayer (or a related party) has in any way caused that erroneous refund. (d) The amendments made to this section by Chapter 863 of the Statutes of 2000 shall apply to requests for abatement of interest and appeals made on or after January 1, 2001. (e) Except as provided in subparagraph (C) of paragraph (2) of subdivision (b), the amendments made by Chapter 600 of the Statutes of 1997 are operative with respect to taxable years beginning on or after January 1, 1998. (Amended by Stats. 2003, Ch. 455, Sec. 2. Effective January 1, 2004.)
  40. 19105.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    For an individual or fiduciary, the Franchise Tax Board must not assess Section 19101 interest charges during the stated period after final audit review and before a notice of proposed deficiency assessment is sent.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19105. In the case of an individual or fiduciary, the Franchise Tax Board shall not assess interest charges pursuant to Section 19101 for the period between 45 days after the date of final review of an audit determining an additional amount is owed and the date a notice of proposed deficiency assessment is sent to the taxpayer. (Amended by Stats. 2000, Ch. 863, Sec. 28. Effective January 1, 2001.)
  41. 19107.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If an overpayment is credited against a spouse’s deficiency after both spouses give timely written notice, no interest is charged on the part of the deficiency that is paid off by the credit for the later period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19107. Where an overpayment is made by any individual for any year, and a deficiency is owing from the spouse of the taxpayer for the same year, and both spouses notify the Franchise Tax Board in writing prior to the expiration of the time within which credit for the overpayment may be allowed that the overpayment may be credited against the deficiency, no interest shall be assessed on that portion of the deficiency as is extinguished by the credit for the period of time subsequent to the date the overpayment was made. (Amended by Stats. 2016, Ch. 50, Sec. 109. (SB 1005) Effective January 1, 2017.)
  42. 19108.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If a taxpayer has an overpayment and a separate deficiency, the overpayment must be credited against the deficiency if both timing rules are still open, and any remaining balance must be credited or refunded. Interest cannot be charged on the part of the deficiency wiped out by that credit after the overpayment date.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19108. (a) Where an overpayment is made by any taxpayer for any year, and a deficiency is owing from the same taxpayer for any other year, the overpayment, if the period within which credit for the overpayment may be allowed has not expired, shall be credited on the deficiency, if the period within which assessment of the deficiency may be proposed has not expired, and the balance, if any, shall be credited or refunded to the taxpayer. No interest shall be assessed on the portion of the deficiency as is extinguished by the credit for the period of time subsequent to the date the overpayment was made. (b) For the purposes of this section the returns of a decedent and his or her estate shall be considered returns of the same taxpayer and the returns for the decedent and his or her estate filed for the year of death shall be considered returns for different taxable years. (c) This section is not intended, nor shall it be construed, as a limitation on the Franchise Tax Board’s right to offset or recoup barred assessments against overpayments. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  43. 19109.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board must abate interest when it extends filing and payment deadlines for certain taxpayers in disaster or emergency areas. It may also abate interest on written request in some delay cases, and taxpayers can appeal abatement denials within set deadlines.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19109. (a) If the Franchise Tax Board extends for any period the time for filing a return under Section 18572 or subdivision (a) of Section 18567 and the time for paying the tax under Section 18572 or subdivision (c) of Section 18567 (and waives any penalties relating to the failure to so file or so pay) for any taxpayer located in a presidentially declared disaster area or any county or city in this state which is proclaimed by the Governor to be in a state of emergency that incurred a loss, the Franchise Tax Board shall abate for that period the assessment of any interest prescribed under this article on that tax. (b) (1) The Franchise Tax Board may, after written request by a taxpayer, abate the interest on any deficiency or related to a proposed deficiency described in Section 19033 or on a payment of tax to the extent that interest is attributable in whole or in part to the Franchise Tax Board’s delay in the mailing of a notice or other correspondence that requires a response from a taxpayer, in connection with a presidentially declared disaster area, or any county or city in this state that is proclaimed by the Governor to be in a state of emergency. (2) (A) Except as provided in paragraph (4), after the Franchise Tax Board mails its notice of determination not to abate interest, a taxpayer may appeal the Franchise Tax Board’s determination to the board within the following period, as applicable: (i) Thirty days in the case of any unpaid interest described under paragraph (1). (ii) Ninety days in the case of any paid interest described under paragraph (1). (B) The board shall have jurisdiction over the appeal to determine whether the Franchise Tax Board’s failure to abate interest under this subdivision was an abuse of discretion, and may order an abatement. (3) If the Franchise Tax Board fails to mail its notice of determination on a request to abate interest within six months after the request is filed, it shall be considered that the Franchise Tax Board has determined not to abate interest and the taxpayer may appeal that determination to the board. This paragraph shall not apply to requests for abatement of interest made under paragraph (4). (4) A request for abatement of interest related to a proposed deficiency may be made with the written protest of the underlying proposed deficiency filed under Section 19041 or with an appeal to the board under Section 19045 in the form and manner required by the Franchise Tax Board. The action of the Franchise Tax Board denying any portion of the request for abatement of interest related to the proposed deficiency shall be considered as part of the appeal of the action of the Franchise Tax Board on the protest of the proposed deficiency. If the taxpayer filed an appeal from the Franchise Tax Board’s action on the protest of a proposed deficiency and the deficiency is final pursuant to Section 19048, the taxpayer may not thereafter request an abatement of interest accruing prior to the time the deficiency is final. The taxpayer, however, may thereafter request an abatement pursuant to this subdivision limited to the interest accruing after the deficiency is final. (5) This subdivision shall apply to requests for abatement of interest made on or after the effective date of the act adding this paragraph. (c) For purposes of this section, the term “presidentially declared disaster area” means, with respect to any taxpayer, any area which the President has determined warrants assistance by the federal government under the Disaster Relief and Emergency Assistance Act. (Amended by Stats. 2012, Ch. 382, Sec. 2. (SB 1158) Effective January 1, 2013.)
  44. 19110.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If a corrected income item creates both an overpayment and a deficiency, the overpayment must be credited against the deficiency, and any remaining balance must be credited or refunded. Interest may not be charged on the part of the deficiency wiped out by that credit.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19110. (a) When the correction of an erroneous inclusion or deduction of an item or items in the computation of income of a trust, estate, parent, or spouse for any year results in an overpayment for that year by the trust, estate, parent, or spouse, and also results in a deficiency for the same year for a grantor of the trust or beneficiary of the estate or trust, or child of the parent, or spouse of the child, or the spouse of the spouse, the overpayment, if the period within which credit for the overpayment may be allowed has not expired, shall be credited on the deficiency, if the period within which the deficiency may be proposed has not expired, and the balance, if any, shall be credited or refunded. No interest shall be assessed on the portion of the deficiency as is extinguished by the credit for the period of time subsequent to the date the overpayment was made. (b) When the correction of an erroneous inclusion or deduction of an item or items in the computation of income of a grantor of a trust, beneficiary of an estate or trust, a child, or spouse of the child, or a spouse for any year results in an overpayment for that year by the grantor, beneficiary, child, or spouse, and also results in a deficiency for the same year for the grantor’s or beneficiary’s trust, the beneficiary’s estate, the child’s parent, or spouse of the child, or the beneficiary’s spouse, the overpayment, if the period within which credit for the overpayment may be allowed has not expired, shall be credited on the deficiency, if the period within which the deficiency may be proposed has not expired, and the balance, if any, shall be credited or refunded. No interest shall be assessed on the portion of the deficiency as is extinguished by the credit for the period of time subsequent to the date the overpayment was made. (c) Subdivisions (a) and (b) are not intended, nor shall they be construed as a limitation on the Franchise Tax Board’s right to offset or recoup barred assessments against overpayments. (Amended by Stats. 2016, Ch. 50, Sec. 110. (SB 1005) Effective January 1, 2017.)
  45. 19112.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The Franchise Tax Board may waive interest for certain individuals or fiduciaries who cannot pay because of extreme financial hardship caused by a significant disability or other catastrophic circumstance.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19112. Interest may be waived for any period for which the Franchise Tax Board determines that an individual or fiduciary demonstrates inability to pay that interest solely because of extreme financial hardship caused by significant disability or other catastrophic circumstance. Any waiver under this section shall be withdrawn retroactively if made because of fraud, malfeasance, misrepresentation, or omission of any material fact. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  46. 19113.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If part of a tax is paid using credit from an overpayment, no interest may be charged under this article on that part for periods when interest would have been allowed on the overpayment if the credit had not been made.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19113. If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under this article on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowable with respect to the overpayment. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  47. 19114.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Interest prescribed under this article on a tax may be assessed and collected during the same period that applies to collecting the related tax.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19114. Interest prescribed under this article on any tax may be assessed and collected at any time during the period within which the tax to which the interest relates may be collected. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  48. 19116.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If an individual files a Part 10 tax return on time, the Franchise Tax Board must suspend certain interest and penalties unless it gives notice of liability before the notification period ends.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19116. (a) In the case of an individual who files a return of tax imposed under Part 10 (commencing with Section 17001) for a taxable year on or before the due date for the return, including extensions, if the Franchise Tax Board does not provide a notice to the taxpayer specifically stating the taxpayer’s liability and the basis of the liability before the close of the notification period, the Franchise Tax Board shall suspend the imposition of any interest, penalty, addition to tax, or additional amount with respect to any failure relating to the return which is computed by reference to the period of time the failure continues to exist and which is properly allocable to the suspension period. (b) For purposes of this section: (1) Except as provided in subdivision (e), “notification period” means the 36-month period beginning on the later of either of the following: (A) The date on which the return is filed. (B) The due date of the return without regard to extensions. (2) “Suspension period” means the period beginning on the day after the close of the notification period and ending on the date which is 15 days after the date on which notice described in subdivision (a) is provided by the Franchise Tax Board. (3) If, after the return for a taxable year is filed, the taxpayer provides to the Franchise Tax Board one or more signed written documents showing that the taxpayer owes an additional amount of tax for the taxable year, paragraph (1) shall be applied by substituting the date the last of the documents was provided for the date on which the return was filed. (c) This section shall be applied separately with respect to each item or adjustment. (d) This section shall not apply to any of the following: (1) Any penalty imposed by Section 19131. (2) Any penalty imposed by Section 19132. (3) Any interest, penalty, addition to tax, or additional amount involving fraud. (4) Any interest, penalty, addition to tax, or additional amount with respect to any tax liability shown on the return. (5) Any criminal penalty. (6) Any interest, penalty, addition to tax, or additional amount with respect to any gross misstatement. (7) Any interest, penalty, addition to tax, or additional amount relating to any reportable transaction with respect to which the requirements of Section 6664(d)(2)(A) of the Internal Revenue Code are not met, and any listed transaction, as defined in Section 6707A(c) of the Internal Revenue Code. (8) Any interest, penalty, addition to tax, or additional amount relating to any abusive tax avoidance transaction, as defined in Section 19777, as amended by the act adding this paragraph. (e) For taxpayers required by subdivision (a) of Section 18622 to report a change or correction by the Commissioner of Internal Revenue or other officer of the United States or other competent authority the following rules shall apply: (1) The notification period under subdivision (a) shall be either of the following: (A) One year from the date the notice required by Section 18622 is filed with the Franchise Tax Board by the taxpayer or the Internal Revenue Service, if the taxpayer or the Internal Revenue Service reports that change or correction within six months after the final federal determination. (B) Two years from the date when the notice required by Section 18622 is filed with the Franchise Tax Board by the taxpayer or the Internal Revenue Service, if after the six-month period required in Section 18622, a taxpayer or the Internal Revenue Service reports a change or correction. (2) The suspension period under subdivision (a) shall mean the period beginning on the day after the close of the notification period under paragraph (1) and ending on the date which is 15 days after the date on which notice described in subdivision (a) is provided by the Franchise Tax Board. (f) For notices sent after January 1, 2004, this section does not apply to taxpayers with taxable income greater than two hundred thousand dollars ($200,000) that have been contacted by the Franchise Tax Board regarding the use of a potentially abusive tax shelter as defined by Section 19777, as added by Chapter 656 of the Statutes of 2003 and amended by Section 331 of Chapter 183 of the Statutes of 2004. (g) This section shall apply to taxable years ending after October 10, 1999. (h) The amendments made to this section by Chapter 691 of the Statutes of 2005 shall apply to notices sent after January 1, 2005. (i) (1) The amendments made to paragraph (1) of subdivision (b) by Chapter 14 of the Statutes of 2010 shall apply to notices provided after January 1, 2011. (2) Paragraph (3) of subdivision (b), as added by Chapter 14 of the Statutes of 2010, shall apply to documents provided on or after January 1, 2011. (3) Paragraph (8) of subdivision (d), as added by the act adding this paragraph, shall apply to notices provided, or amended returns filed, on or after January 1, 2012. (Amended by Stats. 2011, Ch. 14, Sec. 4. (SB 86) Effective March 24, 2011. Note: This 2011 amendment added para. (8) of subd. (d) and para. (3) of subd. (i).)
  49. 19117.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board must include interest-computation information in certain taxpayer notices and, if the taxpayer asks, provide a computation of the interest.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19117. (a) The Franchise Tax Board shall include with each notice to an individual taxpayer which includes an amount of interest required to be paid by the taxpayer under this part information with respect to the section under which interest is imposed and a description of how the interest is computed. Upon the request of the taxpayer, the Franchise Tax Board shall also provide a computation of the interest. (b) This section shall apply to any notice issued after December 31, 2001. (Added by Stats. 1999, Ch. 931, Sec. 19. Effective October 10, 1999.)
  50. 19120.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Interest applies to any portion of an erroneously refunded amount that is recoverable by suit under Section 19411, starting from the refund payment date.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Interest [19101 - 19120] ( Article 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19120. Any portion of any amount that has been erroneously refunded and that is recoverable by suit pursuant to Section 19411 shall bear interest at the adjusted annual rate established pursuant to Section 19521 from the date of the payment of the refund. Abatement of interest under this section is governed by subdivision (c) of Section 19104. (Amended by Stats. 2003, Ch. 455, Sec. 3. Effective January 1, 2004.)
  51. 19131.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section adds a penalty when a taxpayer does not file a required return on time, with different rules for individuals, fiduciaries, and fraudulent failures.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19131. (a) If any taxpayer fails to make and file a return required by this part on or before the due date of the return or the due date as extended by the Franchise Tax Board, then, unless it is shown that the failure is due to reasonable cause and not due to willful neglect, 5 percent of the tax shall be added to the tax for each month or fraction thereof elapsing between the due date of the return (determined without regard to any extension of time for filing) and the date on which filed, but the total penalty may not exceed 25 percent of the tax. In the case of a commencing corporation, the penalty shall apply to all tax accruable on the due date of the return. The penalty so added to the tax shall be due and payable upon notice and demand from the Franchise Tax Board. (b) In the case of an individual or fiduciary who fails to file a return of tax required by this part within 60 days of the date prescribed for filing of that return (determined with regard to any extension of time for filing), unless it is shown that the failure is due to reasonable cause and not due to willful neglect, this penalty may not be less than the lesser of one hundred thirty-five dollars ($135) or 100 percent of the amount of tax required to be shown on the return. (c) For purposes of this section, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return. (d) If any failure to file any return is fraudulent, subdivision (a) shall be applied by: (1) Substituting “15 percent” for “5 percent,” and (2) Substituting “75 percent” for “25 percent.” (e) This section does not apply to any failure to pay any estimated tax required by Section 19025 or 19136. (f) (1) The penalty described in this section is presumed not to apply if, with respect to the same taxable year, all of the following conditions are met: (A) A taxpayer fails to make and file a return required by this part on or before the due date of the return, determined with regard to any extension of time for filing, and fails to make and file a return required by Section 6012 of the Internal Revenue Code on or before the due date of the return, determined with regard to any extension of time for filing. (B) The Franchise Tax Board proposes a deficiency assessment that is based upon a final federal determination. (C) The Commissioner of Internal Revenue or other officer of the United States determines that the penalty described in Section 6651(a)(1) of the Internal Revenue Code does not apply because the failure to file the federal return on or before the date prescribed for its filing was due to reasonable cause and not due to willful neglect. (2) The Franchise Tax Board may rebut the presumption described in paragraph (1) by establishing, by a preponderance of the evidence, that the taxpayer’s failure to make and file a return required by this part was not due to reasonable cause or was due to willful neglect. (Amended by Stats. 2010, Ch. 14, Sec. 44. (SB 401) Effective January 1, 2011.)
  52. 19131.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section makes IRC 6164 apply in California, with specific substitutions and exclusions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19131.5. (a) Section 6164 of the Internal Revenue Code, relating to extension of time for payment of taxes by corporations expecting carrybacks, shall apply, except as otherwise provided. (b) (1) Section 6164 of the Internal Revenue Code is modified by substituting the phrase “Secretary or the Franchise Tax Board” for the word “Secretary” in each place it appears. (2) Section 6164(a) of the Internal Revenue Code is modified by substituting the phrase “Part 11 (commencing with Section 23001)” in lieu of the phrase “subtitle A.” (3) Section 6164(b) of the Internal Revenue Code, relating to contents of statement, is modified by substituting the phrase “Section 24416” in lieu of the phrase “Section 172(b).” (4) Section 6164(d)(2) of the Internal Revenue Code shall not apply. (5) Section 6164(h) of the Internal Revenue Code, relating to jeopardy, is modified as follows: (A) By substituting the phrase “he or the Franchise Tax Board” for the word “he” in each place it appears. (B) By substituting the phrase “him or the Franchise Tax Board” for the word “him” in each place it appears. (6) Section 6164(i) of the Internal Revenue Code, relating to consolidated returns, is modified by substituting the phrase “combined report” in lieu of the phrase “consolidated return” in each place it appears. (c) This section shall not apply to a carryback of a net operating loss attributable to taxable years beginning on or after January 1, 2019. (Amended by Stats. 2019, Ch. 39, Sec. 19. (AB 91) Effective July 1, 2019.)
  53. 19132.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If a listed tax amount is not paid, a penalty applies unless the failure was due to reasonable cause and not willful neglect.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19132. (a) (1) Unless it is shown that the failure is due to reasonable cause and not due to willful neglect, a penalty computed in accordance with paragraph (2) is hereby imposed in the case of failure to pay any of the following: (A) The amount shown as tax on any return on or before the date prescribed for payment of that tax determined with regard to any extension of time for payment. (B) Any amount in respect of any tax required to be shown on a return which is not so shown including an assessment made pursuant to Section 19051 within 15 days of the date of the notice and demand therefor. (C) The amount required to be paid by Section 19021, if applicable, that is not paid. (D) The amount required to be paid by Section 17941 or 23091, if applicable, that is not paid. (E) The amount required to be paid by Section 17948 or 23097, if applicable, that is not paid. (2) The penalty imposed under paragraph (1) shall consist of both of the following: (A) Five percent of the total tax unpaid as defined in subdivision (c). (B) An amount computed at the rate of 0.5 percent per month of the “remaining tax” as defined in subdivision (d) for each additional month or fraction thereof not to exceed 40 months during which the “remaining tax” is greater than zero. (3) The aggregate amount of penalty imposed by this subdivision shall not exceed 25 percent of the total unpaid tax and shall be due and payable upon notice and demand by the Franchise Tax Board. The tender of a check or money order does not constitute payment of the tax for purposes of this section unless the check or money order is paid on presentment. (b) The penalty prescribed by subdivision (a) shall not be assessed if, for the same taxable year, the sum of any penalties imposed under Section 19131 relating to failure to file return and Section 19133 relating to failure to file return after demand is equal to or greater than the subdivision (a) penalty. In the event the penalty imposed under subdivision (a) is greater than the sum of any penalties imposed under Sections 19131 and 19133, the penalty imposed under subdivision (a) shall be the amount which exceeds the sum of any penalties imposed under Sections 19131 and 19133. (c) For purposes of this section, total tax unpaid means the amount of tax shown on the return reduced by both of the following: (1) The amount of any part of the tax which is paid on or before the date prescribed for payment of the tax. (2) The amount of any credit against the tax which may be claimed upon the return. (d) For purposes of this section, “remaining tax” means total tax unpaid reduced by the amount of any payment of the tax. (e) If the amount required to be shown as a tax on a return is less than the amount shown as tax on that return, subdivisions (a), (c), and (d) shall be applied by substituting that lower amount. (f) No interest shall accrue on the portion of the penalty prescribed in subparagraph (B) of paragraph (2) of subdivision (a). (g) The amendments made by the act adding this subdivision are operative for notices issued on or after January 1, 1998. (Amended by Stats. 1998, Ch. 322, Sec. 50. Effective August 20, 1998.)
  54. 19132.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    An individual taxpayer may ask once for abatement of a timeliness penalty under this section, and the penalty must be abated if the stated conditions are met.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19132.5. (a) (1) An individual taxpayer may elect to request a one-time abatement of a timeliness penalty under this section for a timeliness penalty that has been considered and rejected for abatement pursuant to the provisions of the section under which the penalty is imposed. (2) An individual taxpayer may, in lieu of requesting consideration for abatement pursuant to the section under which the timeliness penalty is imposed, instead request a one-time abatement of a timeliness penalty under this section. (b) If a taxpayer described in subdivision (a) requests, either orally or in writing, the abatement of a timeliness penalty pursuant to this section, the timeliness penalty shall be abated if all of the following apply: (1) The taxpayer has not previously been required to file a California personal income tax return under Part 10 (commencing with Section 17001) or has not previously been granted abatement under this section. (2) The taxpayer has filed all returns required under Part 10 (commencing with Section 17001) as of the date of the taxpayer’s request for abatement under this section. (3) Excluding the timeliness penalty that is the subject of the abatement request under this section, the taxpayer has paid in full, or arranged to pay pursuant to an installment agreement, any tax, penalties, fees, and interest due for the required returns pursuant to paragraph (2) and the taxpayer is current with all installment payments. (c) For purposes of this section, “timeliness penalty” means a penalty imposed under Section 19131 or 19132 for one taxable year with respect to a return filed by an individual for that taxable year. (d) For purposes of this section: (1) A timeliness penalty imposed and subsequently abated due to a determination of reasonable cause, or reasonable cause and not willful neglect, with respect to the taxpayer or the taxpayer’s spouse shall be considered to have not been imposed for purposes of determining eligibility for timeliness penalty abatement under this section. (2) A timeliness penalty shall be considered imposed on the original due date of the return for the taxable year for which the penalty is imposed. (e) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (f) This section shall apply to requests for abatement made for taxable years beginning on or after January 1, 2022. (Repealed and added by Stats. 2022, Ch. 55, Sec. 10. (AB 194) Effective June 30, 2022.)
  55. 19133.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If a taxpayer does not provide requested information or file a required return, the Franchise Tax Board may add a 25% penalty unless the failure was due to reasonable cause and not willful neglect.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19133. If any taxpayer fails or refuses to furnish any information requested in writing by the Franchise Tax Board or fails or refuses to make and file a return required by this part upon notice and demand by the Franchise Tax Board, then, unless the failure is due to reasonable cause and not willful neglect, the Franchise Tax Board may add a penalty of 25 percent of the amount of tax determined pursuant to Section 19087 or of any deficiency tax assessed by the Franchise Tax Board concerning the assessment of which the information or return was required. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  56. 19134.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section applies the federal bad-checks rule to certain tax payments, including credit card remittance and electronic funds transfer payments, with timing rules based on when the payment was received.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19134. (a) The provisions of Section 6657 of the Internal Revenue Code, relating to bad checks, shall apply except as otherwise provided. (b) Section 6657 of the Internal Revenue Code, relating to bad checks, is modified to apply to payments made by credit card remittance or electronic funds transfer (as provided by Section 19011) in addition to payments made by check or money order. (c) For payments received prior to January 1, 1993, this section shall be applied only to payments pertaining to taxable years beginning on or after January 1, 1990. (d) For payments received on or after January 1, 1993, this section shall be applied to all payments, without regard to taxable year. (e) The amendments made to Section 6657 of the Internal Revenue Code by Public Law 110-28 that are incorporated by reference under this section shall apply to all payments received after the effective date of the act adding this subdivision, without regard to taxable year. (Amended by Stats. 2010, Ch. 14, Sec. 45. (SB 401) Effective January 1, 2011.)
  57. 19135.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board must impose a $2,000 penalty per taxable year on certain entities that do business in the state and fail to file the required return within 60 days after notice and demand, unless the failure was due to reasonable cause and not willful neglect.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19135. (a) (1) The Franchise Tax Board shall impose a penalty of two thousand dollars ($2,000) per taxable year whenever an entity described in paragraph (2) is doing business in this state, within the meaning of Section 23101, and fails to make and file a return as required by this part, within 60 days after the Franchise Tax Board sends the taxpayer a notice and demand to file the required tax return, unless the failure is due to reasonable cause and not willful neglect. (2) (A) A foreign corporation or a foreign limited liability company that fails to qualify to do business in this state or whose powers, rights, and privileges have been forfeited. (B) A domestic corporation or a domestic limited liability company that has been suspended. (b) The penalty shall be in addition to any other penalty that may be due under this part. (Repealed and added by Stats. 2012, Ch. 313, Sec. 3. (AB 318) Effective January 1, 2013.)
  58. 19136.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    This section applies the estimated-income-tax addition rules to nonresident individuals, with several IRC modifications and exceptions, including no addition to tax below certain dollar thresholds.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19136. (a) Section 6654 of the Internal Revenue Code, relating to failure by an individual to pay estimated income tax, applies, except as otherwise provided. (b) Section 6654(a)(1) of the Internal Revenue Code is modified to refer to the rate determined under Section 19521 in lieu of Section 6621 of the Internal Revenue Code. (c) (1) Section 6654(e)(1) of the Internal Revenue Code, relating to exceptions where the tax is a small amount, does not apply. (2) An addition to tax shall not be imposed under this section if the tax imposed under Section 17041 or 17048 and the tax imposed under Section 17062 for the preceding taxable year, minus the sum of any credits against the tax provided by Part 10 (commencing with Section 17001) or this part, or the tax computed under Section 17041 or 17048 upon the estimated income for the taxable year, minus the sum of any credits against the tax provided by Part 10 (commencing with Section 17001) or this part, is less than five hundred dollars ($500), except in the case of a separate return filed by a married person the amount shall be less than two hundred fifty dollars ($250). (d) Section 6654(f) of the Internal Revenue Code does not apply and for purposes of this section the term “tax” means the tax imposed under Section 17041 or 17048 and the tax imposed under Section 17062 less any credits against the tax provided by Part 10 (commencing with Section 17001) or this part, other than the credit provided by subdivision (a) of Section 19002. (e) (1) The credit for tax withheld on wages, as specified in Section 6654(g) of the Internal Revenue Code, is the credit allowed under subdivision (a) of Section 19002. (2) (A) Section 6654(g)(1) of the Internal Revenue Code is modified by substituting the phrase “the applicable percentage” for the phrase “an equal part.” (B) For purposes of this paragraph, “applicable percentage” means the percentage amount prescribed under Section 6654(d)(1)(A) of the Internal Revenue Code, as modified by subdivision (a) of Section 19136.1. (f) This section applies to a nonresident individual. (g) (1) An addition to tax shall not be imposed under this section to the extent that the underpayment was created or increased by either of the following: (A) Any law that is chaptered during and operative for the taxable year of the underpayment. (B) If, for a taxable year prior to its repeal, the adjustment factor for the credit authorized by Section 17052 for the taxable year was less than the adjustment factor for that credit for the preceding taxable year. (2) (A) Notwithstanding Section 18415, subparagraph (A) of paragraph (1) applies to penalties imposed under this section on or after January 1, 2005. (B) Notwithstanding Section 18415, subparagraph (B) of paragraph (1) applies to penalties imposed under this section on or after January 1, 2016. (h) The amendments made to this section by Section 5 of Chapter 305 of the Statutes of 2008 apply to taxable years beginning on or after January 1, 2009. (i) The amendments made to this section by Section 3 of Chapter 15 of the Fourth Extraordinary Session of the Statutes of 2009 apply to amounts withheld on wages beginning on or after January 1, 2009. (j) Notwithstanding subdivision (f), this section shall not apply to a nonresident individual electing to file in a group return pursuant to Section 18537, for taxable years beginning on or after January 1, 2026. (Amended by Stats. 2025, Ch. 73, Sec. 7. (AB 1518) Effective January 1, 2026.)
  59. 19136.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    This section changes how required tax installments are calculated for certain taxable years.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19136.1. (a) Section 6654(d)(1)(A) of the Internal Revenue Code is modified to provide that in lieu of the required installments specified in that section, the amount of required installments shall instead be as follows: (1) For each taxable year beginning on or after January 1, 2009, and before January 1, 2010, the amount of required installments shall be: (A) For the 1st and 2nd required installments, 30 percent of the required annual payment. (B) For the 3rd and 4th required installments, 20 percent of the required annual payment. (2) For each taxable year beginning on or after January 1, 2010, the amount of required installments shall be: (A) For the 1st required installment, 30 percent of the required annual payment. (B) For the 2nd required installment, 40 percent of the required annual payment. (C) The amount of the 3rd required installment shall be zero. (D) For the 4th required installment, 30 percent of the required annual payment. (b) Section 6654(d)(2)(C)(ii) of the Internal Revenue Code, relating to applicable percentage, is modified as follows: (1) For each taxable year beginning on or after January 1, 2009, and before January 1, 2010, by substituting “27” for “22.5,” “54” for “45,” and “72” for “67.5.” (2) For each taxable year beginning on or after January 1, 2010, by substituting “27” for “22.5,” “63” for “45,” and “63” for “67.5.” (Amended by Stats. 2009, 4th Ex. Sess., Ch. 15, Sec. 4. (AB 17 4x) Effective October 23, 2009.)
  60. 19136.12.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The Franchise Tax Board must implement this section reasonably. The section also blocks certain additions to tax for 2005 taxable-year underpayments tied to the act adding this section.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19136.12. (a) No addition to tax shall be made pursuant to Section 19136 for any period before the date prescribed under Section 18566 for the filing of the return for the 2005 taxable year, with respect to any underpayment of an installment for the 2005 taxable year, to the extent that the underpayment was created or increased by any provision of the act adding this section. (b) No addition to tax shall be made pursuant to Section 18601 for the filing of the return for the 2005 taxable year, with respect to any underpayment of an installment for the 2005 taxable year, to the extent that the underpayment was created or increased by any provision of the act adding this section. (c) The Franchise Tax Board shall implement this section in a reasonable manner. (Added by Stats. 2005, Ch. 691, Sec. 47. Effective October 7, 2005.)
  61. 19136.13.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    No addition to tax may be imposed under Section 19136 for certain underpayments tied to the 2007 taxable year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19136.13. No addition to tax shall be made pursuant to Section 19136 for any period before the date prescribed under Section 18566 for the filing of the return for the 2007 taxable year, with respect to any underpayment of an installment for the 2007 taxable year, to the extent that the underpayment was created or increased by any provision of the act adding this section or Chapter 802 of the Statutes of 2006. (Added by Stats. 2007, Ch. 426, Sec. 3. Effective October 10, 2007.)
  62. 19136.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    For taxable years beginning on or after January 1, 1998, and before January 1, 1999, the cited Internal Revenue Code rule does not apply.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19136.2. For taxable years beginning on or after January 1, 1998, and before January 1, 1999, Section 6654(d)(1)(C)(i) of the Internal Revenue Code, relating to limitation on use of preceding year’s tax, shall not apply. (Added by Stats. 1997, Ch. 611, Sec. 56.5. Effective October 3, 1997.)
  63. 19136.3.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    For this section, clause (ii) does not apply when the individual’s reported adjusted gross income is at least $1 million, or $500,000 for a married individual filing separately.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19136.3. (a) Section 6654(d)(1)(B) of the Internal Revenue Code is modified to additionally provide that clause (ii) shall not apply if the adjusted gross income shown on the return of the individual for the taxable year is equal to or greater than $1 million ($500,000 in the case of a married individual filing a separate return). (b) This section shall apply to taxable years beginning on or after January 1, 2009. (Added by Stats. 2008, 1st Ex. Sess., Ch. 1, Sec. 3. Effective December 31, 2008.)
  64. 19136.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    No addition to tax may be made under Section 19136 for certain tax installments due on or after January 1, 1993.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19136.5. No addition to tax shall be made under Section 19136 for any installment of tax due on or after January 1, 1993, to the extent that the underpayment is attributable solely to changes made to the laws of other states applicable to the determination of credits that make Section 18001 inapplicable, by its terms, to a resident of this state. (Added by Stats. 1993, Ch. 877, Sec. 28.1. Effective October 6, 1993. Operative January 1, 1994, by Sec. 102 of Ch. 877.)
  65. 19136.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The Franchise Tax Board must implement this section reasonably, and no additions to tax may be made under Sections 19136 or 19142 for certain installment underpayments caused or increased by FTB erroneous levy, processing, or collection actions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19136.7. (a) No additions to tax shall be made under Section 19136 or 19142 with respect to any underpayment of an installment for a taxable year, to the extent that the underpayment was created or increased as the direct result of an erroneous levy, erroneous processing action, or erroneous collection action by the Franchise Tax Board. (b) The Franchise Tax Board shall implement this section in a reasonable manner. (Added by Stats. 2005, Ch. 349, Sec. 3. Effective January 1, 2006.)
  66. 19138.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A taxpayer with a large understatement of tax under Part 11 may be liable for a 20% penalty, unless a listed exception applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19138. (a) (1) A taxpayer subject to the tax imposed under Part 11 (commencing with Section 23001) with an understatement of tax for any taxable year shall be subject to the penalty imposed under this section if that understatement exceeds the greater of the following: (A) One million dollars ($1,000,000). (B) Twenty percent of the tax shown on an original return or shown on an amended return filed on or before the original or extended due date of the return for the taxable year. (2) For taxpayers that are required to be included in a combined report under Section 25101 or authorized to be included in a combined report under Section 25101.15, the threshold amount prescribed in subparagraph (A) or subparagraph (B) of paragraph (1) shall apply to the aggregate amount of tax liability under Part 11 (commencing with Section 23001) for all taxpayers that are required to be or authorized to be included in a combined report. (b) (1) The penalty under this section shall be an amount equal to 20 percent of any understatement of tax. For purposes of this section, “understatement of tax” means the amount by which the tax imposed by Part 11 (commencing with Section 23001) exceeds the amount of tax shown on an original return or shown on an amended return filed on or before the original or extended due date of the return for the taxable year. (2) For any taxable year beginning before January 1, 2008, the amount of tax paid on or before May 31, 2009, and shown on an amended return filed on or before May 31, 2009, shall be treated as the amount of tax shown on an original return for purposes of this section. (3) The amount of additional tax shown on the first amended return reflecting a proper election under Section 338 of the Internal Revenue Code, relating to certain stock purchases treated as asset acquisitions, shall be treated as if that amount was included in the amount of tax shown on an original return for purposes of this section. (c) The penalty imposed by this section shall be in addition to any other penalty imposed under Part 11 (commencing with Section 23001) or this part. (d) Article 3 (commencing with Section 19031), relating to deficiency assessments, shall not apply with respect to the assessment or collection of any penalty imposed by subdivision (a). (e) A refund or credit for any amounts paid to satisfy a penalty imposed under this section may be allowed only on the grounds that the amount of the penalty was not properly computed by the Franchise Tax Board. (f) No penalty shall be imposed under this section on any understatement to the extent that the understatement is attributable to any of the following: (1) (A) A change in law that is enacted, promulgated, issued, or becomes final after the earlier of either of the following dates: (i) The date the taxpayer files the return for the taxable year for which the change is operative. (ii) The extended due date for the return of the taxpayer for the taxable year for which the change is operative. (B) For purposes of this paragraph, a “change of law” means a statutory change or an interpretation of law or rule of law by regulation, legal ruling of counsel, within the meaning of subdivision (b) of Section 11340.9 of the Government Code, or a published federal or California court decision. (C) The Franchise Tax Board shall implement this paragraph in a reasonable manner. (2) The imposition of an alternative apportionment or allocation method by the Franchise Tax Board under the authority of Section 25137 because the standard allocation and apportionment provisions of Article 2 (commencing with Section 25120) and the regulations thereunder do not fairly represent the extent of the taxpayer’s business activity in this state. (3) A change to the taxpayer’s federal accounting method pursuant to Section 446 of the Internal Revenue Code, relating to general rule for methods of accounting, that is applicable for purposes of Part 11 (commencing with Section 23001), but only to the extent of understatements for taxable years where the due date of the return, without regard to any extension of time for filing the return, is before the date of consent of the secretary to that change of accounting method. (g) No penalty shall be imposed under this section to the extent that a taxpayer’s understatement is attributable to the taxpayer’s reasonable reliance on written advice of the Franchise Tax Board, but only if the written advice was a legal ruling by the Chief Counsel, within the meaning of paragraph (1) of subdivision (a) of Section 21012. (h) (1) This section shall apply to each taxable year beginning on or after January 1, 2003, for which the statute of limitations on assessment has not expired. (2) The amendments made to this section by Chapter 721 of the Statutes of 2010 shall apply to each taxable year beginning on or after January 1, 2010. (3) (A) Except as otherwise provided, the amendments made to this section by the act adding this paragraph shall apply to each taxable year beginning on or after January 1, 2015. (B) The provisions of paragraph (2) of subdivision (f), as added by the act adding this paragraph, shall apply to understatements for any taxable year for which the statute of limitations on assessments has not expired as of the effective date of the act adding this paragraph. (Amended by Stats. 2015, Ch. 359, Sec. 20. (AB 154) Effective September 30, 2015. Applicable to taxable years beginning on or after January 1, 2015, as provided in Sec. 41 of Stats. 2015, Ch. 359.)
  67. 19141.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The Franchise Tax Board must assess fixed penalties when the Secretary of State certifies under the listed Corporations Code provisions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19141. Upon certification by the Secretary of State pursuant to subdivision (a) of Section 2204 or subdivision (a) of Section 17713.09 of the Corporations Code, the Franchise Tax Board shall assess a penalty of two hundred fifty dollars ($250). Upon certification by the Secretary of State pursuant to subdivision (a) of Section 6810 or subdivision (a) of Section 8810 of the Corporations Code, the Franchise Tax Board shall assess a penalty of fifty dollars ($50). Any penalty assessed under this section shall be a final assessment due and payable at the time of assessment but no interest shall accrue thereon. The assessment shall be collected as other taxes, interest, and penalties are collected by the Franchise Tax Board unless the Secretary of State decertifies the name of the corporation as provided in subdivision (e) or (f) of Section 2204, subdivision (e) of Section 6810, subdivision (e) of Section 8810, or subdivision (e) of Section 17713.08, of the Corporations Code. (Amended by Stats. 2012, Ch. 419, Sec. 28. (SB 323) Effective January 1, 2013. Operative January 1, 2014, by Sec. 32 of Ch. 419.)
  68. 19141.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    This section adopts and modifies IRC Section 6038 for certain foreign corporation information reporting, requires a copy of the IRS filing to be provided to the Franchise Tax Board, and imposes a penalty for failure to furnish the information unless an exception applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19141.2. (a) Section 6038 of the Internal Revenue Code, relating to information with respect to certain foreign corporations, shall apply, except as otherwise provided. (b) Section 6038(a) is modified as follows: (1) The information required to be filed with the Franchise Tax Board under this section shall be a copy of the information required to be filed with the Internal Revenue Service. (2) The term “United States person,” as defined in Section 7701(a)(30) of the Internal Revenue Code, shall be limited to a domestic corporation, as defined in Section 7701(a) of the Internal Revenue Code, or a bank, as defined in Section 23039, that is subject to the tax imposed under Chapter 2 (commencing with Section 23101), Chapter 2.5 (commencing with Section 23400), or Chapter 3 (commencing with Section 23501), of Part 11. (c) (1) Unless it is shown that the failure is due to reasonable cause and not due to willful neglect, a penalty shall be imposed under this part for failure to furnish information and that penalty shall be determined in accordance with Section 6038 of the Internal Revenue Code, except as otherwise provided. (A) Section 6038(b) of the Internal Revenue Code shall be modified by substituting “$1,000” for “$10,000” in each place it appears. (B) Section 6038(b)(2) of the Internal Revenue Code shall be modified by substituting “$24,000” for “$50,000.” (2) No penalty shall be imposed under paragraph (1) if the copy of the information required to be filed with the Internal Revenue Service was not attached to the taxpayer’s return as originally filed but the taxpayer does both of the following: (A) Furnishes the copy of the information required to be filed with the Internal Revenue Service either upon its own initiative or within 90 days of notification by the Franchise Tax Board of the requirements of this section. (B) Agrees to attach a copy of the information required to be filed with the Internal Revenue Service to the taxpayer’s original return filed for subsequent taxable years. (3) All or any portion of the penalty imposed under paragraph (1) may be waived by the Franchise Tax Board when the taxpayer has entered into a voluntary disclosure agreement under Article 8 (commencing with Section 19191) of Chapter 4. (4) The penalty imposed under this subdivision shall not apply to returns required to be filed for taxable years beginning before January 1, 1998. (d) This section shall apply to returns required to be filed for taxable years beginning on or after January 1, 1997. (Amended by Stats. 2000, Ch. 862, Sec. 21. Effective January 1, 2001.)
  69. 19141.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section makes several Internal Revenue Code foreign-information rules apply in California, with modifications to penalty amounts and enforcement references.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19141.5. (a) (1) Section 6038A of the Internal Revenue Code, relating to information with respect to certain foreign-owned corporations, shall apply. (2) A penalty shall be imposed under this part for failure to furnish information or maintain records and that penalty shall be determined in accordance with Section 6038A of the Internal Revenue Code, except as otherwise provided. (3) The penalty amounts in Section 6038A(d) of the Internal Revenue Code, relating to penalty for failure to furnish information or maintain records, are modified by substituting “$10,000” in lieu of “$25,000.” (4) Section 6038A(e) of the Internal Revenue Code, relating to enforcement of requests for certain records, is modified as follows: (A) Each reference to Section 7602, 7603, or 7604 of the Internal Revenue Code shall instead refer to Section 19504. (B) Each reference to “summons” shall instead refer to “subpoena duces tecum.” (C) Section 6038A(e)(4)(C) of the Internal Revenue Code shall refer to “superior courts of the State of California for the Counties of Los Angeles, Sacramento, and San Diego, and for the City and County of San Francisco,” instead of “United States district court for the district in which the person (to whom the summons is issued) resides or is found.” (b) In the case of a corporation, each of the following shall apply: (1) Section 6038B of the Internal Revenue Code, relating to notice of certain transfers to foreign persons, shall apply, except as otherwise provided. (2) The information required to be filed with the Franchise Tax Board under this subdivision shall be a copy of the information required to be filed with the Internal Revenue Service. (3) (A) A penalty shall be imposed under this part for failure to furnish information and that penalty shall be determined in accordance with Section 6038B of the Internal Revenue Code, except as otherwise provided. (B) Subparagraph (A) shall not apply to any transfer described in Section 6038B(a)(1)(B) of the Internal Revenue Code. (c) (1) Section 6038C of the Internal Revenue Code, relating to information with respect to foreign corporations engaged in United States business, shall apply. (2) A penalty shall be imposed under this part for failure to furnish information or maintain records and that penalty shall be determined in accordance with Section 6038C of the Internal Revenue Code. (3) Section 6038C(d) of the Internal Revenue Code, relating to enforcement of requests for certain records, is modified as follows: (A) Each reference to Section 7602, 7603, or 7604 of the Internal Revenue Code shall instead refer to Section 19504. (B) Each reference to “summons” shall instead refer to “subpoena duces tecum.” (d) (1) Section 6038D of the Internal Revenue Code, relating to information with respect to foreign financial assets, shall apply. (2) A penalty shall be imposed under this part for failure to furnish information and that penalty shall be determined in accordance with Section 6038D of the Internal Revenue Code. (e) For purposes of this part, the information required to be filed with the Franchise Tax Board pursuant to this section shall be a copy of the information filed with the Internal Revenue Service. (f) For purposes of this section, each of the following shall apply: (1) Section 7701(a)(4) of the Internal Revenue Code, relating to the term “domestic,” shall apply. (2) Section 7701(a)(5) of the Internal Revenue Code, relating to the term “foreign,” shall apply. (3) Section 7701(a)(30) of the Internal Revenue Code, relating to the term “United States person,” shall apply. However, the term “United States person” shall not include any corporation that is not subject to the tax imposed under Chapter 2 (commencing with Section 23101), Chapter 2.5 (commencing with Section 23400), or Chapter 3 (commencing with Section 23501), of Part 11. (g) The amendments made to this section by the act adding this subdivision shall apply to taxable years beginning on or after January 1, 2016. (Amended by Stats. 2025, Ch. 231, Sec. 68. (SB 711) Effective October 1, 2025. Applicable to taxable years beginning on or after January 1, 2016, as provided in subdivision (g).)
  70. 19141.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Certain taxpayers must keep specified tax records and make them available on request, and failures can trigger penalties.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19141.6. (a) Each taxpayer determining its income subject to tax pursuant to Section 25101 or electing to file pursuant to Section 25110 shall, for taxable years beginning on or after January 1, 1994, maintain (in the location, in the manner, and to the extent prescribed in regulations promulgated by the Franchise Tax Board on or before December 31, 1995) and make available upon request all of the following: (1) Any records as may be appropriate to determine the correct treatment of the components that are a part of one or more unitary businesses for purposes of determining the income derived from or attributable to this state pursuant to Section 25101 or 25110. (2) Any records as may be appropriate to determine the correct treatment of amounts that are attributable to the classification of an item as business or nonbusiness income for purposes of Article 2 (commencing with Section 25120) of Chapter 17 of Part 11. (3) Any records as may be appropriate to determine the correct treatment of the apportionment factors for purposes of Article 2 (commencing with Section 25120) of Chapter 17 of Part 11. (4) Documents and information, including any questionnaires completed and submitted to the Internal Revenue Service, that are necessary to audit issues involving attribution of income to the United States or foreign jurisdictions under Section 882 of, or Subpart F of Part III of Subchapter N of, or similar provisions of, the Internal Revenue Code. (b) For purposes of this section: (1) Information for any year shall be retained for that period of time in which the taxpayers’ income or franchise tax liability to this state may be subject to adjustment, including all periods in which additional income or franchise taxes may be assessed, not to exceed eight years from the due date or extended due date of the return, or during which a protest is pending before the Franchise Tax Board, or an appeal is pending before the State Board of Equalization, or a lawsuit is pending in the courts of this state or the United States with respect to California franchise or income tax. (2) “Related party” means corporations that are related because one owns or controls, directly or indirectly, more than 50 percent of the stock of the other or because more than 50 percent of the voting stock of each is owned or controlled, directly or indirectly, by the same interests. (3) “Records” includes any books, papers, or other data. (c) (1) If a corporation subject to this section fails to maintain or fails to cause another to maintain records as required by subdivision (a), that corporation shall pay a penalty of ten thousand dollars ($10,000) for each taxable year with respect to which the failure occurs. (2) If any failure described in paragraph (1) continues for more than 90 days after the day on which the Franchise Tax Board mails notice of the failure to the corporation, that corporation shall pay a penalty (in addition to the amount required under paragraph (1)) of ten thousand dollars ($10,000) for each 30-day period (or fraction thereof) during which the failure continues after the expiration of the 90-day period. The additional penalty imposed by this subdivision shall not exceed a maximum of fifty thousand dollars ($50,000) if the failure to maintain or the failure to cause another to maintain is not willful. This maximum shall apply with respect to taxable years beginning on or after January 1, 1994, and before the earlier of the first day of the month following the month in which regulations are adopted pursuant to this section or December 31, 1995. (3) For purposes of this section, the time prescribed by regulations to maintain records (and the beginning of the 90-day period after notice by the Franchise Tax Board) shall be treated as not earlier than the last day on which (as shown to the satisfaction of the Franchise Tax Board) reasonable cause existed for failure to maintain the records. (d) (1) The Franchise Tax Board may apply the rules of paragraph (2) whether or not the board begins a proceeding to enforce a subpoena, or subpoena duces tecum, if subparagraphs (A), (B), and (C) apply: (A) For purposes of determining the correct treatment under Part 11 (commencing with Section 23001) of the items described in subdivision (a), the Franchise Tax Board issues a subpoena or subpoena duces tecum to a corporation to produce (either directly or as agent for the related party) any records or testimony. (B) The subpoena or subpoena duces tecum is not quashed in a proceeding begun under paragraph (3) and is not determined to be invalid in a proceeding begun under Section 19504 to enforce the subpoena or subpoena duces tecum. (C) The corporation does not substantially comply in a timely manner with the subpoena or subpoena duces tecum and the Franchise Tax Board has sent by certified or registered mail a notice to that corporation that it has not substantially complied. (D) If the corporation fails to maintain or fails to cause another to maintain records as required by subdivision (a), and by reason of that failure, the subpoena, or subpoena duces tecum, is quashed in a proceeding described in subparagraph (B) or the corporation is not able to provide the records requested in the subpoena or subpoena duces tecum, the Franchise Tax Board may apply the rules of paragraph (2) to any of the items described in subdivision (a) to which the records relate. (2) (A) All of the following shall be determined by the Franchise Tax Board in the Franchise Tax Board’s sole discretion from the Franchise Tax Board’s own knowledge or from information the Franchise Tax Board may obtain through testimony or otherwise: (i) The components that are a part of one or more unitary businesses for purposes of determining the income derived from or attributable to this state pursuant to Section 25101 or 25110. (ii) Amounts that are attributable to the classification of an item as business or nonbusiness income for purposes of Article 2 (commencing with Section 25120) of Chapter 17 of Part 11. (iii) The apportionment factors for purposes of Article 2 (commencing with Section 25120) of Chapter 17 of Part 11. (iv) The correct amount of income under Section 882 of, or Subpart F of Part III of Subchapter N of, or similar provisions of, the Internal Revenue Code. (B) This paragraph shall apply to determine the correct treatment of the items described in subdivision (a) unless the corporation is authorized by its related parties (in the manner and at the time as the Franchise Tax Board shall prescribe) to act as the related parties’ limited agent solely for purposes of applying Section 19504 with respect to any request by the Franchise Tax Board to examine records or produce testimony related to any item described in subdivision (a) or with respect to any subpoena or subpoena duces tecum for the records or testimony. The appearance of persons or the production of records by reason of the corporation being an agent shall not subject those persons or records to legal process for any purpose other than determining the correct treatment under Part 11 of the items described in subdivision (a). (C) Determinations made in the sole discretion of the Franchise Tax Board pursuant to this paragraph may be appealed to the State Board of Equalization, in the manner and at the time prescribed by Section 19045 or 19324, or may be the subject of an action to recover tax, in the manner and at a time prescribed by Section 19382. The review of determinations by the board or the court shall be limited to whether the determinations were arbitrary or capricious, or are not supported by substantial evidence. (3) (A) Notwithstanding any other law or rule of law, any reporting corporation to which the Franchise Tax Board issues a subpoena or subpoena duces tecum referred to in subparagraph (A) of paragraph (1) shall have the right to begin a proceeding to quash the subpoena or subpoena duces tecum not later than the 90th day after the subpoena or subpoena duces tecum was issued. In that proceeding, the Franchise Tax Board may seek to compel compliance with the subpoena or subpoena duces tecum. (B) Notwithstanding any other law or rule of law, any reporting corporation that has been notified by the Franchise Tax Board that it has determined that the corporation has not substantially complied with a subpoena or subpoena duces tecum referred to in paragraph (1) shall have the right to begin a proceeding to review the determination not later than the 90th day after the day on which the notice referred to in subparagraph (C) of paragraph (1) was mailed. If the proceeding is not begun on or before the 90th day, the determination by the Franchise Tax Board shall be binding and shall not be reviewed by any court. (C) The superior courts of the State of California for the Counties of Los Angeles, Sacramento, and San Diego, and for the City and County of San Francisco, shall have jurisdiction to hear any proceeding brought under subparagraphs (A) and (B). Any order or other determination in the proceeding shall be treated as a final order that may be appealed. (D) If any corporation takes any action as provided in subparagraphs (A) and (B), the running of any period of limitations under Sections 19057 to 19064, inclusive (relating to the assessment and collection of tax), or under Section 19704 (relating to criminal prosecutions) with respect to that corporation shall be suspended for the period during which the proceedings, and appeals therein, are pending. In no event shall any period expire before the 90th day after the day on which there is a final determination in the proceeding. (Amended by Stats. 2000, Ch. 862, Sec. 22. Effective January 1, 2001.)
  71. 19142.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If there is an underpayment of tax under Part 11, an additional amount is added to the tax at the rate set by Section 19521, except as otherwise provided in Sections 19147 and 19148 and subdivision (b).

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19142. (a) Except as provided in Sections 19147 and 19148 and subdivision (b), in the case of any underpayment of tax imposed under Part 11 (commencing with Section 23001) there shall be added to the tax for the taxable year an amount determined at the rate established under Section 19521 on the amount of the underpayment for the period of the underpayment. (b) (1) No addition to tax shall be imposed under this section to the extent that the underpayment was created or increased by any provision of law that is chaptered during and operative for the taxable year of the underpayment. (2) Notwithstanding Section 18415, this subdivision applies to penalties imposed on and after January 1, 2005. (Amended by Stats. 2005, Ch. 242, Sec. 8. Effective September 22, 2005.)
  72. 19144.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section defines how to calculate an underpayment and sets the applicable percentage at 95% for taxable years before January 1, 1998, and 100% for taxable years on or after that date.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19144. (a) For the purposes of Section 19142, the amount of the underpayment shall be the excess of the amount calculated in paragraph (1) over the amount calculated in paragraph (2). (1) (A) The amount of the installment that would be required to be paid if the estimated tax were equal to the applicable percentage of the tax shown on the return for the taxable year. (B) If no return was filed, the applicable percentage of the tax for that year. (2) The amount, if any, of the installment paid on or before the last date prescribed for payment. (b) For purposes of this section, the “applicable percentage” shall be as follows: (1) For taxable years beginning before January 1, 1998, 95 percent. (2) For taxable years beginning on or after January 1, 1998, 100 percent. (Amended by Stats. 2025, Ch. 231, Sec. 69. (SB 711) Effective October 1, 2025.)
  73. 19145.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    For Section 19142, the underpayment period starts when the installment was due and ends on the earlier of the due date in the third month after the taxable year ends or the date that portion is paid.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19145. For purposes of Section 19142, the period of the underpayment shall run from the date the installment was required to be made to whichever of the following dates is the earlier: (a) The 15th day of the third month following the close of the taxable year, except in the case of an organization described in Section 23731 subject to the tax imposed under Section 23731, in which case “fifth” shall be substituted for “third.” (b) With respect to any portion of the underpayment, the date on which that portion is paid. For purposes of this subdivision, a payment of estimated tax on any installment date shall be considered a payment of any previous underpayment only to the extent the payment exceeds the amount of the installment determined under subdivision (a) of Section 19144 for the installment date. (Amended by Stats. 2000, Ch. 862, Sec. 25. Effective January 1, 2001.)
  74. 19147.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    No addition to tax is imposed for an installment underpayment if enough estimated tax was paid by the installment due date and the amount meets the lesser of the listed calculations.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19147. (a) Notwithstanding Sections 19142 to 19145, inclusive, the addition to the tax with respect to any underpayment of any installment shall not be imposed if the total amount of all payments of estimated tax paid on or before the last date prescribed for the payment of the installment equals or exceeds the amount which would have been required to be paid on or before that date if the estimated tax were whichever of the following is the lesser: (1) (A) The tax shown on the return of the taxpayer for the preceding taxable year if a return showing a liability for tax was filed by the taxpayer for the preceding year and that preceding year was a year of 12 months. The tax shown on the return, in the case of the tax imposed by Article 3 (commencing with Section 23181) of Chapter 2 of Part 11, means the amount of tax shown on the return for the taxable year as prescribed in Section 19021. (B) In the case of a large corporation, subparagraph (A) shall not apply, except as provided in clauses (i) and (ii). (i) Subparagraph (A) shall apply for purposes of determining the amount of the first required installment for any taxable year. (ii) Any reduction in the first required installment by reason of clause (i) shall be recaptured by increasing the amount of the next required installment by the amount of that reduction. (2) (A) An amount equal to the applicable percentage specified in Section 19144 of the tax for the taxable year computed by placing on an annualized basis the taxable income: (i) For the first three months of the taxable year, in the case of the installment required to be paid in the fourth month. (ii) For the first three months of the taxable year, in the case of the installment required to be paid in the sixth month. (iii) For the first six months of the taxable year, in the case of the installment required to be paid in the ninth month. (iv) For the first nine months of the taxable year, in the case of the installment required to be paid in the 12th month of the taxable year. (B) (i) If the taxpayer makes an election under this clause, each of the following shall apply: (I) Clause (i) of subparagraph (A) shall be applied by substituting “two months” for “three months.” (II) Clause (ii) of subparagraph (A) shall be applied by substituting “four months” for “three months.” (III) Clause (iii) of subparagraph (A) shall be applied by substituting “seven months” for “six months.” (IV) Clause (iv) of subparagraph (A) shall be applied by substituting “ten months” for “nine months.” (ii) If the taxpayer makes an election under this clause, each of the following shall apply: (I) Clause (ii) of subparagraph (A) shall be applied by substituting “five months” for “three months.” (II) Clause (iii) of subparagraph (A) shall be applied by substituting “eight months” for “six months.” (III) Clause (iv) of subparagraph (A) shall be applied by substituting “eleven months” for “nine months.” (iii) An election under clause (i) or (ii) shall apply to the taxable year for which the election is made and shall be effective only if the election is made on or before the date required for the payment of the first required installment for that taxable year. (iv) This subparagraph shall apply to taxable years beginning on or after January 1, 1997. (C) For purposes of this paragraph, the taxable income shall be placed on an annualized basis in the following manner: (i) Multiply by 12 the taxable income referred to in subparagraph (A). (ii) Divide the resulting amount by the number of months in the taxable year referred to in subparagraph (A). “Taxable income” as used in this paragraph means “net income” includable in the measure of tax or “alternative minimum taxable income” (as defined by Section 23455). (D) In the case of any corporation which is subject to the tax imposed under Section 23731, any reference to taxable income shall be treated as including a reference to unrelated business taxable income and, except in the case of an election under subparagraph (B), each of the following shall apply: (i) Clause (i) of subparagraph (A) shall be applied by substituting “two months” for “three months.” (ii) Clause (ii) of subparagraph (A) shall be applied by substituting “four months” for “three months.” (iii) Clause (iii) of subparagraph (A) shall be applied by substituting “seven months” for “six months.” (iv) Clause (iv) of subparagraph (A) shall be applied by substituting “ten months” for “nine months.” (3) The applicable percentage specified in Section 19144 or more of the tax for the taxable year was paid by withholding of tax pursuant to Section 18662. (4) The applicable percentage specified in Section 19144 or more of the net income for the taxable year consists of items from which an amount was withheld pursuant to Section 18662, the amount of the first installment under Section 19025 equals at least the minimum franchise tax specified in Section 23153, and the amount of any installment under Section 19025 includes an amount equal to the applicable tax under Section 23800.5. (b) (1) For purposes of this section, “large corporation” means any corporation if that corporation (or any predecessor corporation) had taxable income (computed without regard to net operating loss deductions) of one million dollars ($1,000,000) or more for any taxable year during the testing period. (2) For purposes of this subdivision, “testing period” means the three taxable years immediately preceding the taxable year involved. (c) (1) Any dividend received from a closely held real estate investment trust by any person that owns (after application of Sections 856(d)(5) and 856(l)(3)(B) of the Internal Revenue Code) 10 percent or more (by vote or value) of the stock or beneficial interests in the trust shall be taken into account in computing annualized income installments under paragraph (2) of subdivision (a) in a manner similar to the manner under which partnership income inclusions are taken into account. (2) For purposes of paragraph (1), the term “closely held real estate investment trust” means a real estate investment trust with respect to which five or fewer persons own (after application of Sections 856(d)(5) and 856(l)(3)(B) of the Internal Revenue Code) 50 percent or more (by vote or value) of the stock or beneficial interests in the trust. (3) The amendments made to this section by the act adding this subdivision shall apply to estimated tax payments due on or after January 1, 2001. (Amended by Stats. 2001, Ch. 4, Sec. 1. Effective March 29, 2001.)
  75. 19148.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    An addition to tax for an installment underpayment is not imposed if estimated tax payments made by the due date reach the required percentage. The Franchise Tax Board may also set rules for figuring the base period percentage in certain cases.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19148. (a) Notwithstanding Sections 19142 to 19147, inclusive, the addition to the tax with respect to any underpayment of any installment shall not be imposed if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment of that installment equals or exceeds the applicable percentage specified in Section 19144 of the amount determined under subdivision (b). (b) The amount determined under this subdivision for any installment shall be determined in the following manner: (1) Take the net income for all months during the taxable year preceding the filing month. (2) Divide that amount by the base period percentage for all months during the taxable year preceding the filing month. (3) Determine the tax on the amount determined under paragraph (2). (4) Multiply the tax computed under paragraph (3) by the base period percentage for the filing months and all months during the taxable year preceding the filing month. (c) For purposes of this subdivision: (1) The base period percentage for any period of months shall be the average percent which the net income for the corresponding months in each of the three preceding taxable years bears to the net income for the three preceding taxable years. (2) “Filing month” means the month in which the installment is required to be paid. (3) This subdivision shall only apply if the base period percentage for any six consecutive months of the taxable year equals or exceeds 70 percent. (4) The Franchise Tax Board may by regulations provide for the determination of the base period percentage in the case of reorganizations, new corporations, and other similar circumstances. (Amended by Stats. 2000, Ch. 862, Sec. 27. Effective January 1, 2001.)
  76. 19149.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If estimated tax due is only the minimum franchise tax (and any applicable wholly owned subsidiary tax), the installment underpayment addition is calculated only on those amounts. The section does not apply to a large corporation defined in Section 19147(b).

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19149. (a) Notwithstanding any other provision of Sections 19142 to 19151, inclusive, if the amount of estimated tax due and payable under Section 19025 is only the minimum franchise tax imposed by Section 23153 and, if applicable, the tax of a wholly owned subsidiary under Section 23800.5, then the addition to the tax with respect to any underpayment of any installment imposed by Section 19142 shall be calculated only on the basis of the amount of the minimum franchise tax and the amount of the tax of each wholly owned subsidiary. (b) This section shall not apply to a large corporation as defined in subdivision (b) of Section 19147. (Amended by Stats. 1998, Ch. 7, Sec. 22. Effective March 14, 1998.)
  77. 19150.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    For taxable years shorter than 12 months, the application of Sections 19142 to 19151 must follow regulations prescribed by the Franchise Tax Board.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19150. The application of Sections 19142 to 19151, inclusive, to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Franchise Tax Board. (Amended by Stats. 2000, Ch. 862, Sec. 28. Effective January 1, 2001.)
  78. 19151.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    An exempt organization with a retroactively revoked exemption is not subject to the installment underpayment addition to tax unless it had notice that the estimated tax should have been paid.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19151. Notwithstanding Sections 19142 to 19150, inclusive, the addition to the tax with respect to underpayment of any installment shall not be imposed on an exempt organization described in Section 23731 whose exemption is retroactively revoked unless the organization described in Section 23731 has notice that the estimated tax should have been paid. The denial of the organization’s exemption application or the revocation of its exemption by the Internal Revenue Service normally satisfies the notice requirement. (Amended by Stats. 1999, Ch. 987, Sec. 75.3. Effective October 10, 1999.)
  79. 19161.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section limits when certain tax additions may be imposed for late payment while a bankruptcy case is pending.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19161. (a) An addition to tax shall not be made under Section 19132, 19136, or 19142 for failure to make timely payment of tax with respect to a period during which a case is pending under Title 11 of the United States Code in either of the following situations: (1) If that tax was incurred by the estate and the failure occurred pursuant to an order of the court finding probable insufficiency of funds of the estate to pay administrative expenses. (2) If: (A) That tax was incurred by the debtor before the earlier of the order for relief or (in the involuntary case) the appointment of a trustee, and (B) (i) The petition was filed before the due date prescribed by law (including extensions) for filing a return of that tax, or (ii) The date for making the addition to the tax occurs on or after the day on which the petition was filed. (b) Subdivision (a) does not apply to any liability for an addition to the tax which arises from the failure to pay or deposit a tax withheld or collected from others and required to be paid to the State of California. (Amended by Stats. 2016, Ch. 86, Sec. 285. (SB 1171) Effective January 1, 2017.)
  80. 19164.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section imposes an accuracy-related penalty and a fraud penalty, and lets the Franchise Tax Board publish a list of tax positions it believes lack substantial authority.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19164. (a) (1) (A) An accuracy-related penalty shall be imposed under this part and shall be determined in accordance with Section 6662 of the Internal Revenue Code, relating to imposition of accuracy-related penalty on underpayments, except as otherwise provided. (B) (i) Except for understatements relating to reportable transactions to which Section 19164.5 applies, in the case of any proposed deficiency assessment issued after the last date of the amnesty period specified in Chapter 9.1 (commencing with Section 19730) for any taxable year beginning prior to January 1, 2003, the penalty specified in Section 6662(a) of the Internal Revenue Code shall be computed by substituting “40 percent” for “20 percent.” (ii) Clause (i) shall not apply to any taxable year of a taxpayer beginning prior to January 1, 2003, if, as of the start date of the amnesty program period specified in Section 19731, the taxpayer is then under audit by the Franchise Tax Board, or the taxpayer has filed a protest under Section 19041, or the taxpayer has filed an appeal under Section 19045, or the taxpayer is engaged in settlement negotiations under Section 19442, or the taxpayer has a pending judicial proceeding in any court of this state or in any federal court relating to the tax liability of the taxpayer for that taxable year. (2) With respect to corporations, this subdivision shall apply to all of the following: (A) All taxable years beginning on or after January 1, 1990. (B) Any other taxable year for which an assessment is made after July 16, 1991. (C) For purposes of this section, references in Section 6662(e) of the Internal Revenue Code and the regulations thereunder, relating to treatment of an affiliated group that files a consolidated federal return, are modified to apply to those entities required to be included in a combined report under Section 25101 or 25110. For these purposes, entities included in a combined report pursuant to paragraph (4) or (6) of subdivision (a) of Section 25110 shall be considered only to the extent required to be included in the combined report. (3) Section 6662(d)(1)(B) of the Internal Revenue Code is modified to provide that in the case of a corporation, other than an “S” corporation, there is a substantial understatement of tax for any taxable year if the amount of the understatement for the taxable year exceeds the lesser of: (A) Ten percent of the tax required to be shown on the return for the taxable year (or, if greater, two thousand five hundred dollars ($2,500)). (B) Five million dollars ($5,000,000). (4) Section 6662(d)(2)(A) of the Internal Revenue Code is modified to additionally provide that the excess determined under Section 6662(d)(2)(A) of the Internal Revenue Code shall be determined without regard to items to which Section 19164.5 applies and without regard to items with respect to which a penalty is imposed by Section 19774. (5) The provisions of Sections 6662(e)(1) and 6662(h)(2) of the Internal Revenue Code shall apply to returns filed on or after January 1, 2010. (b) The amendments made by Section 605(a)(2) of Public Law 117-328 adding Sections 6662(b)(10) and 6662(h)(2)(D) to, and amending Section 6664(c)(2) of, the Internal Revenue Code, relating to application of accuracy-related penalties, shall apply to returns filed on or after January 1, 2024. (c) For purposes of Section 6662(d) of the Internal Revenue Code, Section 6664 of the Internal Revenue Code, Section 6694(a)(1) of the Internal Revenue Code, and this part, the Franchise Tax Board may prescribe a list of positions for which the Franchise Tax Board believes there is not substantial authority or there is no reasonable belief that the tax treatment is more likely than not the proper tax treatment. That list (and any revisions thereof) shall be published through the use of Franchise Tax Board Notices or other published positions. In addition, the “listed transactions” identified and published pursuant to the preceding sentence shall be published on the internet website of the Franchise Tax Board. (d) A fraud penalty shall be imposed under this part and shall be determined in accordance with Section 6663 of the Internal Revenue Code, relating to imposition of fraud penalty, except as otherwise provided. (e) (1) Section 6664 of the Internal Revenue Code, relating to definitions and special rules, shall apply, except as otherwise provided. (2) Section 6664(c)(3) of the Internal Revenue Code shall apply to returns filed on or after January 1, 2010. (3) Section 6664(c)(4) of the Internal Revenue Code shall apply to appraisals prepared with respect to returns or submissions filed on or after January 1, 2010. (f) Except for purposes of subdivision (e) of Section 19774, Section 6662(b)(6) of the Internal Revenue Code shall not apply. (g) Except for purposes of subdivision (e) of Section 19774, Section 6662(i) of the Internal Revenue Code, relating to increase in penalty in case of nondisclosed noneconomic substance transactions, shall not apply. (h) Section 6665 of the Internal Revenue Code, relating to applicable rules, shall apply, except as otherwise provided. (i) The amendments made to this section by Chapter 14 of the Statutes of 2011 shall apply to notices mailed on or after January 1, 2012. (Amended by Stats. 2024, Ch. 34, Sec. 29. (SB 167) Effective June 27, 2024.)
  81. 19164.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    For understatement calculations under Section 19164(a), amounts tied to the teacher retention tax credit must not be included. The section applies only to tax credits claimed under Section 17052.2 for taxable years starting on or after January 1, 2000 and before January 1, 2001.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19164.1. (a) Any understatement determined pursuant to subdivision (a) of Section 19164 (relating to the accuracy-related penalty) may not include amounts that are attributable to the credit allowed under Section 17052.2 (relating to the teacher retention tax credit). (b) This section applies only to tax credits claimed under Section 17052.2 for taxable years beginning on or after January 1, 2000, and before January 1, 2001. (Added by Stats. 2001, Ch. 410, Sec. 1. Effective January 1, 2002.)
  82. 19164.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A reportable transaction accuracy-related penalty must be imposed under this part, using Section 6662A rules as modified here, with exceptions for amounts already penalized under Section 19774.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19164.5. (a) A reportable transaction accuracy-related penalty shall be imposed under this part and shall be determined in accordance with Section 6662A of the Internal Revenue Code, relating to the imposition of an accuracy-related penalty on understatements with respect to reportable transactions, except as otherwise provided. (b) (1) The reportable transaction understatement, as determined under Section 6662A(b) of the Internal Revenue Code, is modified to not include amounts to which the penalty of Section 19774 is imposed. (2) Section 6662A(b)(1)(A)(ii) of the Internal Revenue Code is modified to substitute the phrase “Sections 17041, 23151, 23181, or 23501” for “section 1 (section 11 in the case of a taxpayer which is a corporation).” (3) Section 6662A(b)(1)(B) of the Internal Revenue Code is modified to substitute the phrase “Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001)” for “subtitle A.” (4) Section 6662A(b)(2)(B) of the Internal Revenue Code is modified to substitute the phrase “income or franchise tax” for “Federal income tax.” (5) Section 6662A(e)(1) of the Internal Revenue Code is modified to additionally provide that the amount of the understatement is increased by noneconomic transaction understatements, as defined in Section 19774. (c) Section 6662A(e)(2) of the Internal Revenue Code is modified to additionally provide that Section 6662A of the Internal Revenue Code does not apply to amounts to which a penalty is imposed under Section 19774. (d) The provisions of subdivision (f) of Section 19772, relating to the rescission of the penalty by the Chief Counsel, shall apply to any penalty imposed by this section. (Added by Stats. 2005, Ch. 691, Sec. 47.2. Effective October 7, 2005.)
  83. 19166.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A penalty applies when a tax return preparer understates a taxpayer’s liability, with special rules for certain transactions and a refund-based stay of collection.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19166. (a) A penalty shall be imposed for understatement of any taxpayer’s liability by a tax return preparer and shall be determined in accordance with Section 6694 of the Internal Revenue Code, relating to understatement of taxpayer’s liability by tax return preparer, except as otherwise provided. (b) (1) Except as provided in paragraph (2), Section 6694(a)(1) of the Internal Revenue Code is modified to substitute “$250” for “$1,000.” (2) For taxpayers that have a reportable transaction, as defined in Section 6707A(c)(1) of the Internal Revenue Code, with respect to which the requirements of Section 6664(d)(2)(A) of the Internal Revenue Code are not met, any listed transaction, as defined in Section 6707A(c)(2) of the Internal Revenue Code, or a gross misstatement within the meaning of Section 6404(g)(2)(D) of the Internal Revenue Code, paragraph (1) shall not apply. (c) Section 6694(c) of the Internal Revenue Code shall not apply and, in lieu thereof, the following shall apply: (1) If, within 30 days after the day on which notice and demand of any penalty under Section 6694(a) or 6694(b) of the Internal Revenue Code is made against any person who is an income tax return preparer, that person pays an amount which is not less than 15 percent of the amount of that penalty and files a claim for refund of the amount so paid, no levy or proceeding in court for the collection of the remainder of that penalty shall be made, begun, or prosecuted until the final resolution of a proceeding begun as provided in paragraph (2). Notwithstanding Section 19381, the beginning of that proceeding or levy during the time that prohibition is in force may be enjoined in a proceeding in the superior court. Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of that penalty in a proceeding begun as provided in paragraph (2). (2) If, within 30 days after the day on which a claim for refund of any partial payment of any penalty under Section 6694(a) or 6694(b) of the Internal Revenue Code is denied (or, if earlier, within 30 days after the expiration of six months after the day on which the claim for refund has been filed), the income tax return preparer fails to begin a proceeding in the superior court for the determination of his or her liability for that penalty, paragraph (1) shall cease to apply with respect to that penalty, effective on the day following the close of the applicable 30-day period referred to in this paragraph. (3) The running of the period of limitations provided in Section 19371 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Franchise Tax Board is prohibited from collecting by levy or a proceeding in court. (d) The amendments made to this section by the act adding this subdivision shall apply to returns prepared after the effective date of the act adding this subdivision. (Amended by Stats. 2010, Ch. 14, Sec. 47. (SB 401) Effective January 1, 2011.)
  84. 19167.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A tax preparer who fails to register with the California Tax Education Council can be penalized, unless the failure was due to reasonable cause and not willful neglect.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19167. (a) A penalty shall be imposed under this section for any of the following: (1) In accordance with Section 6695(a) of the Internal Revenue Code, for failure to furnish a copy of the return to the taxpayer, as required by Section 18625. (2) In accordance with Section 6695(c) of the Internal Revenue Code, for failure to furnish an identifying number, as required by Section 18624. (3) In accordance with Section 6695(d) of the Internal Revenue Code, for failure to retain a copy or list, as required by Section 18625 or for failure to retain an electronic filing declaration, as required by Section 18621.5. (4) Failure to register as a tax preparer with the California Tax Education Council, as required by Section 22253 of the Business and Professions Code, unless it is shown that the failure was due to reasonable cause and not due to willful neglect. (A) The amount of the penalty under this paragraph for the first failure to register is two thousand five hundred dollars ($2,500). This penalty shall be waived if proof of registration is provided to the Franchise Tax Board within 90 days from the date notice of the penalty is mailed to the tax preparer. (B) The amount of the penalty under this paragraph for a failure to register, other than the first failure to register, is five thousand dollars ($5,000). (C) The Franchise Tax Board shall not impose the penalties authorized by this paragraph until either one of the following has occurred: (i) Commencing January 1, 2006, and continuing each year thereafter, there is an appropriation in the Franchise Tax Board’s annual budget to fund the costs associated with the penalty authorized by this paragraph. (ii) (I) An agreement has been executed between the California Tax Education Council and the Franchise Tax Board that provides that an amount equal to all first year costs associated with the penalty authorized by this paragraph shall be received by the Franchise Tax Board. For purposes of this subclause, first year costs include, but are not limited to, costs associated with the development of processes or systems changes, if necessary, and labor. (II) An agreement has been executed between the California Tax Education Council and the Franchise Tax Board that provides that the annual costs incurred by the Franchise Tax Board associated with the penalty authorized by this paragraph shall be reimbursed by the California Tax Education Council to the Franchise Tax Board. (III) Pursuant to the agreement described in subclause (I), the Franchise Tax Board has received an amount equal to the first year costs described in that subclause. (5) In accordance with Section 6695(g) of the Internal Revenue Code, relating to failure to be diligent in determining eligibility for certain tax benefits. (b) Section 6695(h) of the Internal Revenue Code, relating to adjustment for inflation, shall not apply. (Amended by Stats. 2025, Ch. 231, Sec. 70. (SB 711) Effective October 1, 2025. Applicable to taxable years beginning on or after January 1, 2015, as provided in Sec. 41 of Stats. 2015, Ch. 359.)
  85. 19168.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    For penalties under Sections 19166 or 19167, these rules add to any other penalties and exclude Article 3 deficiency-assessment rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19168. The following rules shall apply to any penalty imposed under Section 19166 or 19167: (a) The penalties shall be in addition to any other penalties provided by law. (b) Article 3 (commencing with Section 19031) of this chapter (relating to deficiency assessments) shall not be applicable. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  86. 19169.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A tax preparer who cashes or negotiates certain tax warrants must pay a $250 penalty for each warrant, unless a stated exception applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19169. (a) In addition to the criminal penalty provided by Section 19712, any tax preparer who endorses or otherwise negotiates (directly or through an agent) any warrant made in respect of the taxes imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) which is issued to a taxpayer (other than the tax preparer) shall pay a penalty of two hundred fifty dollars ($250) with respect to each warrant. The preceding sentence shall not apply with respect to the deposit by a bank (as defined by Section 581 of the Internal Revenue Code) of the full amount of the warrant in the taxpayer’s account in that bank for the benefit of the taxpayer. (b) For purposes of subdivision (a), “tax preparer” means any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any return of tax imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) or any claim for refund of tax imposed by Part 10 or Part 11. For purposes of the preceding sentence, the preparation of a substantial portion of a return or claim for refund shall be treated as if it were the preparation of that return or claim for refund. A person shall not be a “tax preparer” merely because the person does any of the following: (1) Furnishes typing, reproducing, or other mechanical assistance. (2) Prepares a return or claim for refund of the employer (or of an officer or employee of the employer) by whom that person is regularly and continuously employed. (3) Prepares as a fiduciary a return or claim for refund for any person. (c) This section shall not apply where the tax preparer has advanced the taxpayer an amount of money equal to or greater than the amount of the taxpayer’s refund. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  87. 19170.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    An income tax preparer subject to Section 18621.9 must pay a $50 penalty for each acceptable individual income tax return prepared but not electronically filed, unless the failure was due to reasonable cause and not willful neglect.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19170. (a) An income tax preparer that is subject to Section 18621.9 is liable for a penalty in the amount of fifty dollars ($50) for each acceptable individual income tax return prepared by that income tax preparer that is not electronically filed, unless it is shown that the failure to electronically file that acceptable individual income tax return is due to reasonable cause and not due to willful neglect. (b) For purposes of this section, reasonable cause includes, but is not limited to, a taxpayer’s election not to electronically file an acceptable individual income tax return in compliance with Section 18621.9. (c) This section shall apply to acceptable individual income tax returns required to be filed on or after January 1, 2005. (Repealed (by Sec. 1) and added by Stats. 2004, Ch. 267, Sec. 3. Effective August 23, 2004. Added section applicable January 1, 2005, as provided in subd. (c).)
  88. 19171.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A business entity that must electronically file a return and files it in a noncompliant way is subject to a $100 penalty for the first failure and $500 for each later failure, unless the failure was due to reasonable cause and not willful neglect.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19171. (a) A business entity required to electronically file a return pursuant to Section 18621.10 that files a return in a manner that fails to comply with Section 18621.10, shall be subject to a penalty in the amount of one hundred dollars ($100) for an initial failure and a penalty in the amount of five hundred dollars ($500) for each subsequent failure unless the failure is due to reasonable cause, and not willful neglect. (b) If a group return is filed on behalf of eligible electing taxpayer members of a combined reporting group, the penalties described in subdivision (a) shall apply to the combined reporting group and not to a taxpayer member of the combined reporting group. (c) This section shall apply to returns filed for taxable years beginning on or after January 1, 2017. (Added by Stats. 2014, Ch. 478, Sec. 6. (AB 2754) Effective January 1, 2015.)
  89. 19172.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Partnerships that must file certain tax returns can owe a monthly penalty if they miss the filing deadline or omit required information, unless the failure is due to reasonable cause.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19172. (a) In addition to the penalty imposed by Section 19706 (relating to willful failure to file return, supply information, or pay tax), if any partnership required to file a return under Section 18633 or 18633.5 for any taxable year does either of the following: (1) Fails to file the return at the time prescribed therefor (determined with regard to any extension of time for filing). (2) Files a return which fails to show the information required under Section 18633 or 18633.5, that partnership shall be liable for a penalty determined under subdivision (b) for each month (or fraction thereof) during which that failure continues (but not to exceed 12 months), unless it is shown that the failure is due to reasonable cause. (b) For purposes of subdivision (a), the amount determined under this subdivision for any month is the product of the following: (1) Eighteen dollars ($18), multiplied by (2) The number of persons who were partners in the partnership during any part of the taxable year. (c) The penalty imposed by subdivision (a) shall be assessed against the partnership. (d) Article 3 (commencing with Section 19031) of this chapter (relating to deficiency assessments) shall not apply with respect to the assessment or collection of any penalty imposed by subdivision (a). (e) The amendments made to this section by the act adding this subdivision shall apply to returns required to be filed after the effective date of the act adding this subdivision. (Amended by Stats. 2010, Ch. 14, Sec. 48. (SB 401) Effective January 1, 2011.)
  90. 19172.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    An S corporation that must file a return and fails to file, or files an incomplete return, can be liable for a monthly penalty unless the failure was due to reasonable cause.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19172.5. (a) In addition to the penalty imposed by Section 19706, if any “S” corporation required to file a return under Section 18601 for any taxable year fails to file the return at the time prescribed therefor (determined with regard to any extension of time for filing), or files a return that fails to show the information required under Section 18601, then that “S” corporation shall be liable for a penalty determined under subdivision (b) for each month (or fraction thereof) during which that failure continues (but not to exceed 12 months), unless that failure is due to reasonable cause. (b) (1) For purposes of subdivision (a), the amount determined under this subdivision for any month is the product of the following: (2) Eighteen dollars ($18), multiplied by the number of persons who were shareholders in the “S” corporation during any part of the taxable year. (c) The penalty imposed by subdivision (a) shall be assessed against the “S” corporation. (d) Article 3 (commencing with Section 19031), relating to deficiency assessments, shall not apply with respect to the assessment or collection of any penalty imposed by subdivision (a). (e) This section shall apply to returns required to be filed after the effective date of the act adding this section. (Added by Stats. 2010, Ch. 14, Sec. 49. (SB 401) Effective January 1, 2011.)
  91. 19173.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A penalty applies for failing to keep or provide advisee lists for reportable transactions, with special rules for listed transactions and a possible eight-year assessment period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19173. (a) A penalty shall be imposed under this part for failure to maintain lists of advisees with respect to reportable transactions and shall be determined in accordance with Section 6708 of the Internal Revenue Code, except as otherwise provided. (b) If a material advisor fails to meet the requirements of subdivision (d) of Section 18648 with respect to a listed transaction, as defined in Section 6707A(c)(2) of the Internal Revenue Code, an additional penalty shall be imposed equal to the greater of: (1) One hundred thousand dollars ($100,000). (2) Fifty percent of the gross income that the material advisor derived from that activity. (c) A penalty imposed under this section does not apply if it is shown that the additional information required under paragraph (1) of subdivision (d) of Section 18648 was not identified in a Franchise Tax Board notice issued prior to the date the transaction or shelter was entered into. (d) The penalty imposed by subdivision (a) shall be assessed against the person required to maintain or provide a list under Section 18648. The penalty may be assessed at any time during the period ending eight years after the failure has occurred. (e) (1) The Chief Counsel of the Franchise Tax Board may rescind all or any portion of any penalty imposed by this section with respect to a list required to be maintained or provided under Section 18648, if all of the following apply: (A) The violation is with respect to a reportable transaction, other than a listed transaction, as defined in Section 6707A(c)(2) of the Internal Revenue Code. (B) The person on whom the penalty is imposed has a history of complying with the requirements of this part and Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). (C) It is shown that the violation is due to an unintentional mistake of fact. (D) Imposing the penalty would be against equity and good conscience. (E) Rescinding the penalty would promote compliance with the requirements of this part and Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) and effective tax administration. (2) The exercise of authority under paragraph (1) shall be at the sole discretion of the Chief Counsel of the Franchise Tax Board and may not be delegated. (3) Notwithstanding any other law or rule of law, any determination under this subdivision may not be reviewed in any administrative or judicial proceeding. (f) Article 3 (commencing with Section 19031) of this chapter (relating to deficiency assessments) shall not apply with respect to the assessment or collection of any penalty imposed by subdivision (a). (g) The penalty imposed by this section is in addition to any penalty imposed under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part. (Amended by Stats. 2005, Ch. 691, Sec. 47.4. Effective October 7, 2005.)
  92. 19175.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A person or entity that must file certain returns and fails to report payroll-related remuneration on time may face a penalty.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19175. (a) In addition to the penalty imposed by Section 19183 (relating to failure to file information returns), if any person or entity fails to report amounts paid as remuneration for personal services as required under Section 13050 of the Unemployment Insurance Code or Section 18631 on the date prescribed therefor (determined with regard to any extension of time for filing), that person or entity may be liable for a penalty determined under subdivision (b). (b) For purposes of subdivision (a), the amount determined under this subdivision is the maximum rate under Section 17041 multiplied by the unreported amounts paid as remuneration for personal services. (c) The penalty imposed by subdivision (a) shall be assessed against that person or entity required to file a return under Section 13050 of the Unemployment Insurance Code or Section 18631. (d) Article 3 (commencing with Section 19031) of this chapter (relating to deficiency assessments) shall not apply with respect to the assessment or collection of any penalty imposed by subdivision (a). (e) The penalty imposed under subdivision (a) shall be in lieu of the penalty imposed under Section 13052.5 of the Unemployment Insurance Code (relating to unreported compensation). In the event that a penalty is imposed under this section and Section 13052.5 of the Unemployment Insurance Code, only the penalty imposed under Section 13052.5 of the Unemployment Insurance Code shall apply. (Amended by Stats. 2007, Ch. 156, Sec. 2. Effective January 1, 2008.)
  93. 19176.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    An individual who makes a qualifying no-reasonable-basis statement that reduces certain unemployment withholding must pay a $500 penalty, unless the Franchise Tax Board waives it.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19176. (a) In addition to any criminal penalty provided by law if: (1) Any individual makes a statement under Section 13040, 13041, or 13042 of the Unemployment Insurance Code which results in a decrease in the amounts deducted and withheld under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code; and (2) As of the time the statement was made, there was no reasonable basis for the statement, the individual shall pay a penalty of five hundred dollars ($500) for the statement. Any penalty so imposed shall be paid upon notice and demand from the Franchise Tax Board and shall be collected as a tax. (b) The Franchise Tax Board may waive (in whole or in part) the penalty imposed under subdivision (a) if the taxes imposed under Part 10 (commencing with Section 17001) with respect to the individual for the taxable year are equal to or less than the sum of both of the following: (1) The credits against those taxes allowed by Chapter 2 (commencing with Section 17041) of Part 10 and Section 19002. (2) The payments of estimated tax which are considered payments on account of those taxes. (c) This section supersedes Section 13101 of the Unemployment Insurance Code and shall apply to acts and failures to act after December 31, 1981. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  94. 19177.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A penalty must be imposed for promoting abusive tax shelters.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19177. A penalty shall be imposed for promoting abusive tax shelters and shall be determined in accordance with the provisions of Section 6700 of the Internal Revenue Code, except as otherwise provided. (Amended by Stats. 2005, Ch. 691, Sec. 47.5. Effective October 7, 2005.)
  95. 19178.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A penalty applies to aiding and abetting understatement of tax liability, and the amount is determined under Internal Revenue Code Section 6701.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19178. A penalty shall be imposed for aiding and abetting understatement of tax liability. The penalty shall be determined in accordance with Section 6701 of the Internal Revenue Code. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  96. 19179.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    This section imposes a penalty for filing a frivolous return and ties it to Internal Revenue Code Section 6702, with special California modifications.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19179. (a) A penalty shall be imposed for filing a frivolous return and shall be determined in accordance with Section 6702 of the Internal Revenue Code, except as otherwise provided. (b) Section 6702 of the Internal Revenue Code shall be applied to returns required to be filed under this part. (c) Section 6702 of the Internal Revenue Code is modified as follows: (1) (A) By substituting the phrase “tax imposed under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part” for the phrase “tax imposed by this title” contained therein. (B) By substituting the phrase “frivolous or is based on a position that the Franchise Tax Board has identified as frivolous under subdivision (d) of Section 19179” for the term “frivolous” contained therein. (C) By substituting the phrase “reflects a desire to delay or impede the administration of federal income tax laws as determined by the Secretary of the Treasury or the administration of the tax imposed under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part as determined by the Franchise Tax Board” for the phrase “reflects a desire to delay or impede the administration of Federal tax laws” contained therein. (D) By substituting the phrase “is based on a position which the Secretary of the Treasury has identified as frivolous under Section 6702(c) of the Internal Revenue Code or the Franchise Tax Board has identified as frivolous under subdivision (d)” for the phrase “is based on a position which the Secretary has identified as frivolous under subsection (c).” (E) By substituting the phrase “If the Franchise Tax Board provides a person with notice that a submission is a specified frivolous submission and the person withdraws that submission within 30 days after the notice, the penalty imposed under Section 6702(b)(1) of the Internal Revenue Code does not apply with respect to that submission” for the phrase “If the Secretary provides a person with notice that a submission is a specified frivolous submission and such person withdraws such submission within 30 days after such notice, the penalty imposed under paragraph (1) shall not apply with respect to such submission.” (2) Section 6702(b)(2)(B) of the Internal Revenue Code shall not apply and, in lieu thereof, the phrase “specified submission” means any of the following: (A) A protest under Section 19041. (B) A request for a hearing under Section 19044. (C) An application under any of the following sections: (i) Section 19008, relating to agreements for payment of tax liability in installments. (ii) Section 19443, relating to compromises. (iii) Section 21004, relating to actions of the Taxpayers’ Rights Advocate. (iv) Section 21015.5, relating to a request for review prior to levy. (d) (1) The Franchise Tax Board shall prescribe (and periodically revise) a list of positions which the Secretary of the Treasury for federal income tax purposes or the Franchise Tax Board has identified as being frivolous for purposes of this section. (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or prescribed by the Franchise Tax Board pursuant to paragraph (1). (e) (1) The Chief Counsel of the Franchise Tax Board may rescind all or any portion of any penalty imposed by this section if both of the following apply: (A) Imposing the penalty would be against equity and good conscience. (B) Rescinding the penalty would promote compliance with the requirements of this part and Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) and effective tax administration. (2) The exercise of authority under paragraph (1) shall be at the sole discretion of the Chief Counsel of the Franchise Tax Board and may not be delegated. (3) Notwithstanding any other law or rule of law, any determination under this subdivision may not be reviewed in any administrative or judicial proceeding. (f) The penalties imposed by this section shall be in addition to any other penalty provided by law. (Amended by Stats. 2010, Ch. 14, Sec. 50. (SB 401) Effective January 1, 2011.)
  97. 19180.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section puts the burden of proof on the Franchise Tax Board in certain penalty cases and limits collection while a qualifying refund-and-court process is pending.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19180. (a) In any proceeding involving the issue of whether or not any person is liable for a penalty under Section 19177, 19178, or 19179, the burden of proof with respect to that issue shall be on the Franchise Tax Board. (b) Sections 19041 to 19049, inclusive, (relating to deficiency procedures) shall not apply with respect to the assessment or collection of the penalties provided by Section 19177, 19178, or 19179. (c) (1) If, within 30 days after the day on which notice and demand of any penalty under Section 19177 or 19178 is made against any person, that person pays an amount which is not less than 15 percent of the amount of that penalty and files a claim for refund of the amount so paid, no levy or proceeding in court for the collection of the remainder of that penalty shall be made, begun, or prosecuted until the final resolution of a proceeding begun as provided in paragraph (2). Notwithstanding Section 19381, the beginning of that proceeding or levy during the time that prohibition is in force may be enjoined by a proceeding in the superior court. Nothing in this paragraph shall be construed to prohibit any counterclaim for the remainder of that penalty in a proceeding begun as provided in paragraph (2). (2) If, within 30 days after the day on which the claim for refund of any partial payment of any penalty under Section 19177 or 19178 is denied (or, if earlier, within 30 days after the expiration of six months after the day on which a claim for refund was filed), the person fails to begin a proceeding in the superior court for the determination of the liability for that penalty, paragraph (1) shall cease to apply with respect to that penalty, effective on the day following the close of the applicable 30-day period referred to in this paragraph. (3) The running of the period of limitations provided in Section 19371 on the collection by levy or by a proceeding in court in respect of any penalty described in paragraph (1) shall be suspended for the period during which the Franchise Tax Board is prohibited from collecting by levy or a proceeding in court. (Amended by Stats. 2002, Ch. 374, Sec. 6. Effective January 1, 2003.)
  98. 19181.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A penalty applies if a person subject to tax under Part 10 or Part 11 fails to meet Section 18649’s original issue discount reporting requirements.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19181. A penalty shall be imposed for failing to meet the requirements of Section 18649, relating to original issue discount reporting requirements with respect to any person subject to tax under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). The penalty shall be determined in accordance with Section 6706 of the Internal Revenue Code. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  99. 19182.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A penalty applies for failing to provide information required by Section 18628, with specific exceptions and a rescission power for the Chief Counsel of the Franchise Tax Board.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19182. (a) A penalty shall be imposed for failure to furnish information pursuant to Section 18628 and shall be determined in accordance with Section 6707 of the Internal Revenue Code, relating to failure to furnish information regarding reportable transactions, except as otherwise provided. (b) Article 3 (commencing with Section 19031) of this chapter (relating to deficiency assessments) does not apply in respect of the assessment or collection of any penalty imposed under this section. (c) A penalty under this section does not apply if it is shown that the additional information required under paragraph (2) of subdivision (d) of Section 18628 was not identified in a Franchise Tax Board notice issued prior to the date the transaction or shelter was entered into. (d) The provisions of subdivision (e) of Section 19173, relating to the rescission of the penalty by the Chief Counsel of the Franchise Tax Board, shall apply to any penalty imposed by this section. (Amended by Stats. 2005, Ch. 691, Sec. 47.7. Effective October 7, 2005.)
  100. 19182.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A penalty is imposed for failing to meet Section 18648.5 requirements, with the amount determined under Internal Revenue Code Section 6714.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19182.5. (a) A penalty shall be imposed for failing to meet the requirements of Section 18648.5 and the penalty amount shall be determined in accordance with Section 6714 of the Internal Revenue Code. (b) No penalty shall be imposed under paragraph (1) upon a showing that the requirements in Section 6115 of the Internal Revenue Code have been met with respect to that contribution for federal purposes. (c) The provisions of this section shall apply to quid pro quo contributions made on or after January 1, 1997. (Added by Stats. 1997, Ch. 611, Sec. 61. Effective October 3, 1997.)
  101. 19183.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section imposes penalties for failing to file correct information returns, furnish correct payee statements, or comply with other information reporting rules, and it sets a $10 penalty per failure for missing a required written explanation, up to $5,000 per year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19183. (a) (1) A penalty shall be imposed for failure to file correct information returns, as required by this part, and that penalty shall be determined in accordance with Section 6721 of the Internal Revenue Code, relating to failure to file correct information returns. (2) Section 6721(e) of the Internal Revenue Code, relating to penalty in case of intentional disregard, is modified to the extent that the reference to Section 6041A(b) of the Internal Revenue Code, relating to direct sales of five thousand dollars ($5,000) or more, does not apply. (b) (1) A penalty shall be imposed for failure to furnish correct payee statements as required by this part, and that penalty shall be determined in accordance with Section 6722 of the Internal Revenue Code, relating to failure to furnish correct payee statements. (2) Section 6722(c) of the Internal Revenue Code, relating to exception for de minimis failures, is modified to the extent that the references to Sections 6041A(b) and 6041A(e) of the Internal Revenue Code, relating to direct sales of five thousand dollars ($5,000) or more, and statements to be furnished to persons with respect to whom information is required to be furnished, does not apply. (c) A penalty shall be imposed for failure to comply with other information reporting requirements under this part, and that penalty shall be determined in accordance with Section 6723 of the Internal Revenue Code, relating to failure to comply with other information reporting requirements. (d) (1) The provisions of Section 6724 of the Internal Revenue Code, relating to waiver; definitions, and special rules, apply, except as otherwise provided. (2) Section 6724(d)(1) of the Internal Revenue Code, relating to information return, is modified as follows: (A) The following references are substituted: (i) Subdivision (a) of Section 18640, in lieu of Section 6044(a)(1) of the Internal Revenue Code. (ii) Subdivision (a) of Section 18644, in lieu of Section 6050A(a) of the Internal Revenue Code, relating to reports. (B) References to Sections 4101(d), 6041(b), 6041A(b), 6045(d), 6051(d), and 6053(c)(1) of the Internal Revenue Code do not apply. (C) The term “information return” also includes both of the following: (i) The return required by paragraph (1) of subdivision (g) of Section 18662. (ii) The return required by subdivision (a) of Section 18631.7. (3) Section 6724(d)(2) of the Internal Revenue Code, relating to payee statement, is modified as follows: (A) The following references are substituted: (i) Subdivision (b) of Section 18640, in lieu of Section 6044(e) of the Internal Revenue Code, relating to statements to be furnished to persons with respect to whom information is required. (ii) Subdivision (b) of Section 18644, in lieu of Section 6050A(b) of the Internal Revenue Code, relating to written statement. (B) References to Sections 6031(b), 6037(b), 6041A(e), 6045(d), 6051(d), 6053(b), and 6053(c) of the Internal Revenue Code shall not apply. (C) The term “payee statement” shall also include the statement required by paragraph (2) of subdivision (g) of Section 18662. (e) In the case of each failure to provide a written explanation as required by Section 402(f) of the Internal Revenue Code, relating to written explanation to recipients of distributions eligible for rollover treatment, at the time prescribed therefor, unless it is shown that the failure is due to reasonable cause and not to willful neglect, there shall be paid, on notice and demand of the Franchise Tax Board and in the same manner as tax, by the person failing to provide that written explanation, an amount equal to ten dollars ($10) for each failure, but the total amount imposed on that person for all those failures during any calendar year shall not exceed five thousand dollars ($5,000). (f) Any penalty imposed by this part shall be paid on notice and demand by the Franchise Tax Board and in the same manner as tax. (g) The amendments made to this section by Chapter 359 of the Statutes of 2015 apply to information returns required to be filed on or after January 1, 2016. (h) The amendments made to this section by the act adding this subdivision shall apply to information returns required to be filed on or after January 1, 2026. (Amended by Stats. 2025, Ch. 231, Sec. 71. (SB 711) Effective October 1, 2025.)
  102. 19184.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section imposes penalties for late or missing tax-related filings, and for overstating nondeductible contributions, unless reasonable cause is shown.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19184. (a) A penalty of fifty dollars ($50) shall be imposed for each failure, unless it is shown that the failure is due to reasonable cause, by any person required to file who fails to file a report at the time and in the manner required by any of the following provisions: (1) Subdivision (c) of Section 17507, relating to individual retirement accounts. (2) Section 220(h) of the Internal Revenue Code, relating to medical savings accounts for taxable years beginning on or after January 1, 1997. (3) Subdivision (b) of Section 17140.3 or subdivision (b) of Section 23711 relating to qualified tuition programs. (4) Subdivision (e) of Section 23712, relating to Coverdell education savings accounts. (b) (1) Any individual who: (A) Is required to furnish information under Section 17508 as to the amount designated nondeductible contributions made for any taxable year, and (B) Overstates the amount of those contributions made for that taxable year, shall pay a penalty of one hundred dollars ($100) for each overstatement unless it is shown that the overstatement is due to reasonable cause. (2) Any individual who fails to file a form required to be filed by the Franchise Tax Board under Section 17508 shall pay a penalty of fifty dollars ($50) for each failure unless it is shown that the failure is due to reasonable cause. (c) Article 3 (commencing with Section 19031) of this chapter (relating to deficiency assessments) shall not apply in respect of the assessment or collection of any penalty imposed under this section. (Amended by Stats. 2005, Ch. 691, Sec. 48. Effective October 7, 2005.)
  103. 19185.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section makes Internal Revenue Code section 6695A apply to certain appraisals, except where otherwise provided.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19185. (a) Section 6695A of the Internal Revenue Code, relating to substantial and gross valuation misstatements attributable to incorrect appraisals, shall apply, except as otherwise provided. (b) This section shall apply to appraisals with respect to returns or submissions filed on or after January 1, 2011. (Added by Stats. 2010, Ch. 14, Sec. 51. (SB 401) Effective January 1, 2011.)
  104. 19186.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section makes IRC section 6720B apply to fraudulent identification of exempt use property, except where otherwise provided, and it applies only to identifications made after January 1, 2011.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19186. (a) Section 6720B of the Internal Revenue Code, relating to the fraudulent identification of exempt use property, shall apply, except as otherwise provided. (b) This section shall apply to identifications made after January 1, 2011. (Added by Stats. 2010, Ch. 14, Sec. 52. (SB 401) Effective January 1, 2011.)
  105. 19187.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board must include specified penalty information in penalty notices, and it must provide a penalty computation on the taxpayer’s request. A penalty may not be imposed unless the initial determination is personally approved in writing, subject to listed exceptions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Penalties and Additions to Tax [19131 - 19187] ( Article 7 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19187. (a) The Franchise Tax Board shall include with each notice imposing a penalty under this part information that contains the name of the penalty, the section of this part under which the penalty is imposed, and a description of the computation of the penalty. Upon the request of the taxpayer, the Franchise Tax Board shall also provide a computation of the penalty imposed. (b) (1) No penalty under this part shall be imposed unless the initial determination of the imposition of the penalty is personally approved in writing by the immediate supervisor of the individual making that determination or a higher level official as designated by the executive officer, or the officer’s delegee. (2) Paragraph (1) shall not apply to any of the following: (A) Any addition to tax under Sections 19131, 19132, 19136, or 19142. (B) Any addition to tax imposed pursuant to subdivision (b) of Section 19164. (C) Any other penalty automatically calculated through electronic means. (D) Any penalty resulting from a change or correction by the Commissioner of Internal Revenue or other officer of the United States or other competent authority required to be reported under subdivision (a) of Section 18622. (c) For purposes of this section, “penalty” includes any addition to tax or any additional amount. (d) This section shall apply to notices issued and penalties imposed after December 31, 2001. (e) The amendments made to this section by the act adding this subdivision shall apply for additions to tax imposed on or after January 1, 2024. (Amended by Stats. 2024, Ch. 34, Sec. 30. (SB 167) Effective June 27, 2024.)
  106. 19191.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Voluntary Disclosure Program [19191 - 19194] ( Heading of Article 8 amended by Stats. 2017, Ch. 176, Sec. 2. )

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    This section lets the Franchise Tax Board make voluntary disclosure agreements with qualified taxpayers and requires the Board to set up application procedures and act on applications within set time limits.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Voluntary Disclosure Program [19191 - 19194] ( Heading of Article 8 amended by Stats. 2017, Ch. 176, Sec. 2. ) ## 19191. (a) The Franchise Tax Board may enter into a voluntary disclosure agreement with any qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner, as defined in Section 19192, that is binding on both the Franchise Tax Board and the qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner. (b) The Franchise Tax Board shall do all of the following: (1) Provide guidelines and establish procedures for qualified entities and their qualified shareholders, qualified members, qualified beneficiaries, or qualified partners to apply for voluntary disclosure agreements. (2) Accept applications on an anonymous basis from qualified entities and their qualified shareholders, qualified members, qualified beneficiaries, or qualified partners for voluntary disclosure agreements. (3) Implement procedures for accepting applications for voluntary disclosure agreements through the National Nexus Program administered by the Multistate Tax Commission. (4) For purposes of considering offers from qualified entities and their qualified shareholders, qualified members, qualified beneficiaries, or qualified partners to enter into voluntary disclosure agreements, take into account the following criteria: (A) The nature and magnitude of the qualified entity’s previous presence and activity in this state and the facts and circumstances by which the nexus of the qualified entity or qualified shareholder, qualified member, qualified beneficiary, or qualified partner was established. (B) The extent to which the weight of the factual circumstances demonstrates that a prudent business person exercising reasonable care would conclude that the previous activities and presence in this state were or were not immune from taxation by this state by reason of Public Law 86-272 or otherwise. (C) Reasonable reliance on the advice of a person in a fiduciary position or other competent advice that the qualified entity or qualified shareholder, qualified member, qualified beneficiary, or qualified partner activities were immune from taxation by this state. (D) Lack of evidence of willful disregard or neglect of the tax laws of this state on the part of the qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner. (E) Demonstrations of good faith on the part of the qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner. (F) Benefits that will accrue to the state by entering into a voluntary disclosure agreement. (5) Act on any application of a voluntary disclosure agreement within 120 days of receipt. (6) Enter into voluntary disclosure agreements with qualified entities, qualified shareholders, qualified members, qualified beneficiaries, or qualified partners, as authorized in subdivision (a) and based on the criteria set forth in paragraph (4). (c) Before any voluntary disclosure agreement becomes binding, the Franchise Tax Board, itself, shall approve the agreement in the following manner: (1) The Executive Officer and Chief Counsel of the Franchise Tax Board shall recommend and submit the voluntary disclosure agreement to the Franchise Tax Board for approval. (2) Each voluntary disclosure agreement recommendation shall be submitted in a manner as to maintain the anonymity of the taxpayer applying for the voluntary disclosure agreement. (3) A recommendation for approval of a voluntary disclosure agreement shall be approved or disapproved by the Franchise Tax Board, itself, within 45 days of the submission of that recommendation to the board. (4) A recommendation of a voluntary disclosure agreement that is not either approved or disapproved by the board within 45 days of the submission of that recommendation shall be deemed approved. (5) Disapproval of a recommendation of a voluntary disclosure agreement shall be made only by a majority vote of the Franchise Tax Board. (6) The members of the Franchise Tax Board shall not participate in any voluntary disclosure agreement except as provided in this subdivision. (d) The voluntary disclosure agreement entered into by the Franchise Tax Board and the qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner as provided for in subdivision (a) shall to the extent applicable specify that: (1) The Franchise Tax Board shall with respect to a qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner, except as provided in paragraph (4), (6), (9), or (11) of subdivision (a) of Section 19192: (A) (i) Waive its authority under this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23001) to assess or propose to assess taxes, additions to tax, fees, or penalties with respect to each taxable year ending prior to six years from the signing date of the voluntary disclosure agreement. (ii) The waiver of authority to assess or propose to assess taxes, additions to tax, fees, or penalties under clause (i) with respect to the income of a trust for a taxable year ending prior to six years from the signing date of the voluntary disclosure agreement shall not prevent the taxation of income of a beneficiary of a trust pursuant to Section 17745. (B) With respect to each of the six taxable years ending immediately preceding the signing date of the voluntary disclosure agreement, based on its discretion, agree to waive any or all of the following: (i) A penalty related to a failure to make and file a return, as provided in Section 19131. (ii) A penalty related to a failure to pay any amount due by the date prescribed for payment, as provided in Section 19132. (iii) An addition to tax related to an underpayment of estimated tax, as provided in Section 19136. (iv) A penalty related to Section 6810 or subdivision (a) of Section 8810 of the Corporations Code, as provided in Section 19141 of this code. (v) A penalty related to a failure to furnish information or maintain records, as provided in Section 19141.5. (vi) An addition to tax related to an underpayment of tax imposed under Part 11 (commencing with Section 23001), as provided in Section 19142. (vii) A penalty related to a partnership required to file a return under Section 18633 or 18633.5, as provided in Section 19172. (viii) A penalty related to an “S” corporation required to file a return under Section 18601, as provided in Section 19172.5. (ix) A penalty related to a failure to file information returns, as provided in Section 19183. (x) A penalty related to relief from contract voidability, as provided in Section 23305.1. (2) The qualified entity, qualified shareholder, qualified member, qualified beneficiary, or qualified partner shall: (A) With respect to each of the six taxable years ending immediately preceding the signing date of the written agreement: (i) Voluntarily and fully disclose on the qualified entity’s application all material facts pertinent to the qualified entity’s, shareholder’s, member’s, beneficiary’s, or partner’s liability for any taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). (ii) Except as provided in paragraph (3), within 30 days from the signing date of the voluntary disclosure agreement: (I) File all returns required under this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23001). (II) Pay in full any tax, interest, fee, and penalties, other than those penalties specifically waived by the Franchise Tax Board under the terms of the voluntary disclosure agreement, imposed under this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23001) in a manner as may be prescribed by the Franchise Tax Board. Paragraph (1) of subdivision (f) of Section 23153 shall not apply to qualified entities admitted into the voluntary disclosure program. (B) Agree to comply with all franchise and income tax laws of this state in subsequent taxable years by filing all returns required and paying all amounts due under this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23001). (3) The Franchise Tax Board may extend the time for filing returns and paying amounts due to 120 days from the signing date of the voluntary disclosure agreement or to the latest extended due date of the return for a taxable year for which relief is granted, whichever is later. (e) An addition to tax under Section 19136 or 19142 shall not be made for any underpayment of estimated tax attributable to the underpayment of an installment of estimated tax due before the signing date of the voluntary disclosure agreement. (f) The amendments to this section made by Chapter 954 of the Statutes of 1996 shall apply to taxable years beginning on or after January 1, 1997. (g) The amendments to this section made by Chapter 543 of the Statutes of 2001 shall apply to voluntary disclosure agreements entered into on or after January 1, 2002. (h) The amendments to this section made by Chapter 354 of the Statutes of 2004 shall apply to voluntary disclosure agreements entered into on or after January 1, 2005. (i) The amendments to this section made by Chapter 296 of the Statutes of 2011 shall apply to voluntary disclosure agreements entered into on or after January 1, 2011. (j) The amendments to this section made by the act adding this subdivision shall apply to voluntary disclosure agreements entered into on or after January 1, 2018. (Amended by Stats. 2017, Ch. 288, Sec. 1. (SB 813) Effective January 1, 2018.)
  107. 19192.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Voluntary Disclosure Program [19191 - 19194] ( Heading of Article 8 amended by Stats. 2017, Ch. 176, Sec. 2. )

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    This section defines the terms used in the voluntary disclosure program article.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Voluntary Disclosure Program [19191 - 19194] ( Heading of Article 8 amended by Stats. 2017, Ch. 176, Sec. 2. ) ## 19192. For purposes of this article, the following terms have the following meanings: (a) (1) “Qualified entity” means an entity that is all of the following: (A) A corporation, as defined in Section 23038, a limited liability company, as defined in subdivision (d) of Section 17941, a qualified trust, as defined in paragraph (7), or a qualified partnership, as defined in paragraph (12). (B) An entity, including any predecessors to the entity, that previously has never filed a return with the Franchise Tax Board pursuant to this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23011). (C) An entity, including any predecessors to the entity, that previously has not been the subject of an inquiry by the Franchise Tax Board with respect to liability for any of the taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). (D) An entity that voluntarily comes forward prior to any unilateral contact from the Franchise Tax Board, makes application for a voluntary disclosure agreement in a form and manner prescribed by the Franchise Tax Board, and makes a full and accurate statement of its activities in this state for the six immediately preceding taxable years. (2) (A) Notwithstanding paragraph (1), a qualified entity does not include any of the following: (i) An entity that is organized and existing under the laws of this state. (ii) An entity that is qualified or registered with the office of the Secretary of State. (iii) An entity that maintains and staffs a permanent facility in this state. (B) For purposes of this paragraph, the storing of materials, goods, or products in a public warehouse pursuant to a public warehouse contract does not constitute maintaining a permanent facility in this state. (3) “Qualified shareholder” means an individual that is all of the following: (A) A nonresident on the signing date of the voluntary disclosure agreement. (B) A shareholder of an “S” corporation (defined in Section 23800) that has applied for a voluntary disclosure agreement under this article under which all material facts pertinent to the shareholder’s liability would be disclosed on that “S” corporation’s voluntary disclosure agreement as required under clause (i) of subparagraph (A) of paragraph (2) of subdivision (d) of Section 19191. (4) Notwithstanding paragraph (3), subparagraph (B) of paragraph (1) of subdivision (d) of Section 19191 shall not apply to any of the six taxable years immediately preceding the signing date that the qualified shareholder was a California resident required to file a California tax return, nor to any penalties or additions to tax attributable to income other than the California source income from the “S” corporation that filed an application under this article. (5) “Qualified member” means an individual, corporation, or limited liability company that is all of the following: (A) (i) In the case of an individual, is a nonresident on the signing date of the voluntary disclosure agreement. (ii) In the case of a corporation or limited liability company, is not either of the following: (I) Organized under the laws of this state. (II) Qualified or registered with the office of the Secretary of State. (B) A member of a limited liability company that has applied for a voluntary disclosure agreement under this article under which all material facts pertinent to the member’s liability would be disclosed on that limited liability company’s voluntary disclosure agreement as required under clause (i) of subparagraph (A) of paragraph (2) of subdivision (d) of Section 19191. (6) Notwithstanding paragraph (5), in the case of a qualified member who is an individual, subparagraph (B) of paragraph (1) of subdivision (d) of Section 19191 shall not apply to any of the six taxable years immediately preceding the signing date that the qualified member was a California resident required to file a California tax return, nor to any penalties or additions to tax attributable to income other than the California source income from the limited liability company that filed an application under this article. (7) “Qualified trust” means a trust, the administration of which has never been performed in California. For purposes of this paragraph, administrative activities performed in California would be deemed to be performed outside of California if those activities were inconsequential to the overall administration of the trust. (8) “Qualified beneficiary” means an individual who is all of the following: (A) A nonresident on the signing date of the voluntary disclosure agreement and a nonresident during each of the six taxable years ending immediately preceding the signing date of the voluntary disclosure agreement. (B) A beneficiary with a contingent or noncontingent interest in the qualified trust. A beneficiary’s trust interest for a taxable year is not contingent if the trust has made any distribution to that beneficiary. (C) A beneficiary of a qualified trust that has applied for a voluntary disclosure agreement under this article under which all material facts pertinent to the beneficiary’s liability would be disclosed on that trust’s voluntary disclosure agreement as required under clause (i) of subparagraph (A) of paragraph (2) of subdivision (d) of Section 19191. (9) Notwithstanding paragraph (8), subparagraph (B) of paragraph (1) of subdivision (d) of Section 19191 shall not apply to any penalties or additions to tax attributable to income other than income from the trust that filed an application under this article. (10) “Qualified partner” means an individual that is both of the following: (A) A nonresident of this state as of the signing date of the voluntary disclosure agreement. (B) A partner of a qualified partnership that has applied for a voluntary disclosure agreement under this article under which all material facts pertinent to the partner’s liability would be disclosed on the partnership’s voluntary disclosure agreement as required under clause (i) of subparagraph (A) of paragraph (2) of subdivision (d) of Section 19191. (11) Notwithstanding paragraph (10), in the case of a qualified partner, subparagraph (B) of paragraph (1) of subdivision (d) of Section 19191 shall not apply to any of the six taxable years immediately preceding the signing date that the qualified partner was a California resident required to file a California tax return, nor to any penalties or additions to tax attributable to income other than the California source income from the partnership that filed an application under this article. (12) “Qualified partnership” means a partnership, as defined in Section 17008, a limited partnership, as defined in subdivision (d) of Section 17935, or a limited liability partnership, within the meaning of Section 17948. (b) “Signing date” of the voluntary disclosure agreement means the date on which a person duly authorized by the Franchise Tax Board signs the agreement. (c) The amendments to this section made by Chapter 954 of the Statutes of 1996 shall apply to taxable years beginning on or after January 1, 1997. (d) The amendments to this section made by Chapter 543 of the Statutes of 2001 shall apply to voluntary disclosure agreements entered into on or after January 1, 2002. (e) The amendments to this section made by the act adding this subdivision shall apply to voluntary disclosure agreements entered into on or after January 1, 2005. (f) The amendments to this section made by the act adding this subdivision shall apply to voluntary disclosure agreements entered into on or after January 1, 2018. (Amended by Stats. 2017, Ch. 288, Sec. 2. (SB 813) Effective January 1, 2018.)
  108. 19193.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Voluntary Disclosure Program [19191 - 19194] ( Heading of Article 8 amended by Stats. 2017, Ch. 176, Sec. 2. )

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    Signing a voluntary disclosure agreement does not take away the Franchise Tax Board’s power to examine returns and assess additional tax, penalty, or interest.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Voluntary Disclosure Program [19191 - 19194] ( Heading of Article 8 amended by Stats. 2017, Ch. 176, Sec. 2. ) ## 19193. Nothing in this article shall be construed to mean that by accepting and signing a voluntary disclosure agreement the Franchise Tax Board abdicates the right and authority to examine returns and determine the correct amount of tax for any of the taxable years covered by the voluntary disclosure period agreed upon and to assess any additional tax, penalty, or interest owed as a result of that examination. (Amended by Stats. 2000, Ch. 862, Sec. 32. Effective January 1, 2001.)
  109. 19194.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Voluntary Disclosure Program [19191 - 19194] ( Heading of Article 8 amended by Stats. 2017, Ch. 176, Sec. 2. )

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    A voluntary disclosure agreement can become null and void if the qualified entity misses required filings or payments, misstates material facts, underreports tax by 10% or more without a good-faith effort, or fails to start prospective compliance. The Franchise Tax Board may also use an installment payment arrangement with interest.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Voluntary Disclosure Program [19191 - 19194] ( Heading of Article 8 amended by Stats. 2017, Ch. 176, Sec. 2. ) ## 19194. (a) Notwithstanding any other provision of this article, a voluntary disclosure agreement shall be null and void in the event that the Franchise Tax Board finds that with respect to the agreement any of the following circumstances exist: (1) The qualified entity has misrepresented any material fact in applying for the voluntary disclosure agreement or in entering into the agreement. (2) The qualified entity fails to file any returns for any taxable year covered by the voluntary disclosure period agreed upon on or before the due date prescribed under the terms of the agreement in accordance with paragraph (2) of subdivision (d) of Section 19191. (3) (A) The qualified entity fails to pay in full any tax, fee, penalty, or interest due within the time prescribed under the terms of the voluntary disclosure agreement in accordance with paragraph (2) of subdivision (d) of Section 19191 or to pay any installments thereof due within the time prescribed under the terms of an installment payment arrangement in accordance with subparagraph (B). (B) The Franchise Tax Board may enter into an installment payment arrangement, which shall include provisions for interest, in lieu of the full payment required under paragraph (2) of subdivision (d) of Section 19191. Failure by the qualified entity to comply with the terms of the installment payment arrangement shall also render the voluntary disclosure agreement null and void. (C) Notwithstanding subparagraphs (A) and (B), an applicant applying for an installment payment arrangement shall have the same time periods as identified in paragraphs (1) and (2) of subdivision (d) of Section 19008 to pay in full any tax, fee, penalty, or interest due. (4) The tax shown by the qualified entity on its tax return filed for any taxable year covered by the voluntary disclosure agreement, including any amount shown on a qualified amended return, as defined in Section 1.6664-2(c)(3) of Title 26 of the Code of Federal Regulations, understates by 10 percent or more the tax imposed under either Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) and the qualified entity cannot demonstrate to the satisfaction of the Franchise Tax Board that a good faith effort was made to accurately compute the tax. (5) The qualified entity fails to begin to prospectively comply with all franchise and income tax laws of this state as agreed upon under the terms of the voluntary disclosure agreement in accordance with paragraph (2) of subdivision (d) of Section 19191. (b) In the event that the Franchise Tax Board finds that the qualified entity has failed to comply under any of the circumstances which render the voluntary disclosure agreement null and void as set forth in subdivision (a), the limitation on assessment for any taxable years and the waiver of any penalties as provided for in paragraph (1) of subdivision (d) and subdivision (h) of Section 19191 shall not be binding on the Franchise Tax Board. (c) The amendments to this section made by the act adding this subdivision shall apply to voluntary disclosure agreements entered into on or after January 1, 2011. (Amended by Stats. 2011, Ch. 296, Sec. 280. (AB 1023) Effective January 1, 2012.)
  110. 19195.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 9. Public Disclosure of Tax Delinquencies [19195- 19195.] ( Article 9 added by Stats. 2006, Ch. 716, Sec. 2. )

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    The Franchise Tax Board must publish, update, and manage a public list of the 500 largest tax delinquencies over $100,000, with notice and removal rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 4. Payments and Assessments [19001 - 19195] ( Chapter 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 9. Public Disclosure of Tax Delinquencies [19195- 19195.] ( Article 9 added by Stats. 2006, Ch. 716, Sec. 2. ) ## 19195. (a) Notwithstanding any other provision of law, including Section 7920.500 and Article 3 (commencing with Section 7928.200) of Chapter 14 of Part 5 of Division 10 of Title 1 of the Government Code, the Franchise Tax Board shall make available as a matter of public record at least twice each calendar year a list of the 500 largest tax delinquencies in excess of one hundred thousand dollars ($100,000) under Part 10 and Part 11 of this division. For purposes of compiling the list, a tax delinquency means the total amount owed by a taxpayer to the State of California for which a notice of state tax lien has been recorded in any county recorder’s office in this state, pursuant to Chapter 14 (commencing with Section 7150) of Division 7 of Title 1 of the Government Code. (b) For purposes of the list, a tax delinquency does not include any of the following and may not be included on the list: (1) A delinquency for which payment arrangements have been agreed to by both the taxpayer and the Franchise Tax Board and the taxpayer is in compliance with the arrangement. (2) A delinquency for which the taxpayer has filed for bankruptcy protection pursuant to Title 11 of the United States Code. (3) A delinquency for which the person or persons liable for the tax have contacted the Franchise Tax Board and for which resolution of the tax delinquency has been accepted by the Franchise Tax Board. (c) Each list shall, with respect to each delinquency, include all the following: (1) The name of the person or persons liable for payment of the tax and that person’s or persons’ address. (2) The amount of tax delinquency as shown on the notice or notices of state tax lien and any applicable interest or penalties, less any amounts paid. (3) The earliest date that a notice of state tax lien was filed. (4) The type of tax that is delinquent. (5) The type, status, and license number of any occupational or professional license held by the person or persons liable for payment of the tax. (6) The names and titles of the principal officers of the person liable for payment of the tax if that person is a limited liability company or corporation. The Franchise Tax Board shall refer to the limited liability company’s or the corporation’s Statement of Information filed with the Secretary of State or to the limited liability company’s or the corporation’s tax return filed pursuant to this part to determine the principal officers of the limited liability company or corporation. Principal officers appearing on a list solely pursuant to this paragraph shall not be subject to Section 494.5 of the Business and Professions Code, or Section 10295.4 of the Public Contract Code. (d) Prior to making a tax delinquency a matter of public record as required by this section, the Franchise Tax Board shall provide a preliminary written notice to the person or persons liable for the tax by certified mail, return receipt requested. If within 30 days after issuance of the notice, the person or persons do not remit the amount due or make arrangements with the Franchise Tax Board for payment of the amount due, the tax delinquency shall be included on the list. (e) The list described in subdivision (a) shall include the following: (1) The telephone number and address of the Franchise Tax Board office to contact if a person believes placement of the person’s name on the list is in error. (2) The aggregate number of persons that have appeared on the list who have satisfied their delinquencies in their entirety and the dollar amounts, in the aggregate, that have been paid attributable to those delinquencies. (f) As promptly as feasible, but no later than five business days from the occurrence of any of the following, the Franchise Tax Board shall remove that taxpayer’s name from the list of tax delinquencies: (1) Tax delinquencies for which the person liable for the tax has contacted the Franchise Tax Board and resolution of the delinquency has been arranged. (2) Tax delinquencies for which the Franchise Tax Board has verified that an active bankruptcy proceeding has been initiated. (3) Tax delinquencies for which the Franchise Tax Board has verified that a bankruptcy proceeding has been completed and there are no assets available with which to pay the delinquent amount or amounts. (4) Tax delinquencies that the Franchise Tax Board has determined to be uncollectible. (g) A person whose delinquency appears on the list, and who satisfies that delinquency in whole or in part, may request the Franchise Tax Board to include in its list any payments that person made to satisfy the delinquency. Upon receipt of that request, the Franchise Tax Board shall include those payments on the list as promptly as feasible. (h) Notwithstanding subdivision (a), a person whose delinquency appeared on the list and whose name has been removed pursuant to paragraph (1) of subdivision (f) shall comply with the terms of the arranged resolution. If the person fails to do so, the Franchise Tax Board may add that person’s name to the list of delinquencies without providing the prior written notice otherwise required by subdivision (d). (Amended by Stats. 2021, Ch. 615, Sec. 418. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
  111. 19201.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If certain tax-related amounts are unpaid, the Franchise Tax Board may file a certificate with a county clerk and ask for judgment against the taxpayer.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19201. If any amount due under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or any amount that may be collected by the Franchise Tax Board as though it were a tax, is not paid, the Franchise Tax Board may file in the Office of the Clerk of the Court of Sacramento County, or any other county, a certificate specifying the amount due, the name and last known address of the taxpayer liable for the amount due, and the fact that the Franchise Tax Board has complied with all provisions of the law in the computation and levy of the amount due, and a request that judgment be entered against the taxpayer in the amount set forth in the certificate. (Amended by Stats. 2016, Ch. 366, Sec. 24. (SB 974) Effective January 1, 2017.)
  112. 19202.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    When a certificate is filed, the court clerk must immediately enter judgment against the taxpayer for the amount stated in the certificate.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19202. The clerk of the court immediately upon the filing of the certificate shall enter a judgment for the people of the State of California against the taxpayer in the amount set forth in the certificate. The clerk of the court may file the judgment in a loose-leaf book entitled “Personal Income Tax Judgments” or “Bank and Corporation Tax Judgments,” as appropriate. (Amended by Stats. 2016, Ch. 366, Sec. 25. (SB 974) Effective January 1, 2017.)
  113. 19203.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    An abstract or copy of the judgment may be recorded with any county recorder, and recording creates a lien on the taxpayer’s real property in that county.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19203. An abstract or a copy of the judgment may be recorded with the county recorder of any county. From the time of the recording, the amount set forth constitutes a lien upon all real property of the taxpayer in the county, owned by the taxpayer or afterward and before the lien expires acquired by the taxpayer. Such lien has the force, effect, and priority of a judgment lien and continues for 10 years from the date of the recording unless sooner released or otherwise discharged. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  114. 19204.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A tax lien may be extended by recording an abstract or copy of the judgment with the county recorder within the stated 10-year window.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19204. Within 10 years from the date of the recording or within 10 years from the date of the last extension of the lien in the manner provided in this section, the lien may be extended by recording in the office of the county recorder of any county an abstract or copy of the judgment. From the time of the recording the lien extends to the property in the county for 10 years unless sooner released or otherwise discharged. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  115. 19205.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Execution on a tax judgment must be issued when the Franchise Tax Board requests it, and the execution process follows the same rules as other judgments and the Code of Civil Procedure for sales.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19205. Execution shall issue upon the judgment upon request of the Franchise Tax Board in the same manner as execution may issue upon other judgments, and sales shall be held under the execution as prescribed in the Code of Civil Procedure. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  116. 19206.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The Franchise Tax Board may release or subordinate a tax lien on a taxpayer’s property if tax collection remains sufficiently secured.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19206. The Franchise Tax Board may, at any time, release all or any portion of the property subject to any lien provided for in this article from the lien or subordinate the lien to other liens if it determines that the taxes are sufficiently secured by a lien on other property of the taxpayer or that the release or subordination of the lien will not endanger or jeopardize the collection of the taxes. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  117. 19207.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The Franchise Tax Board may release a lien under Sections 19203 or 19204 if it finds the related liability, including accrued interest, is legally unenforceable.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19207. The Franchise Tax Board may release any lien imposed under Section 19203 or 19204 if it finds that the liability represented by the lien, including any interest accrued thereon, is legally unenforceable. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  118. 19208.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A Franchise Tax Board certificate stating that property was released from a lien or that a lien was subordinated is conclusive evidence of that fact.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19208. A certificate by the Franchise Tax Board to the effect that any property has been released from a lien or that the lien has been subordinated to other liens is conclusive evidence that the property has been released or that the lien has been subordinated as provided in the certificate. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  119. 19209.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If the Franchise Tax Board records a certificate of release under Section 19206 or 19207, the taxpayer must pay the recording cost, and the Board may collect that cost as it collects the tax.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Judgment for Tax [19201 - 19209] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19209. If the Franchise Tax Board records a certificate of release pursuant to Section 19206 or 19207, the cost of recording is an obligation of the taxpayer and may be collected from the taxpayer in any manner provided in this part for the collection of the tax. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  120. 19221.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If a taxpayer or other person does not pay certain state tax liabilities when due, the amount becomes a perfected and enforceable state tax lien.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19221. (a) If any taxpayer or person fails to pay any liability imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) at the time that it becomes due and payable, the amount thereof, (including any interest, additional amount, addition to tax, or penalty, together with any costs that may accrue in addition thereto) shall thereupon be a perfected and enforceable state tax lien. This lien is subject to Chapter 14 (commencing with Section 7150) of Division 7 of Title 1 of the Government Code. (b) For the purpose of this section, amounts are “due and payable” on the following dates: (1) For amounts of any liability disclosed on a return filed on or before the date payment is due (with regard to any extension of time to pay), the date the amount is established on the records of the Franchise Tax Board, except that in no case will it be prior to the day after the payment due date; (2) For amounts of any liability disclosed on a return filed after the date payment is due (with regard to any extension of time to pay), the date the amount is established on the records of the Franchise Tax Board; (3) For amounts of any liability determined under Section 19081 or 19082 (pertaining to jeopardy assessments), the date the notice of the Franchise Tax Board’s finding is mailed or issued; (4) For all other amounts of liability, the date the assessment is final. (c) Notwithstanding subdivision (a), during any period that Section 362 of Title 11 of the United States Code applies, any tax lien that would otherwise attach to property by reason of subdivision (a) shall not take effect, unless the tax is a debt of the debtor that will not be discharged in the bankruptcy proceeding and the property or its proceeds are transferred out of the bankruptcy estate to, or otherwise revested in, the debtor. (Amended by Stats. 1995, Ch. 69, Sec. 1. Effective January 1, 1996.)
  121. 19222.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If certain payment instruments used to pay tax liabilities are not paid, the state gets a perfected and enforceable tax lien on the relevant bank or issuer assets.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19222. For the purposes of this section, if any certified, treasurer's, or cashier’s check (or other guaranteed draft), or any money order received in payment of any liability imposed under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part is not duly paid, the state shall, in addition to its right to exact payment from the party originally indebted therefor, have a perfected and enforceable state tax lien for the amount of that check (or draft) upon all the assets of the financial institution on which drawn or for the amount of that money order upon all the assets of the issuer thereof. The lien referred to in the preceding sentence shall be subject to Chapter 14 (commencing with Section 7150) of Division 7 of Title 1 of the Government Code. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  122. 19223.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    When the Franchise Tax Board records or files a state tax lien notice and gives the required notice to the trust fiduciary, the tax amount becomes a lien on the trust’s real and personal property in the county.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19223. Upon recordation or filing of a notice of state tax lien pursuant to Section 7171 of the Government Code by the Franchise Tax Board for any taxes due from the grantor of a trust on income of the trust which is taxable to the grantor under Part 10 (commencing with Section 17001), and upon its giving notice of the recording or filing pursuant to Section 7171 of the Government Code to the fiduciary of the trust, or in case there is more than one fiduciary to any one of the fiduciaries, the amount of the taxes constitutes a lien upon all the real or personal property of the trust in the county owned by the trust or afterwards and before the lien expires acquired by the trust. The lien has the force, effect, and priority of a lien created pursuant to Section 19221. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  123. 19224.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A notice under Section 19223 may be served on the fiduciary personally or by mail.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19224. The notice required to be given by Section 19223 may be served upon the fiduciary personally, or by mail; if by mail, service shall be made pursuant to Section 1013 of the Code of Civil Procedure and shall be addressed to the fiduciary at his or her address as it appears in the records of the Franchise Tax Board. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  124. 19225.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The Franchise Tax Board must give written notice of a state tax lien filing, and the notice must include key tax and review information. The taxpayer gets a limited right to one review for the taxable period, and the review process has independence requirements.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19225. (a) (1) The Franchise Tax Board shall notify in writing the person described in Section 19221 of the filing or recording of a notice of state tax lien as provided under Chapter 14 (commencing with Section 7150) or Chapter 14.5 (commencing with Section 7220) of Division 7 of Title 1 of the Government Code. (2) The notice required under paragraph (1) shall be mailed in accordance with Section 2885 of the Civil Code no less than five business days after the day of the filing of the notice of lien. (3) The notice shall specify, in simple and nontechnical terms, all of the following: (A) The amount of unpaid tax. (B) The right of the person to request a review during the 15-day period beginning on the day after the five-day period described in paragraph (2). (C) The independent departmental administrative review available to the taxpayer with respect to the lien and the procedures to obtain that review. (D) The procedures relating to the release of liens on property. (b) (1) The Taxpayers’ Rights Advocate shall establish procedures for an independent departmental administrative review requested under subparagraph (C) of paragraph (3) of subdivision (a). (2) A person shall be entitled to only one review under this section with respect to the taxable period to which the unpaid tax specified in subparagraph (A) of paragraph (3) of subdivision (a) relates. (3) An independent departmental administrative review under this subdivision shall be conducted by an officer or employee, or officers or employees, who have had no prior involvement with respect to the unpaid tax specified in subparagraph (A) of paragraph (3) of subdivision (a) before the first review under this section or Section 21015.5. A taxpayer may waive the requirement of this paragraph. Administrative review under this paragraph is not subject to Chapter 4.5 (commencing with Section 11400) of Part 1 of Division 3 of the Government Code. (4) To the extent practicable, a review under this section shall be held in conjunction with a review under Section 21015.5. (c) For purposes of this section, subdivision (c) of Section 21015.5 shall apply. (d) This section is operative for any collection action initiated after the date which is 180 days after the effective date of the act adding this section. (Added by Stats. 1999, Ch. 348, Sec. 1. Effective January 1, 2000. Applicable as provided in subd. (d).)
  125. 19226.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    This section lets an eligible owner ask the Franchise Tax Board to release a lien on property if the owner is not the person who owes the liability and provides a deposit or acceptable bond.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 2. Lien of Tax [19221 - 19226] ( Article 2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19226. (a) At the request of the owner whose property is subject to any lien under Section 19221, the Franchise Tax Board shall issue a release of lien from that property if the owner is not the person whose unsatisfied liability gave rise to the lien and the owner does either of the following: (1) Deposits with the Franchise Tax Board an amount of money equal to the value of the interest of the state (as determined by the Franchise Tax Board) in the property. (2) Furnishes a bond acceptable to the Franchise Tax Board in a like amount. (b) The Franchise Tax Board shall refund the amount so deposited, pay interest at the overpayment rate under Section 19521, and release the bond, to the extent the Franchise Tax Board determines that either of the following apply: (1) The unsatisfied liability giving rise to the lien can be satisfied from a source other than the property for which the deposit or bond is made. (2) The value of the interest of the state in the property is less than the Franchise Tax Board’s prior determination of the value. (c) If no request is made under subdivision (d), within the period prescribed, the Franchise Tax Board shall do both of the following within 60 days after the expiration of the period: (1) Apply the amount deposited or collected on the bond, to the extent necessary to satisfy the unsatisfied liability secured by the lien. (2) Refund (with interest at the overpayment rate under Section 19521) any portion of the amount deposited which is not used to satisfy the liability. (d) If a release is issued pursuant to this section, the owner may, within 60 days after the day on which the release is issued, request the Franchise Tax Board as provided under subdivision (f) to determine whether the value of the interest of the state (if any) is less than the Franchise Tax Board’s prior determination of the value. No other action may be brought by the owner for a determination. (e) This section shall not limit the circumstances in which the Franchise Tax Board may release a lien under any circumstances to facilitate the collection of the tax liability or, if that release is in the best interest of the taxpayer and the state, take any action associated with the release of that lien it deems appropriate. (f) The Taxpayers’ Rights Advocate shall establish procedures for an independent departmental administrative review for requests made under subdivision (d). This administrative review shall not be subject to Chapter 4.5 (commencing with Section 11400) of Part 1 of Division 3 of the Government Code. If the administrative review determines that the Franchise Tax Board’s previous determination of the value of the interest of the state in the property for purposes of this section exceeds the actual value of the state’s interest, the board shall provide a refund of the amount deposited and a release of the bond, to the extent that the aggregate of the amounts thereof exceeds the value so determined. In the case of a refund issued pursuant to this subdivision, interest shall be allowed at the rate prescribed for overpayments from the date the Franchise Tax Board receives the amount to the date of refund. (g) This section shall be operative on the effective date of the act adding this section. (Added by Stats. 1999, Ch. 931, Sec. 21. Effective October 10, 1999.)
  126. 19231.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board or its authorized representative may issue a warrant to collect tax, interest, or penalties and to enforce a lien.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19231. The Franchise Tax Board or its authorized representative may issue a warrant for the collection of any tax, interest, or penalty and for the enforcement of any lien. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  127. 19232.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A tax collection warrant must be directed to a sheriff, marshal, or the California Highway Patrol, and it is treated like a writ of execution.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19232. The warrant shall be directed to any sheriff, marshal, or the Department of the California Highway Patrol and shall have the same force and effect as a writ of execution. The warrant shall be levied and sale made pursuant to it in the same manner and with the same force and effect as a levy of and sale pursuant to a writ of execution. (Amended by Stats. 1998, Ch. 931, Sec. 448. Effective September 28, 1998.)
  128. 19233.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board must pay or advance certain fees, commissions, and expenses to specified law enforcement officials, and it—not the court—must approve newspaper publication fees.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19233. The Franchise Tax Board shall pay or advance to the sheriff, marshal, or the Department of the California Highway Patrol the same fees, commissions, and expenses as are provided by law for similar services pursuant to a writ of execution. The Franchise Tax Board, and not the court, shall approve the fees for publication in a newspaper. (Amended by Stats. 1998, Ch. 931, Sec. 449. Effective September 28, 1998.)
  129. 19234.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The taxpayer must bear the fees, commissions, and expenses described here.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19234. The fees, commissions, and expenses are an obligation of the taxpayer and may be collected from the taxpayer by virtue of the warrant or in any other manner provided in this part for the collection of a tax. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  130. 19235.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If property is sold after being levied on by warrant, the taxpayer must bear the reasonable sale costs, including appraisers’, auctioneers’, and advertising fees.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19235. Whenever property is levied upon by warrant pursuant to Section 19231, the reasonable costs associated with the sale of that property, including, but not limited to, appraisers’ fees, auctioneers’ fees, and advertising fees are an obligation of the taxpayer and may be collected from the taxpayer by virtue of the warrant or in any other manner provided in this part for the collection of tax. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  131. 19236.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section limits when tax levies and sales of property may happen, including special rules for residences and certain business property.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 3. Warrant for Collection of Tax [19231 - 19236] ( Article 3 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19236. For purposes of issuing a warrant pursuant to this article: (a) (1) No levy may be issued on any property or right to property to be sold in accordance with the Code of Civil Procedure until a thorough investigation of the status of the property has been completed by the Franchise Tax Board. (2) For purposes of paragraph (1), an investigation of the status of any property shall include all of the following: (A) A verification of the taxpayer’s liability. (B) The completion of an analysis to determine whether the expense of the sale process to the state exceeds the liability for which the levy would be issued. (C) The determination that the equity in the property is sufficient to yield net proceeds from the sale of the property to apply to the liability. (D) A thorough consideration of alternative collection methods. (b) If the amount of the levy does not exceed five thousand dollars ($5,000), no levy may be issued on either of the following: (1) Any real property used as a residence by the taxpayer. (2) Any real property of the taxpayer (other than real property which is rented) used by any other individual as a residence. (c) Notwithstanding the investigation required under subdivision (a): (1) The principal residence of the taxpayer may not be sold except in accordance with Article 4 (commencing with Section 704.710) of Chapter 4 of Division 2 of Title 9 of the Code of Civil Procedure, which requires a court order for sale. (2) Tangible personal property or real property (other than real property which is rented or a principal residence) used in the trade or business of an individual taxpayer may not be levied unless: (A) The levy is approved in writing by the assistant executive officer for collection (or delegate), or (B) The Franchise Tax Board finds that collection of tax is in jeopardy. The officer, or delegate, may not approve a levy under subparagraph (A) unless the officer determines that the taxpayer’s other assets subject to collection are insufficient to pay the amount due, together with expenses of the proceedings. (d) This section shall be operative for any warrant issued on or after the effective date of the act adding this section. (Amended by Stats. 2000, Ch. 647, Sec. 17. Effective January 1, 2001.)
  132. 19251.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    State tax remedies under this chapter are cumulative, and Franchise Tax Board action does not waive other available remedies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19251. The remedies of the state provided for in this chapter are cumulative, and no action taken by the Franchise Tax Board constitutes an election by the state to pursue any remedy to the exclusion of any other remedy for which provision is made in this part. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  133. 19252.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board may act on behalf of the people of California in proceedings under this chapter.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19252. In all proceedings under this chapter the Franchise Tax Board may act on behalf of the people of the State of California. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  134. 19253.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    In certain insolvency and estate situations, amounts owed under this part, plus interest and penalties, must be satisfied first, subject to exceptions for prior liens or security interests and personal-services claims.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19253. The amounts required to be paid by any person under this part together with interest and penalties shall be satisfied first in any of the following cases: (a) Whenever the person is insolvent. (b) Whenever the person makes a voluntary assignment of assets. (c) Whenever the estate of the person in the hands of executors, administrators, or heirs is insufficient to pay all the debts due from the deceased. (d) Whenever the estate and effects of an absconding, concealed, or absent person required to pay any amount under this part are levied upon by process of law. This section does not give the state a preference over any lien or security interest which was recorded or perfected prior to the time when the state records or files its lien as provided in Section 7171 of the Government Code. The preference given to the state by this section shall be subordinate to the preferences given to claims for personal services by Sections 1204 and 1206 of the Code of Civil Procedure. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  135. 19254.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    This section lets the Franchise Tax Board impose a cost recovery fee when certain taxpayers do not pay delinquent liabilities after notice, or do not file required returns after formal demand.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19254. (a) (1) If any person, other than an organization exempt from taxation under Section 23701, fails to pay any amount of tax, penalty, addition to tax, interest, or other liability imposed and delinquent under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), Part 32 (commencing with Section 61000), Title 25 (commencing with Section 100800) of the Government Code, or this part, a collection cost recovery fee shall be imposed if the Franchise Tax Board has mailed notice to that person for payment that advises that continued failure to pay the amount due may result in collection action, including the imposition of a collection cost recovery fee. The collection cost recovery fee shall be in the amount of: (A) In the case of an individual, partnership, limited liability company classified as a partnership for California income tax purposes, or fiduciary, eighty-eight dollars ($88) or an amount as adjusted under subdivision (b). (B) In the case of a corporation or limited liability company classified as a corporation for California income tax purposes, one hundred sixty-six dollars ($166) or an amount as adjusted under subdivision (b). (2) If any person, other than an organization exempt from taxation under Section 23701, fails or refuses to make and file a tax return required by Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part, within 25 days after formal legal demand to file the tax return is mailed to that person by the Franchise Tax Board, the Franchise Tax Board shall impose a filing enforcement cost recovery fee in the amount of: (A) In the case of an individual, partnership, limited liability company classified as a partnership for California income tax purposes, or fiduciary, fifty-one dollars ($51) or an amount as adjusted under subdivision (b). (B) In the case of a corporation or limited liability company classified as a corporation for California income tax purposes, one hundred nineteen dollars ($119) or an amount as adjusted under subdivision (b). (b) For fees imposed under this section during the fiscal year 1993–94 and fiscal years thereafter, the amount of those fees shall be set to reflect actual costs and shall be specified in the annual Budget Act. (c) Interest shall not accrue with respect to the cost recovery fees provided by this section. (d) The amounts provided by this section are obligations imposed by this part and may be collected in any manner provided under this part for the collection of a tax. (e) Subdivision (a) is operative with respect to the notices for payment or formal legal demands to file, either of which is mailed on or after September 15, 1992. (f) The Franchise Tax Board shall determine the total amount of the cost recovery fees collected or accrued through June 30, 1993, and shall notify the Controller of that amount. The Controller shall transfer that amount to the Franchise Tax Board, and that amount is hereby appropriated to the board for the 1992–93 fiscal year for reimbursement of its collection and filing enforcement efforts. (Amended by Stats. 2019, Ch. 38, Sec. 37. (SB 78) Effective June 27, 2019.)
  136. 19255.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board generally cannot collect a tax liability after 20 years, and any collection actions must be ended, with some exceptions and suspension periods.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19255. (a) Except as otherwise provided in subdivisions (b) and (e), after 20 years have lapsed from the date the latest tax liability for a taxable year or the date any other liability that is not associated with a taxable year becomes “due and payable” within the meaning of Section 19221, the Franchise Tax Board may not collect that amount and the taxpayer’s liability to the state for that liability is abated by reason of lapse of time. Any actions taken by the Franchise Tax Board to collect an uncollectible liability shall be released, withdrawn, or otherwise terminated by the Franchise Tax Board, and no subsequent administrative or civil action shall be taken or brought to collect all or part of that uncollectible amount. Any amounts received in contravention of this section shall be considered an overpayment that may be credited and refunded in accordance with Article 1 (commencing with Section 19301) of Chapter 6. (b) If a timely civil action filed pursuant to Article 2 of Chapter 6 of this part is commenced, or a claim is filed in a probate action, the period for which the liability is collectable shall be extended and shall not expire until that liability, probate claim, or judgment against the taxpayer arising from that liability is satisfied or becomes unenforceable under the laws applicable to the enforcement of civil judgments. (c) For purposes of this section, both of the following apply: (1) “Tax liability” means a liability imposed under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part, and includes any additions to tax, interest, penalties, fees and any other amounts relating to the imposed liability. (2) If more than one liability is “due and payable” for a particular taxable year, with the exception of a liability resulting from a penalty imposed under Section 19777.5, the “due and payable” date that is later in time shall be the date upon which the 20-year limitation of subdivision (a) commences. (d) This section does not apply to amounts subject to collection by the Franchise Tax Board pursuant to Article 5.5 or 7 of this chapter, or any other amount that is not a tax imposed under Part 10 or Part 11, but which the Franchise Tax Board is collecting as though it were a final personal income tax delinquency. (e) (1) The expiration of the period of limitation on collection under this section shall be suspended for the following periods: (A) The period during which the Franchise Tax Board is prohibited by reason of a bankruptcy case from collecting, plus six months thereafter. (B) The period described under subdivision (d) of Section 19008 relating to installment payment agreements. (C) The period during which collection is postponed by operation of law under Section 18571, related to postponement by reason of service in a combat zone, or under Section 18572, related to postponement by reason of presidentially declared disaster or terroristic or military action. (D) During any other period during which collection of a tax is suspended, postponed, or extended by operation of law. (2) A suspension of the period of limitation under this subdivision applies with respect to both parties of any liability that is joint and several. (f) This section shall be applied on and after July 1, 2006, to any liability “due and payable” before, on, or after that date. (Amended by Stats. 2016, Ch. 86, Sec. 286. (SB 1171) Effective January 1, 2017.)
  137. 19256.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board may ignore fractional dollar amounts when handling certain tax credits, refunds, deficiencies, or underpayments, but must round them up to $1 if the fraction is $0.50 or more.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19256. The Franchise Tax Board may, in the allowance of any amount as a credit or refund, or in the collection of any amount as a deficiency or underpayment, of any tax imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001), disregard a fractional part of a dollar unless it amounts to fifty cents ($0.50) or more, in which case it shall be increased to one dollar ($1). (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  138. 19262.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board may collect delinquent tax by seizing a taxpayer’s personal property and selling it at public auction, with notice requirements before the sale.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19262. (a) At any time within which an action can be brought to collect any delinquent amounts as provided in Article 2 (commencing with Section 19371) of Chapter 6, the Franchise Tax Board may collect the tax, together with penalties and interest, in the following manner: The Franchise Tax Board shall seize any personal property owned by the taxpayer against whom the tax is assessed, and thereafter sell at public auction the property so seized, or a sufficient portion thereof, to pay the tax due hereunder, together with any interest, and any penalty or penalties imposed hereby for that delinquency, and any and all costs that may have been incurred on account of the seizure and sale. Notice of the intended sale and the time and place thereof, shall be given to the delinquent taxpayer and to all persons appearing of record to have an interest in the property, in writing, at least 10 days before the date set for the sale by enclosing the notice in an envelope addressed to the taxpayer at its last known place of business in this state if any, and, in the case of any person appearing of record to have an interest in the property, addressed to that person at the last known place of residence, if any, and depositing the same in the United States mail, postage prepaid, and by publication for at least 10 days before the date set for the sale in a newspaper of general circulation published in the county in which the property seized is to be sold; provided, however, that if there be no newspaper of general circulation in that county then by the posting of the notice in three public places in the county for the 10-day period. The notice shall contain a description of the property to be sold, together with a statement of the amount of the taxes, interest, penalties, and costs, the name of the taxpayer, and the further statement that, unless the taxes, interest, penalties, and costs are paid on or before the time fixed in the notice for the sale, the property, or so much thereof as may be necessary, will be sold in accordance with law and the notice. (b) For purposes of this section, the term tax shall include any liability imposed pursuant to Article 7 (commencing with Section 19131) of Chapter 4, and any interest imposed thereon. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  139. 19263.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    When property is sold under Section 19262, the Franchise Tax Board must conduct the sale, give the purchaser a bill of sale, and handle any excess proceeds under the section’s rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19263. At any sale authorized by Section 19262, the property shall be sold by the Franchise Tax Board or its duly authorized agent in accordance with law and the notice of sale, and the Franchise Tax Board shall deliver to the purchaser a bill of sale for the property so sold and the bill of sale shall vest title in the purchaser. The unsold portion of any property so seized may be left at the place of sale at the risk of the taxpayer. If, upon any sale, the moneys so received exceed the amount of all taxes, interest, penalties and costs due the state from the taxpayer, any excess shall be returned to the taxpayer and a receipt therefor obtained. However, if any person having an interest in or lien upon the property has filed with the Franchise Tax Board prior to any sale notice of the interest or lien, the Franchise Tax Board shall withhold any excess pending a determination of the rights of the respective parties thereto by a court of competent jurisdiction. If, for any reason, the receipt of the taxpayer is not available, the Franchise Tax Board shall deposit the excess moneys with the Treasurer, as trustee for the owner, subject to the order of the taxpayer or his or her trust or estate, or in the case of a corporation, its successor through reorganization, merger, or consolidation, or its stockholders upon dissolution. (Amended by Stats. 1997, Ch. 605, Sec. 31. Effective January 1, 1998.)
  140. 19264.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board may use electronic transmission or other electronic technology to serve certain earnings withholding orders and related notices or documents to government and private employers, and may receive an employer’s return electronically.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19264. (a) Notwithstanding Sections 706.071, 706.073, 706.080, 706.101, and 706.105 of the Code of Civil Procedure, the Franchise Tax Board may serve earnings withholding orders for taxes and any other notice or document required to be served or provided in connection with an earnings withholding order for taxes pursuant to Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure to government and private employers by electronic transmission or other electronic technology. (b) Upon consent of the employer, the Franchise Tax Board may provide service by electronic transmission or other electronic technology under this section. (c) Notwithstanding Sections 706.071, 706.073, 706.080, 706.101, 706.125, and 706.126 of the Code of Civil Procedure, the Franchise Tax Board may receive the “employer’s return,” as described in Section 706.126 of the Code of Civil Procedure, by electronic transmission or other electronic technology. (d) This section shall apply in the same manner and with the same force and effect and to the full extent as if this section had been incorporated in full into Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure. (e) This section shall apply to notices served or provided on or after the effective date of the act adding this section. (Repealed and added by Stats. 2020, Ch. 297, Sec. 3. (AB 3372) Effective January 1, 2021.)
  141. 19265.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Certain authorized welfare payments are exempt from withholding or levy for specified tax liabilities, and the section is repealed on January 1, 2027.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19265.5. (a) Notwithstanding Section 18670 or 18671, payments authorized pursuant to Section 8161 of the Welfare and Institutions Code shall not be subject to withholding or levy for liabilities due under Section 10878, Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part. (b) This section shall remain in effect only until January 1, 2027, and as of that date is repealed. (Added by Stats. 2022, Ch. 51, Sec. 3. (AB 192) Effective June 30, 2022. Repealed as of January 1, 2027, by its own provisions.)
  142. 19266.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board must run a financial institution record-match system and financial institutions covered by the section must share debtor information, while keeping certain information confidential.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 4. Miscellaneous Provisions [19251 - 19266] ( Article 4 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19266. (a) (1) The Franchise Tax Board, in coordination with financial institutions doing business in this state, shall operate a Financial Institution Record Match System utilizing automated data exchanges to the maximum extent feasible. (2) The Franchise Tax Board shall prescribe any rules and regulations that may be necessary or appropriate to implement this section. These rules and regulations shall include all of the following: (A) A structure by which financial institutions, or their designated data-processing agents, shall receive from the Franchise Tax Board the file or files of delinquent debtors that the institution shall match with its own list of accountholders to identify delinquent tax debtor accountholders at the institution. (B) An option by which financial institutions without the technical ability to process the data exchange, or without the ability to employ a third-party data processor to process the data exchange, may forward to the Franchise Tax Board a list of all accountholders and their social security numbers or other taxpayer identification numbers, so that the Franchise Tax Board shall match that list with the file or files of delinquent tax debtors. (C) Authority for the Franchise Tax Board to exempt a financial institution from the requirements of this section if the Franchise Tax Board determines that the financial institution participation would not generate sufficient revenue to be cost effective for the Franchise Tax Board. (D) Authority for the Franchise Tax Board to temporarily suspend the requirements of this section for a financial institution if the financial institution provides the Franchise Tax Board with a written notice from its supervisory banking authority that it is determined to be undercapitalized, significantly undercapitalized, or critically undercapitalized as defined by FDIC Regulation 325.103(b)(3), (4), and (5) or NCUA Regulation 702.102. The notice provided pursuant to this subparagraph shall be subject to the protections of Section 19542. (b) The Financial Institution Record Match System shall not be subject to any limitation set forth in Chapter 20 (commencing with Section 7460) of Division 7 of Title 1 of the Government Code. However, any use of the information, other than information relating to an address, provided pursuant to this section for any purpose other than the collection of amounts identified in paragraphs (1), (2), and (3) shall be a violation of Section 19542. (1) Delinquent amounts due the board, as imposed under Part 1 (commencing with Section 6001), Part 1.5 (commencing with Section 7200), Part 1.6 (commencing with Section 7251), Part 1.7 (commencing with Section 7280), Part 3 (commencing with Section 8601), Part 3.5 (commencing with Section 9401), Part 6 (commencing with Section 11201), Part 13 (commencing with Section 30001), Part 14 (commencing with Section 32001), Part 18.5 (commencing with Section 38101), Part 19 (commencing with Section 40001), Part 20 (commencing with Section 41001), Part 22 (commencing with Section 43001), Part 22.5 (commencing with Section 44000), Part 23 (commencing with Section 45001), Part 24 (commencing with Section 46001), Part 26 (commencing with Section 50101), Part 30 (commencing with Section 55001), or Part 31 (commencing with Section 60001). (2) Delinquent amounts due the Employment Development Department, as imposed under the Unemployment Insurance Code, or other debts or penalty assessments referred to the Employment Development Department for collection. (3) Delinquent franchise or income tax or other debts referred to the Franchise Tax Board for collection, as imposed under Part 5 (commencing with Section 10701), Part 10 (commencing with Section 17001), this part, or Part 11 (commencing with Section 23001). (c) (1) To effectuate the Financial Institution Record Match System, financial institutions subject to this section shall provide to the Franchise Tax Board on a quarterly basis the name, record address, and other addresses, social security number or other taxpayer identification number, and other identifying information for each delinquent tax debtor, as identified by the Franchise Tax Board by name and social security number or other taxpayer identification number, who maintains an account at the institution. (2) The first data file created by the Franchise Tax Board for purposes of matching tax debtor records to financial institution accountholder records shall be limited to 600,000 tax debtor records. The number of tax debtor records included in a subsequent data file created by the Franchise Tax Board may be increased by no more than 600,000 tax debtor records greater than the number of tax debtor records included in the immediately preceding data file until all eligible tax debtor records are included in the data match file. (d) Unless otherwise required by law, a financial institution furnishing a report or providing information to the Franchise Tax Board pursuant to this section shall not disclose to a depositor or an accountholder, or a codepositor or coaccountholder, that the name, address, social security number or other taxpayer identification number, or other identifying information of that delinquent tax debtor has been received from or furnished to the Franchise Tax Board. (e) A financial institution shall incur no obligation or liability to any person arising from any of the following: (1) Furnishing information to the Franchise Tax Board as required by this section. (2) Failing to disclose to a depositor or accountholder that the name, address, social security number or other taxpayer identification number, or other identifying information of that delinquent tax debtor was included in the data exchange with the Franchise Tax Board required by this section. (3) Any other action taken in good faith to comply with the requirements of this section. (f) The Franchise Tax Board may institute civil proceedings to enforce this section. (g) Any financial institution that willfully fails to comply with the rules and regulations promulgated by the Franchise Tax Board for the administration of delinquent tax collections, unless it is shown to the satisfaction of the Franchise Tax Board that the failure is due to reasonable cause, shall be assessed a penalty upon notice and demand of the Franchise Tax Board and collected in the same manner as tax. The penalty imposed under this section shall be in an amount equal to fifty dollars ($50) for each record not provided, but the total imposed on that financial institution for all such failures during any calendar year shall not exceed one hundred thousand dollars ($100,000). (h) For purposes of this section: (1) “Account” means a demand deposit account, share or share draft account, checking or negotiable withdrawal order account, savings account, time deposit account, or money market mutual fund account, regardless of whether the account bears interest. (2) “Financial institution” means: (A) A depository institution, as defined in Section 1813(c) of Title 12 of the United States Code. (B) An institution-affiliated party, as defined in Section 1813(u) of Title 12 of the United States Code. (C) A federal credit union or state credit union, as defined in Section 1752 of Title 12 of the United States Code, including an institution-affiliated party of a credit union, as defined in Section 1786(r) of Title 12 of the United States Code. (D) A benefit association, insurance company, safe deposit company, money-market fund, or similar entity authorized to do business in this state. (3) “Delinquent tax debtor” means any of the following: (A) Any person liable for any tax, fee, or surcharge amounts, and any penalty, interest, or other amounts required to be paid to the board, where the liability remains unpaid after 30 days from demand for payment by the board, and the person is not making current timely installment payments on the liability under an installment payment agreement as provided by law. (B) Any person liable for any amounts required to be paid to the Employment Development Department or for any debts or penalty assessments referred to the Employment Development Department for collection and the person is not making current timely installment payments on the liability under an approved installment payment agreement as provided by law. (C) Any person liable for any income or franchise tax or other debt referred to the Franchise Tax Board for collection as imposed under Part 5 (commencing with Section 10701), Part 10 (commencing with Section 17001), this part, or Part 11 (commencing with Section 23001), including tax, penalties, interest, and fees, where the tax or debt, including the amount, if any, referred to the Franchise Tax Board for collection remains unpaid after 30 days from demand for payment by the Franchise Tax Board, and the person is not making current timely installment payments on the liability under an agreement pursuant to Section 19008. (i) A financial institution shall be reimbursed by the Franchise Tax Board for actual costs incurred to implement this section. Upon receipt of an invoice from the financial institution, cost reimbursement by the Franchise Tax Board shall be limited to the following: (1) For one-time startup costs of a financial institution, no more than two thousand five hundred dollars ($2,500). (2) For data matching costs of a financial institution, other than one-time startup costs, no more than two hundred fifty dollars ($250) per calendar quarter. (j) The first data exchange for purposes of matching tax debtor records to financial institution accountholder records shall occur no earlier than April 1, 2012. (k) This section shall be operative 120 days after the effective date of Chapter 14 of the Statutes of 2011 and shall apply with respect to persons that are delinquent tax debtors on and after that date. (1) Notwithstanding any other law, on or after January 1, 2013, and on a quarterly basis thereafter, the board and the Employment Development Department shall, in the format and manner specified by the Franchise Tax Board, provide their respective delinquent tax debtor information to the Franchise Tax Board for inclusion in the Financial Institution Record Match System. (2) The Franchise Tax Board shall include the delinquent tax debtor information provided by the board and the Employment Development Department in its data file used to match delinquent tax debtor records to financial institution accountholder records. (3) The Franchise Tax Board shall provide the board or the Employment Development Department, as applicable, with any matched financial institution accountholder record information resulting from the delinquent tax debtor information provided by the board or the Employment Development Department. (4) The board and the Employment Development Department shall reimburse the Franchise Tax Board for any costs incurred by the Franchise Tax Board related to the implementation and administration of this section with respect to delinquent tax debtors described in subparagraph (A) or (B), respectively, of paragraph (3) of subdivision (h). (l) The amendments to this section by the act adding this subdivision shall apply to information provided pursuant to this section before, on, and after the effective date of that act. (Amended by Stats. 2013, Ch. 200, Sec. 1. (AB 1411) Effective January 1, 2014.)
  143. 19280.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5.5. Collection of Amounts Imposed by a Court [19280 - 19283] ( Heading of Article 5.5 renumbered from Article 6 (as added by Stats. 1994, Ch. 1242) by Stats. 1997, Ch. 604, Sec. 16. )

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    Certain court-imposed debts of at least $100 may be sent to the Franchise Tax Board for collection after they are 90 days delinquent, and the Board must collect them using tax-collection methods once notice is given.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5.5. Collection of Amounts Imposed by a Court [19280 - 19283] ( Heading of Article 5.5 renumbered from Article 6 (as added by Stats. 1994, Ch. 1242) by Stats. 1997, Ch. 604, Sec. 16. ) ## 19280. (a) (1) (A) Fines, monetary sanctions, state or local penalties, bail, forfeitures, restitution fines, restitution orders, or any other amounts imposed by a juvenile or superior court of the State of California or the Supreme Court of the State of California upon a person or any other entity, or any payment from the State Bar of California’s Client Security Fund that is part of a final determination from the Client Security Fund, that are due and payable in an amount totaling no less than one hundred dollars ($100), in the aggregate, for criminal offenses, including all offenses involving a violation of the Vehicle Code, any amounts due pursuant to Section 903.1 of the Welfare and Institutions Code, and any amounts due pursuant to Section 6086.10, 6086.13, or 6140.5 of the Business and Professions Code may, no sooner than 90 days after payment of that amount becomes delinquent, be referred by the juvenile or superior court, the county, the state, or the State Bar to the Franchise Tax Board for collection under guidelines prescribed by the Franchise Tax Board. Except as specified in subparagraph (B), the Department of Corrections and Rehabilitation or county may refer a restitution order to the Franchise Tax Board, in accordance with subparagraph (B) of paragraph (2), for any person subject to the restitution order who is or has been under the jurisdiction of the Department of Corrections and Rehabilitation or the county. (B) The Department of Corrections and Rehabilitation or the county shall not refer a restitution order to the Franchise Tax Board if a county agency has been designated by the county board of supervisors to collect restitution from individuals who (i) are serving a sentence in a county jail pursuant to subdivision (h) of Section 1170 of the Penal Code, (ii) are on mandatory supervision pursuant to paragraph (5) of subdivision (h) of Section 1170 of the Penal Code, or (iii) are on postrelease community supervision pursuant to Title 2.05 (commencing with Section 3450) of Part 3 of the Penal Code, the designated county agency has an existing collection system and objects to collection by the Franchise Tax Board, and the designated county agency informs the Department of Corrections and Rehabilitation or the county that it will collect the restitution order. (C) If the crime victim entitled to restitution in the order notifies either the Department of Corrections and Rehabilitation or the designated county agency with regard to their preference of a collecting agency, that preference shall be honored and the collection shall be performed in accordance with the preference of the victim. (2) For purposes of this subdivision: (A) The amounts referred by the juvenile or superior court, the county, the state, or the State Bar under this section may include an administrative fee and any amounts that a government entity may add to the court-imposed obligation as a result of the underlying offense, trial, or conviction. For purposes of this article, those amounts shall be deemed to be imposed by the court. (B) Restitution orders may be referred to the Franchise Tax Board only by a government entity, as agreed upon by the Franchise Tax Board, provided that all of the following apply: (i) The government entity has the authority to collect on behalf of the state or the victim. (ii) The government entity shall be responsible for distributing the restitution order collections, as appropriate. (iii) The government entity shall ensure, in making the referrals and distributions, that it coordinates with any other related collection activities that may occur by superior courts, counties, or other state agencies. (iv) The government entity shall ensure compliance with laws relating to the reimbursement of the Restitution Fund. (C) The Franchise Tax Board shall establish criteria for referral that shall include setting forth a minimum dollar amount subject to referral and collection. (b) The Franchise Tax Board, in conjunction with the Judicial Council, shall seek whatever additional resources are needed to accept referrals from all 58 counties or superior courts. (c) Upon written notice to the debtor from the Franchise Tax Board, any amount referred to the Franchise Tax Board under subdivision (a) and any interest thereon, including any interest on the amount referred under subdivision (a) that accrued prior to the date of referral, shall be treated as final and due and payable to the State of California, and shall be collected from the debtor by the Franchise Tax Board in any manner authorized under the law for collection of a delinquent personal income tax liability, including, but not limited to, issuance of an order and levy under Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the manner provided for earnings withholding orders for taxes. (d) (1) Part 10 (commencing with Section 17001), this part, Part 10.7 (commencing with Section 21001), and Part 11 (commencing with Section 23001) shall apply to amounts referred under this article in the same manner and with the same force and effect and to the full extent as if the language of those laws had been incorporated in full into this article, except to the extent that any provision is either inconsistent with this article or is not relevant to this article. (2) Any information, information sources, or enforcement remedies and capabilities available to the court or the state referring to the amount due described in subdivision (a) shall be available to the Franchise Tax Board to be used in conjunction with, or independent of, the information, information sources, or remedies and capabilities available to the Franchise Tax Board for purposes of administering Part 10 (commencing with Section 17001), this part, Part 10.7 (commencing with Section 21001), or Part 11 (commencing with Section 23001). (e) The activities required to implement and administer this part shall not interfere with the primary mission of the Franchise Tax Board to administer Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001). (f) For amounts referred for collection under subdivision (a), interest shall accrue at the greater of the rate applicable to the amount due being collected or the rate provided under Section 19521. When notice of the amount due includes interest and is mailed to the debtor and the amount is paid within 15 days after the date of notice, interest shall not be imposed for the period after the date of notice. (g) A collection under this article is not a payment of income taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). (h) (1) Both of the following shall apply to any levy or order issued on or after January 1, 2022, under subdivision (c): (A) The maximum amount of disposable earnings of a debtor for any workweek that is subject to collection shall not exceed the amount specified in Section 706.050 of the Code of Civil Procedure. (B) The minimum basic standard of care amount specified in subdivision (a) of Section 704.220 of the Code of Civil Procedure shall not be subject to collection. (2) This subdivision shall not apply to restitution orders or restitution fines. (Amended by Stats. 2021, Ch. 256, Sec. 16. (AB 176) Effective September 23, 2021.)
  144. 19281.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5.5. Collection of Amounts Imposed by a Court [19280 - 19283] ( Heading of Article 5.5 renumbered from Article 6 (as added by Stats. 1994, Ch. 1242) by Stats. 1997, Ch. 604, Sec. 16. )

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    Some Franchise Tax Board and Controller implementation rules are exempt from Chapter 3.5, and other covered rules must be approved by a majority vote of the Franchise Tax Board.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5.5. Collection of Amounts Imposed by a Court [19280 - 19283] ( Heading of Article 5.5 renumbered from Article 6 (as added by Stats. 1994, Ch. 1242) by Stats. 1997, Ch. 604, Sec. 16. ) ## 19281. (a) The Legislature finds that it is essential for fiscal purposes that the program authorized by this part be expeditiously implemented. Accordingly, Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criteria, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board or Controller in implementing and administering the program required by this article. (b) Except as provided in subdivision (a), any standard, criteria, procedure, determination, rule, notice, or guideline that otherwise would be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall be approved by a majority vote of the Franchise Tax Board. (Added by Stats. 1994, Ch. 1242, Sec. 8. Effective January 1, 1995.)
  145. 19282.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5.5. Collection of Amounts Imposed by a Court [19280 - 19283] ( Heading of Article 5.5 renumbered from Article 6 (as added by Stats. 1994, Ch. 1242) by Stats. 1997, Ch. 604, Sec. 16. )

    Verify source ↗

    Money collected under this article must be sent to the Treasurer, deposited in the State Treasury, and then transferred according to the section’s allocation rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5.5. Collection of Amounts Imposed by a Court [19280 - 19283] ( Heading of Article 5.5 renumbered from Article 6 (as added by Stats. 1994, Ch. 1242) by Stats. 1997, Ch. 604, Sec. 16. ) ## 19282. (a) Except as otherwise provided in subdivision (e), amounts collected under this article shall be transmitted to the Treasurer and deposited in the State Treasury to the credit of the Court Collection Account in the General Fund, which is hereby created. Amounts deposited in the Court Collection Account shall, less an amount that is equal to the costs incurred by the Franchise Tax Board in administering the program authorized by this article, be transferred by the Controller either to the county or to the state fund to which the amount due was originally owing or as otherwise directed by contractual agreement. If the amount collected is not sufficient to satisfy the amounts referred for collection pursuant to Section 19280 that are to be paid by an offender, then the amount paid shall be allocated for distribution on a pro rata basis, as defined in subdivision (d), except in counties where the board of supervisors has established a priority of payment for amounts collected under this article pursuant to Section 1203.1d of the Penal Code. The amount that is equal to the costs incurred by the Franchise Tax Board in administering the program authorized by this article shall be transferred by the Controller to the General Fund for the purpose of recovering the amount expended by the Franchise Tax Board from General Fund appropriations for the purpose of implementing and administering the program authorized by this article, and related statutes as added or amended by the act adding this article. (b) It is the intent of the Legislature that costs to the Franchise Tax Board to administer this article for the 2025–26 fiscal year and each fiscal year thereafter not exceed 20 percent of the amount it collects pursuant to this article. (c) Notwithstanding Section 13340 of the Government Code, all moneys deposited in the Court Collection Account pursuant to this section are hereby continuously appropriated, without regard to fiscal years, for purposes of making distributions pursuant to subdivision (a). (d) For purposes of this section, “pro rata basis” means a distribution determined as follows: the sum of the amounts referred for collection pursuant to Section 19280 to be paid by an offender shall be allocated and distributed in the same proportion that each of the elements has to the sum. (e) For amounts collected pursuant to a restitution fine or restitution order, subdivision (a) is modified to require the deposit and disbursement of funds collected under this article to be in accordance with the laws relating to reimbursement of the State Restitution Fund. (Amended by Stats. 2025, Ch. 17, Sec. 16. (SB 132) Effective June 27, 2025.)
  146. 19283.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5.5. Collection of Amounts Imposed by a Court [19280 - 19283] ( Heading of Article 5.5 renumbered from Article 6 (as added by Stats. 1994, Ch. 1242) by Stats. 1997, Ch. 604, Sec. 16. )

    Verify source ↗

    The Department of Justice must, in consultation with the Franchise Tax Board, examine ways to improve this article through integration with the Wanted Persons System and report its findings and recommendations to the Legislature by January 1, 2002.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 5.5. Collection of Amounts Imposed by a Court [19280 - 19283] ( Heading of Article 5.5 renumbered from Article 6 (as added by Stats. 1994, Ch. 1242) by Stats. 1997, Ch. 604, Sec. 16. ) ## 19283. The Department of Justice, in consultation with the Franchise Tax Board, shall examine ways to enhance the use and effectiveness of this article through integration with the Department of Justice’s Wanted Persons System and shall report the findings and recommendations to the Legislature on or before January 1, 2002. (Amended by Stats. 2004, Ch. 380, Sec. 4. Effective January 1, 2005.)
  147. 19285.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. )

    Verify source ↗

    This section defines “CalSavers Retirement Savings Program” and “eligible employer” by reference to Government Code section 100000.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. ) ## 19285. For purposes of this article: (a) “CalSavers Retirement Savings Program” shall have the same meaning as “CalSavers Retirement Savings Program” as described in subdivision (b) of Section 100000 of the Government Code. (b) “Eligible employer” shall have the same meaning as “eligible employer” as described in subdivision (d) of Section 100000 of the Government Code. (Added by Stats. 2020, Ch. 21, Sec. 15. (AB 102) Effective June 29, 2020.)
  148. 19286.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. )

    Verify source ↗

    The Franchise Tax Board may collect certain referred penalties from eligible employers, and must set referral criteria that include a minimum dollar amount.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. ) ## 19286. (a) (1) Penalties imposed pursuant to Title 21 (commencing with Section 100000) of the Government Code, upon an eligible employer for failure to comply with Title 21 (commencing with Section 100000) of the Government Code, may be referred by the CalSavers Retirement Savings Board to the Franchise Tax Board for collection under guidelines prescribed by the Franchise Tax Board. (2) The Franchise Tax Board shall establish criteria for referral that shall include setting forth a minimum dollar amount subject to referral and collection. (b) Upon written notice to a noncompliant eligible employer from the Franchise Tax Board, any amount referred to the Franchise Tax Board under subdivision (a) shall be treated as final and due and payable to the State of California, and may be collected from the eligible employer by the Franchise Tax Board in any manner authorized under the law for collection of a delinquent personal income tax liability, except that an overpayment of any liability imposed under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part shall not be credited against any balance due pursuant to this section. (c) Any information, information sources, or enforcement remedies and capabilities available to the CalSavers Retirement Savings Board or the state referring to the amount due described in subdivision (a) shall be available to the Franchise Tax Board to be used in conjunction with, or independent of, the information, information sources, or remedies and capabilities available to the Franchise Tax Board. (d) The activities required to implement and administer this article shall not interfere with the primary mission of the Franchise Tax Board to administer Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), and Part 11 (commencing with Section 23001). (e) A collection under this article is not a payment of income taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). (Added by Stats. 2020, Ch. 21, Sec. 15. (AB 102) Effective June 29, 2020.)
  149. 19287.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. )

    Verify source ↗

    The Franchise Tax Board must send an eligible employer a first notice, and then a second notice in specified circumstances, about a penalty for noncompliance with Title 21.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. ) ## 19287. (a) The Franchise Tax Board shall issue a first notice of the imposition of a penalty for noncompliance with Title 21 (commencing with Section 100000) of the Government Code to an eligible employer after the CalSavers Retirement Savings Board informs the Franchise Tax Board of the eligible employer’s noncompliance (b) Unless an appeal is filed pursuant to Section 19288, within 90 days after the issuance of the first notice, as provided in subdivision (a), the Franchise Tax Board shall issue a second notice of the imposition of a penalty for noncompliance under Title 21 (commencing with Section 100000) of the Government Code to an eligible employer. (c) If an appeal is filed pursuant to Section 19288, within 90 days after a determination by the Franchise Tax Board sustaining the penalty, the Franchise Tax Board shall issue a second notice of the imposition of a penalty for noncompliance under Title 21 (commencing with Section 100000) of the Government Code to an eligible employer. (Added by Stats. 2020, Ch. 21, Sec. 15. (AB 102) Effective June 29, 2020.)
  150. 19288.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. )

    Verify source ↗

    An eligible employer may appeal a penalty within 90 days after a specified notice is issued, and the Franchise Tax Board must hear the appeal and notify both parties in writing of its decision.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. ) ## 19288. (a) Within 90 days after the issuance of the notice described in subdivision (a) of Section 19287, an eligible employer may appeal the imposition of a penalty for noncompliance under Title 21 (commencing with Section 100000) of the Government Code. (b) The Franchise Tax Board shall hear and determine an eligible employer’s appeal of the CalSavers Retirement Savings Board’s imposition of a penalty as provided in Government Code Section 100033. (c) The Franchise Tax Board, upon the conclusion of the appeal shall notify the eligible employer and the CalSavers Retirement Savings Board of its determination in writing. (Added by Stats. 2020, Ch. 21, Sec. 15. (AB 102) Effective June 29, 2020.)
  151. 19289.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. )

    Verify source ↗

    Amounts collected under this article must be sent to the CalSavers Retirement Savings Board for deposit in the CalSavers Retirement Savings Trust, or remitted through the Fi$Cal accounting system.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. ) ## 19289. Amounts collected under this article shall be transmitted to the CalSavers Retirement Savings Board for deposit in the CalSavers Retirement Savings Trust pursuant to Title 21 (commencing with Section 100000) of the Government Code, or remitted by means of the Fi$Cal accounting system. (Added by Stats. 2020, Ch. 21, Sec. 15. (AB 102) Effective June 29, 2020.)
  152. 19290.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. )

    Verify source ↗

    The Franchise Tax Board must seek additional resources to accept referrals from the CalSavers Retirement Savings Board.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. ) ## 19290. The Franchise Tax Board shall seek additional resources needed to accept referrals from CalSavers Retirement Savings Board pursuant to Section 19286. (Added by Stats. 2020, Ch. 21, Sec. 15. (AB 102) Effective June 29, 2020.)
  153. 19290.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. )

    Verify source ↗

    The Franchise Tax Board may adopt regulations needed or appropriate to carry out this article, and those regulations are not subject to the Administrative Procedure Act.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals [19285 - 19290.1] ( Article 6 added by Stats. 2020, Ch. 21, Sec. 15. ) ## 19290.1. The Franchise Tax Board may prescribe regulations necessary or appropriate to carry out the purposes of this article. The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any regulation adopted by the Franchise Tax Board, pursuant to this article. (Added by Stats. 2020, Ch. 21, Sec. 15. (AB 102) Effective June 29, 2020.)
  154. 19291.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Collection of Tax Debts Due to the Internal Revenue Service or Other States [19291- 19291.] ( Article 7 added by Stats. 2011, Ch. 455, Sec. 12. )

    Verify source ↗

    The Franchise Tax Board may make agreements to collect certain delinquent tax debts, and after written notice it must collect referred amounts as due and payable using authorized collection methods.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 7. Collection of Tax Debts Due to the Internal Revenue Service or Other States [19291- 19291.] ( Article 7 added by Stats. 2011, Ch. 455, Sec. 12. ) ## 19291. (a) The Franchise Tax Board may enter into an agreement to collect any delinquent tax debt due to the Internal Revenue Service or any other state imposing an income tax or tax measured by income if, pursuant to Section 19377.5, the Internal Revenue Service or that state has entered into an agreement to collect delinquent tax debts due the Franchise Tax Board. (b) Upon written notice to the debtor from the Franchise Tax Board, any amount referred to the Franchise Tax Board under subdivision (a) shall be treated as final and due and payable to the State of California, and shall be collected from the debtor by the Franchise Tax Board in any manner authorized under the law for collection of a delinquent income tax liability, including, but not limited to, the recording of a notice of state tax lien under Article 2 (commencing with Section 7170) of Chapter 14 of Division 7 of Title 1 of the Government Code, and the issuance of an order and levy under Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the manner provided for earnings withholding orders for taxes. (c) Part 10 (commencing with Section 17001), this part, Part 10.7 (commencing with Section 21001), and Part 11 (commencing with Section 23001) shall apply to amounts referred under this section in the same manner and with the same force and effect and to the full extent as if the language of those laws had been incorporated in full into this section, except to the extent that any provision is either inconsistent with this section or is not relevant to this section. (d) The activities required to implement and administer this section shall not interfere with the primary mission of the Franchise Tax Board to administer Part 10 (commencing with Section 17001) and Part 11 (commencing with Section 23001). (e) In no event shall a collection under this section be construed as a payment of income taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001), a penalty imposed under Part 32 (commencing with Section 61000), or a premium assistance subsidy under Title 25 (commencing with Section 100800) of the Government Code. (Amended by Stats. 2019, Ch. 38, Sec. 38. (SB 78) Effective June 27, 2019.)
  155. 19294.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Collection of Recaptured California Small Business COVID-19 Relief Grants [19294 - 19295] ( Article 8 added by Stats. 2021, Ch. 7, Sec. 3. )

    Verify source ↗

    CalOSBA must send the Franchise Tax Board a list of grantees and recaptured grant amounts, and the Franchise Tax Board must collect those amounts from the grantees.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Collection of Recaptured California Small Business COVID-19 Relief Grants [19294 - 19295] ( Article 8 added by Stats. 2021, Ch. 7, Sec. 3. ) ## 19294. (a) For purposes of this section, the following definitions shall apply: (1) “CalOSBA” or “office” means the Office of Small Business Advocate within the Governor’s Office of Business and Economic Development. (2) “Recaptured grant amount” means the amount identified in any recommendation for recapture of a grant approved, in whole or in part, by CalOSBA. (b) CalOSBA shall provide to the Franchise Tax Board a list of grantees and their respective recaptured grant amounts as approved, in whole or in part, by CalOSBA pursuant to Section 12100.82.5 or 12100.91.5 of the Government Code for collection. (c) Any recaptured grant amount shall be treated as final and due and payable to the State of California, and shall be collected from the grantee by the Franchise Tax Board in any manner authorized under the law for collection of a delinquent personal income tax liability, including, but not limited to, issuance of an order and levy under Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the manner provided for earnings withholding orders for taxes, and any overpayment of any liability imposed under this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23001) shall be credited against any balance due pursuant to this section. (d) The Controller may, in the Controller’s discretion, offset any amount due a grantee by a state agency against any recaptured grant amount pursuant to Article 2 (commencing with Section 12410) of Chapter 5 of Part 2 of Division 3 of Title 2 of the Government Code. (e) This part, Part 10 (commencing with Section 17001), Part 10.7 (commencing with Section 21001), and Part 11 (commencing with Section 23001) shall apply to amounts provided to the Franchise Tax Board under this section in the same manner and with the same force and effect and to the full extent as if the language of those laws had been incorporated in full into this article, except to the extent that any provision is either inconsistent with this article or is not relevant to this article. (f) For amounts that CalOSBA provided to the Franchise Tax Board for collection under subdivision (b), interest shall accrue at the greater of the rate applicable to the amount due being collected or the rate provided under Section 19521. When notice of the amount due includes interest and is mailed to the grantee and the amount is paid within 15 days after the date of notice, interest shall not be imposed for the period after the date of notice. (g) Any information, information sources, or enforcement remedies and capabilities available to CalOSBA or the state with respect to the recaptured grant amount described in subdivision (b) shall be available to the Franchise Tax Board to be used in conjunction with, or independent of, the information, information sources, or remedies and capabilities available to the Franchise Tax Board. (h) The activities required to implement and administer this article shall not interfere with the primary mission of the Franchise Tax Board to administer Part 10 (commencing with Section 17001), this part, and Part 11 (commencing with Section 23001). (i) A collection under this article is not a payment of income taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). (Amended (as added by Stats. 2021, Ch. 7, Sec. 3) by Stats. 2021, Ch. 256, Sec. 17. (AB 176) Effective September 23, 2021. Repealed as of December 1, 2030, pursuant to Section 19295.)
  156. 19295.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Collection of Recaptured California Small Business COVID-19 Relief Grants [19294 - 19295] ( Article 8 added by Stats. 2021, Ch. 7, Sec. 3. )

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    This article stays in effect until December 1, 2030, when it is repealed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8. Collection of Recaptured California Small Business COVID-19 Relief Grants [19294 - 19295] ( Article 8 added by Stats. 2021, Ch. 7, Sec. 3. ) ## 19295. This article shall remain in effect only until December 1, 2030, and as of that date is repealed. (Added by Stats. 2021, Ch. 7, Sec. 3. (SB 87) Effective February 23, 2021. Repealed as of December 1, 2030, by its own provisions. Note: Repeal affects Article 8, commencing with Section 19294.)
  157. 19295.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8.1. Collection of Recaptured California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grants [19295.1 - 19295.2] ( Article 8.1 added by Stats. 2022, Ch. 736, Sec. 5. )

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    GO-Biz must send the Franchise Tax Board a list of grantees and recaptured grant amounts, and the Franchise Tax Board must collect those amounts from grantees.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8.1. Collection of Recaptured California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grants [19295.1 - 19295.2] ( Article 8.1 added by Stats. 2022, Ch. 736, Sec. 5. ) ## 19295.1. (a) For purposes of this section, all the following definitions shall apply: (1) “California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program” or “program” means the grant program established under Article 9.1 (commencing with Section 12100.96) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code. (2) “GO-Biz” or “office” means the Governor’s Office of Business and Economic Development. (3) “Recaptured grant amount” means the amount identified in any recommendation for recapture of a grant approved, in whole or in part, by GO-Biz. (b) GO-Biz shall provide to the Franchise Tax Board a list of grantees and their respective recaptured grant amounts as approved, in whole or in part, by GO-Biz pursuant to Section 12100.97 of the Government Code for collection. (c) Any recaptured grant amount shall be treated as final and due and payable to the State of California, and shall be collected from the grantee by the Franchise Tax Board in any manner authorized under the law for collection of a delinquent personal income tax liability, including, but not limited to, issuance of an order and levy under Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the manner provided for earnings withholding orders for taxes, and any overpayment of any liability imposed under this part, Part 10 (commencing with Section 17001), or Part 11 (commencing with Section 23001) shall be credited against any balance due pursuant to this section. (d) The Controller may, in the Controller’s discretion, offset any amount due a grantee by a state agency against any recaptured grant amount pursuant to Article 2 (commencing with Section 12410) of Chapter 5 of Part 2 of Division 3 of Title 2 of the Government Code. (e) This part, Part 10 (commencing with Section 17001), Part 10.7 (commencing with Section 21001), and Part 11 (commencing with Section 23001) shall apply to amounts provided to the Franchise Tax Board under this section in the same manner and with the same force and effect and to the full extent as if the language of those laws had been incorporated in full into this article, except to the extent that any provision is either inconsistent with this article or is not relevant to this article. (f) For amounts that GO-Biz provided to the Franchise Tax Board for collection under subdivision (b), interest shall accrue at the greater of the rate applicable to the amount due being collected or the rate provided under Section 19521. When notice of the amount due includes interest and is mailed to the grantee and the amount is paid within 15 days after the date of notice, interest shall not be imposed for the period after the date of notice. (g) Any information, information sources, or enforcement remedies and capabilities available to GO-Biz or the state with respect to the recaptured grant amount described in subdivision (b) shall be available to the Franchise Tax Board to be used in conjunction with, or independent of, the information, information sources, or remedies and capabilities available to the Franchise Tax Board. (h) The activities required to implement and administer this article shall not interfere with the primary mission of the Franchise Tax Board to administer Part 10 (commencing with Section 17001), this part, and Part 11 (commencing with Section 23001). (i) A collection under this article is not a payment of income taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001). (Added by Stats. 2022, Ch. 736, Sec. 5. (AB 152) Effective September 29, 2022. Repealed as of December 1, 2030, pursuant to Section 19295.2.)
  158. 19295.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8.1. Collection of Recaptured California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grants [19295.1 - 19295.2] ( Article 8.1 added by Stats. 2022, Ch. 736, Sec. 5. )

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    This article stays in effect only until December 1, 2030, and is repealed on that date.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 8.1. Collection of Recaptured California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grants [19295.1 - 19295.2] ( Article 8.1 added by Stats. 2022, Ch. 736, Sec. 5. ) ## 19295.2. This article shall remain in effect only until December 1, 2030, and as of that date is repealed. (Added by Stats. 2022, Ch. 736, Sec. 5. (AB 152) Effective September 29, 2022. Repealed as of December 1, 2030, by its own provisions. Note: Repeal affects Article 8.1, commencing with Section 19295.1.)
  159. 19296.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 9. Collection of Recaptured California Competes Grants [19296 - 19298] ( Heading of Article 9 renumbered from Article 8 (as added by Stats. 2021, Ch. 74, Sec. 22) by Stats. 2021, Ch. 256, Sec. 18. )

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    This section defines key terms used in Article 9 on collection of recaptured California Competes grants.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 9. Collection of Recaptured California Competes Grants [19296 - 19298] ( Heading of Article 9 renumbered from Article 8 (as added by Stats. 2021, Ch. 74, Sec. 22) by Stats. 2021, Ch. 256, Sec. 18. ) ## 19296. For purposes of this article, all of the following definitions apply: (a) “California Competes Grant Program” means the program that authorizes the grants allowed under Article 4.4 (commencing with Section 12096.6) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code. (b) “Committee” means the California Competes Tax Credit Committee established in Section 18410.2. (c) “GO-Biz” means the Governor’s Office of Business and Economic Development. (d) “Qualified grantee” means an applicant for grants the California Competes Grant Program that satisfies the requirements of subdivision (b) of Section 12096.6.1 of the Government Code. (e) “Recaptured grant amount” shall mean the amount identified in any recommendation for recapture of a grant approved, in whole or in part, by the committee pursuant to the California Competes Grant Program and Section 18410.2 of this code. (Added by renumbering Section 19292 by Stats. 2021, Ch. 256, Sec. 19. (AB 176) Effective September 23, 2021.)
  160. 19297.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 9. Collection of Recaptured California Competes Grants [19296 - 19298] ( Heading of Article 9 renumbered from Article 8 (as added by Stats. 2021, Ch. 74, Sec. 22) by Stats. 2021, Ch. 256, Sec. 18. )

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    GO-Biz must send the Franchise Tax Board a list of qualified grantees and recaptured grant amounts, and the Franchise Tax Board must collect those amounts from the grantee.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 9. Collection of Recaptured California Competes Grants [19296 - 19298] ( Heading of Article 9 renumbered from Article 8 (as added by Stats. 2021, Ch. 74, Sec. 22) by Stats. 2021, Ch. 256, Sec. 18. ) ## 19297. (a) GO-Biz shall provide to the Franchise Tax Board a list of qualified grantees and their respective recaptured grant amounts as approved, in whole or in part, by the committee pursuant to Section 18410.2 for collection. (b) Any recaptured grant amount shall be treated as final and due and payable to the State of California, and shall be collected from the qualified grantee by the Franchise Tax Board in any manner authorized under the law for collection of a delinquent personal income tax liability, including, but not limited to, issuance of an order and levy under Article 4 (commencing with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure in the manner provided for earnings withholding orders for taxes, and any overpayment of any liability imposed under this part or, Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) shall be credited against any balance due pursuant to this section. (c) The Controller may, in the Controller’s discretion, offset any amount due a qualified grantee by a state agency against any recaptured grant amount pursuant to Article 2 (commencing with Section 12410) of Chapter 5 of Part 2 of Division 3 of Title 2 of the Government Code. (d) This part and Part 10 (commencing with Section 17001), Part 10.7 (commencing with Section 21001), and Part 11 (commencing with Section 23001) shall apply to amounts provided to the Franchise Tax Board under this section in the same manner and with the same force and effect and to the full extent as if the language of those laws had been incorporated in full into this article, except to the extent that any provision is either inconsistent with this article or is not relevant to this article. (e) For amounts that GO-Biz provided to the Franchise Tax Board for collection under subdivision (a), interest shall accrue at the greater of the rate applicable to the amount due being collected or the rate provided under Section 19521. When notice of the amount due includes interest and is mailed to the qualified grantee and the amount is paid within 15 days after the date of notice, interest shall not be imposed for the period after the date of notice. (f) Any information, information sources, or enforcement remedies and capabilities available to GO-Biz or the state with respect to the recaptured grant amount described in subdivision (a) shall be available to the Franchise Tax Board to be used in conjunction with, or independent of, the information, information sources, or remedies and capabilities available to the Franchise Tax Board. (g) The activities required to implement and administer this article shall not interfere with the primary mission of the Franchise Tax Board to administer Part 10 (commencing with Section 17001), this part, and Part 11 (commencing with Section 23001). (h) A collection under this article is not a payment of income taxes imposed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) of Division 2 this code. (Added by renumbering Section 19293 by Stats. 2021, Ch. 256, Sec. 20. (AB 176) Effective September 23, 2021.)
  161. 19298.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 9. Collection of Recaptured California Competes Grants [19296 - 19298] ( Heading of Article 9 renumbered from Article 8 (as added by Stats. 2021, Ch. 74, Sec. 22) by Stats. 2021, Ch. 256, Sec. 18. )

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    The Franchise Tax Board and GO-Biz may issue regulations for this article, and they may share information with each other to help collect recaptured grant amounts.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 5. Collection of Tax [19201 - 19298] ( Chapter 5 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 9. Collection of Recaptured California Competes Grants [19296 - 19298] ( Heading of Article 9 renumbered from Article 8 (as added by Stats. 2021, Ch. 74, Sec. 22) by Stats. 2021, Ch. 256, Sec. 18. ) ## 19298. (a) The Franchise Tax Board and GO-Biz may prescribe regulations as necessary or appropriate to carry out the purposes of this article. (b) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of the Government Code) shall not apply to any regulation, standard, criterion, procedure, determination, rule, notice, guideline, or any other guidance established or issued by the Franchise Tax Board or GO-Biz pursuant to this article. (c) Except as provided in this article, Section 19542 shall apply to all information obtained by the Franchise Tax Board and GO-Biz for the purpose of administering the California Competes Grant Program. (d) Notwithstanding Section 19542, the Franchise Tax Board may disclose information to GO-Biz and GO-Biz may disclose information to the Franchise Tax Board to facilitate the collection of recaptured grant amounts under this article. (Added by renumbering Section 19294 (as added by Stats. 2021, Ch. 74, Sec. 22) by Stats. 2021, Ch. 256, Sec. 21. (AB 176) Effective September 23, 2021.)
  162. 19301.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If the Franchise Tax Board or the board finds an overpayment, it may credit the overpayment against amounts due and must refund any remaining balance to the taxpayer or the specified recipients.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19301. (a) If the Franchise Tax Board or the board, as the case may be, finds that there has been an overpayment of any liability imposed under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part by a taxpayer for any year for any reason, the amount of the overpayment may be credited against any amount then due from the taxpayer and the balance shall be refunded to the taxpayer. (b) In the case of a joint return filed under Section 18521, the amount of the overpayment may be credited against the amount then due from both taxpayers and the balance shall be refunded to both taxpayers in the names under which the return was paid. (c) In the case of a corporation, the balance shall be refunded to the taxpayer or its successor through reorganization, merger, or consolidation, or to its shareholders upon dissolution. (Amended by Stats. 1997, Ch. 605, Sec. 35. Effective January 1, 1998.)
  163. 19302.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If the Franchise Tax Board finds a taxpayer paid too much under this part, it must record that fact and may credit the amount against amounts due or refund it.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19302. If the Franchise Tax Board determines that the taxpayer paid an amount not required to be paid under this part, the Franchise Tax Board shall set forth that fact in its records and may either credit the amount on any amounts then due and payable under this part from the taxpayer by whom the amount was paid or refund the amount or the balance to the taxpayer or the taxpayer’s successors, administrators, or executors. (Amended by Stats. 1994, Ch. 726, Sec. 35. Effective September 22, 1994.)
  164. 19303.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board must revise certain tax returns to let an individual taxpayer choose more than one bank account for direct deposit of a refund.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19303. The Franchise Tax Board shall revise returns required to be filed pursuant to Article 1 (commencing with Section 18501) of Chapter 2 of Part 10.2 of Division 2 to allow a taxpayer, who is an individual, to designate more than one account at financial institutions for direct deposit of the taxpayer’s refund. (Added by Stats. 2006, Ch. 90, Sec. 1. Effective January 1, 2007.)
  165. 19304.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    The Franchise Tax Board must update taxpayer form instructions to explain that taxpayers can direct part of a refund into the Scholarshare trust or the California ABLE Program Trust.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19304. (a) The Franchise Tax Board shall revise taxpayer form instructions, for returns required to be filed, pursuant to Article 1 (commencing with Section 18501) of Chapter 2, to include information about the ability of a taxpayer to directly deposit a portion of the refund into the Golden State Scholarshare College Savings Trust or into the California ABLE Program Trust. (b) The Scholarshare Investment Board shall provide the Franchise Tax Board with a description of the Golden State Scholarshare College Savings Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less. (c) The California ABLE Act Board shall provide the Franchise Tax Board with a description of the California ABLE Program Trust on or before a specified date provided by the Franchise Tax Board. The length of the description shall be five lines or less. (d) The Franchise Tax Board shall revise the taxpayer form instructions in the most cost-effective manner. (e) For purposes of this section, “Golden State Scholarshare College Savings Trust” has the meaning set forth in subdivision (e) of Section 69980 of the Education Code. (f) For purposes of this section, “California ABLE Program Trust” has the meaning set forth in Section 4875 of the Welfare and Institutions Code. (Amended by Stats. 2025, Ch. 722, Sec. 1. (AB 1076) Effective January 1, 2026.)
  166. 19306.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A credit or refund generally cannot be allowed or made after the listed limitation period unless a claim is filed in time or the Franchise Tax Board acts before the period expires.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19306. (a) No credit or refund shall be allowed or made after a period ending four years from the date the return was filed (if filed within the time prescribed by Section 18567 or 18604, whichever is applicable), four years from the last day prescribed for filing the return (determined without regard to any extension of time for filing the return), or after one year from the date of the overpayment, whichever period expires later, unless before the expiration of that period a claim therefor is filed by the taxpayer, or unless before the expiration of that period the Franchise Tax Board allows a credit, makes a refund, or mails a notice of proposed overpayment on a preprinted form prescribed by the Franchise Tax Board. (b) The amendments to this section by the act adding this subdivision shall be applied to all claims and refunds, without regard to taxable year, for which the statute of limitations has not expired on the date that this act takes effect. (Amended by Stats. 2001, Ch. 543, Sec. 12. Effective January 1, 2002.)
  167. 19307.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A timely return filed within four years can count as a claim for refund if the excess is over $1. A refund of withheld or estimated tax is not allowed to an employee or taxpayer who does not file a return for that taxable year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19307. For purposes of Section 19306, a return filed within four years from the last day prescribed for filing the return showing a credit allowable by Section 19002 or estimated tax paid pursuant to Section 19023, 19024, or 19136 in excess of the tax due, shall be considered a claim for refund of the excess if the amount thereof is more than one dollar ($1). No refund of tax withheld or estimated tax paid shall be allowed to an employee or taxpayer who fails to file a return for the taxable year in respect of which the tax withheld or estimated tax was allowable as a credit. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  168. 19308.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A claim for credit or refund follows the same filing period that applies when the Franchise Tax Board may mail a notice of proposed deficiency assessment, if the taxpayer has made one of the specified extension agreements.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19308. The period within which a claim for credit or refund may be filed, or credit or refund allowed or made if no claim is filed, shall be the period within which the Franchise Tax Board may mail a notice of proposed deficiency assessment under the same circumstances, if either of the following apply: (a) The taxpayer has, within the period prescribed in Section 19306, agreed in writing, under Article 3 (commencing with Section 19031) of Chapter 4, to extend the time within which the Franchise Tax Board may propose a deficiency assessment. (b) The taxpayer has agreed with the United States Commissioner of Internal Revenue for an extension (or renewals thereof) of the period for proposing and assessing deficiencies in federal income tax for any year. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  169. 19309.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Section 19306 applies to claims, credits, or refunds that were filed, allowed, or made before an agreement under Section 19308 is executed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19309. Section 19306 shall apply to any claim filed, or credit or refund allowed or made, before the execution of an agreement pursuant to Section 19308. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  170. 19311.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    This section sets deadlines for filing a tax refund or credit claim after a final federal determination, and lets the Franchise Tax Board allow a credit, make a refund, or send a proposed overpayment notice within specified time limits.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19311. (a) (1) If a change or correction is made or allowed by the Commissioner of Internal Revenue or other officer of the United States or other competent authority, a claim for credit or refund resulting from the adjustment may be filed by the taxpayer within two years from the date of the final federal determination (as defined in Section 18622 or 18622.5), or within the period provided in Section 19306, 19307, 19308, or 19316, whichever period expires later. (2) Within two years of the date of the final determination (as defined in Section 18622 or 18622.5) or within the period provided in Section 19306, 19307, or 19308, whichever period expires later, the Franchise Tax Board may allow a credit, make a refund, or mail to the taxpayer a notice of proposed overpayment resulting from the final federal determination. (b) The amendments made by the act adding this paragraph shall apply, without regard to taxable year, to federal determinations that become final on or after the effective date of the act adding this paragraph. (c) (1) For adjustments resulting in a tax imposed under paragraph (1) of subdivision (c) of Section 18622.5, paragraph (1) of subdivision (a) is modified by substituting “partnership” for “taxpayer.” (2) This subdivision shall apply to final federal determinations assessed pursuant to amendments made to Subchapter C of Chapter 63 of the Internal Revenue Code as in effect January 1, 2018. (Amended by Stats. 2019, Ch. 332, Sec. 2. (SB 790) Effective January 1, 2020.)
  171. 19311.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A claim for credit or refund may be filed for certain income-tax overpayments tied to credits for taxes paid to another state, within the stated filing period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19311.5. (a) If any taxes paid to another state result in an allowable credit under Section 18001, 18002, 18003, 18004, 18005, or 18006, a claim for credit or refund of an overpayment of income tax attributable to a credit allowable under any of these sections may be filed within one year from the date tax is paid to the other state or within the period provided in Section 19306, whichever period expires later. (b) This section shall apply to taxes paid to another state on or after January 1, 2009. (Added by Stats. 2008, Ch. 305, Sec. 6. Effective January 1, 2009. Note: See Sec. 12 of Ch. 305.)
  172. 19312.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Certain refund or credit claims tied to bad debts or worthless securities must be filed within seven years of the return filing deadline for the year involved.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19312. Insofar as the claim for credit or refund relates to an overpayment on account of the deductibility, under Section 24348 of this code or Section 166 of the Internal Revenue Code, of a debt as one which became worthless, or a loss from worthlessness of a security under Section 24347 or 24348 of this code or Section 165(g) or 166 of the Internal Revenue Code, or an erroneous inclusion of an amount attributable to the recovery of a bad debt, prior tax or delinquency amount, under Section 111 of the Internal Revenue Code due to an adjustment of a bad debt deduction under Section 24348 of this code or Section 166 of the Internal Revenue Code, or a loss deduction from worthlessness of a security under Section 24347 of this code or Section 165(g) of the Internal Revenue Code, in lieu of the period of limitations prescribed in Section 19306, the period shall be seven years from the date prescribed by law for filing the return for the year with respect to which the claim is made. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  173. 19313.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    For certain tax refund or credit claims tied to partnership items, the filing period cannot end before the later of two specified dates.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19313. (a) In the case of any tax imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) with respect to any person, the period for filing a claim for credit or refund of any overpayment attributable to any partnership item of a federally registered partnership shall not expire before the later of the following: (1) The date which is five years after the date prescribed by law (including extensions thereof) for filing the partnership return for the partnership taxable year in which the item arose. (2) If an agreement under Section 6501(c)(4) of the Internal Revenue Code of 1954 extending the period for the assessment of any deficiency attributable to the partnership item is made before the date specified in paragraph (1), the date six months after the expiration of the extension. In any case to which the preceding sentence applies, the amount of the credit or refund may exceed the portion of the tax paid within the period provided in Section 19306 or 19308, whichever is applicable. (b) For purposes of this subdivision, “partnership item” and “federally registered partnership” have the same meanings as when used in Section 19063. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  174. 19314.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A taxpayer may use an overpayment as an offset against a tax deficiency if the overpayment comes from certain transfers of income or deductions, but the offset expires after seven years and a refund generally requires a timely claim or prior credit/refund by the Franchise Tax Board.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19314. (a) Notwithstanding any statute of limitations otherwise provided for in this part, any overpayment due a taxpayer for any year, shall be allowed as an offset in computing any deficiency in tax, for the same or any other year, if the overpayment results from any of the following: (1) A transfer of items of income or deductions or both to or from another year for the same taxpayer. (2) A transfer of items of income or deductions or both for the same year for a related taxpayer described in Section 19110. (3) A transfer of items of income or deductions, or both, to or from another taxpayer for the same or different years if the items of income or deductions are transferred between affiliated taxpayers whose tax is determined under Chapter 17 (commencing with Section 25101) of Part 11. (b) The offset provided under subdivision (a) shall not be allowed after the expiration of seven years from the due date of the return or returns on which the overpayment is determined. (c) No refund shall be allowed under subdivision (a) unless before the period set forth in Section 19306 a claim therefor is filed by the taxpayer or unless before the expiration of that period the Franchise Tax Board has allowed a credit or made a refund. (Amended by Stats. 1994, Ch. 726, Sec. 37. Effective September 22, 1994.)
  175. 19316.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    For certain individual taxpayers, the time limits in specified refund-claim sections are suspended while the taxpayer is financially disabled.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19316. (a) In the case of an individual taxpayer under the Personal Income Tax Law (Part 10 (commencing with Section 17001)), the running of any period specified in Section 19306, 19308, 19311, 19312, or 19313 shall be suspended during any period during which that individual taxpayer is “financially disabled” as defined in subdivision (b). The financial disability of an individual taxpayer shall be established in accordance with those procedures and requirements specified by the Franchise Tax Board. (b) (1) For purposes of this section, except as otherwise provided in paragraph (2), an individual taxpayer is “financially disabled” if that individual taxpayer is unable to manage his or her financial affairs by reason of a medically determinable physical or mental impairment that is either deemed to be a terminal impairment or is expected to last for a continuous period of not less than 12 months. (2) An individual taxpayer shall not be considered to be “financially disabled” for any period during which that individual’s spouse or any other person is legally authorized to act on that individual’s behalf in financial matters. (c) This section applies to periods of disability commencing before, on, or after the effective date of the act adding this section, but does not apply to any claim or refund that (without regard to this section) is barred by the operation or rule of law, including res judicata, as of the effective date of the act adding this section. (Added by Stats. 2002, Ch. 807, Sec. 15. Effective September 23, 2002.)
  176. 19321.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A refund claim is no longer treated as a refund claim under Section 19306 once action on it is final, except to the extent it was allowed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19321. A refund claim upon which action has become final shall not thereafter be considered a refund claim within the meaning of Section 19306 except to the extent it has been allowed. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  177. 19322.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Refund claims must be in writing, signed, and state the specific grounds. Class refund claims also need written authorization from each included taxpayer and signatures from each taxpayer or their authorized representative.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19322. Every claim for refund shall be in writing, shall be signed by the taxpayer or the taxpayer’s authorized representative, and shall state the specific grounds upon which it is founded. A claim filed for or on behalf of a class of taxpayers shall do all of the following: (a) Be accompanied by written authorization from each taxpayer sought to be included in the class. (b) Be signed by each taxpayer or taxpayer’s authorized representative. (c) State the specific grounds on which the claim is founded. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  178. 19322.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If a refund claim is filed before the full tax is paid, it counts only to toll time limits; for other purposes it is treated as filed on the date full payment is made.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19322.1. (a) A claim for refund that is otherwise valid under Section 19322, but that is made in the case in which payment of the entire tax assessed or asserted has not been made, shall be a claim only for purposes of tolling the time periods set forth in Section 19306. For all other purposes (including the application of Sections 19323, 19324, 19331, 19335, 19384, and 19385) the claim shall be deemed filed on the date that full payment of the tax is made. However, no credit or refund may be made or allowed for any payment made more than seven years before the date that full payment of the tax is made. (b) This section shall apply to all claims for refund filed on or after the effective date of the act adding this section, without regard to taxable year. (Added by Stats. 2001, Ch. 920, Sec. 25. Effective January 1, 2002.)
  179. 19323.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If the Franchise Tax Board disallows a refund claim, it must notify the taxpayer and explain why.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19323. (a) If the Franchise Tax Board disallows any claim for refund, it shall notify the taxpayer accordingly and provide an explanation for the disallowance. (b) The amendments made by the act adding this subdivision shall apply to disallowances after the 180th day after the effective date of the act adding this subdivision. (Amended by Stats. 1999, Ch. 931, Sec. 24. Effective October 10, 1999.)
  180. 19324.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A taxpayer may appeal the Franchise Tax Board’s action in writing within 90 days after the notice is mailed; otherwise the action becomes final, except for the subdivision (b) refund-correction rule.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19324. (a) Except as provided in subdivision (b), at the expiration of 90 days from the mailing of the notice, the Franchise Tax Board’s action upon the claim is final unless within the 90-day period the taxpayer appeals in writing from the action of the Franchise Tax Board to the board. (b) If within the period set forth in Section 19384 for filing a suit for refund the Franchise Tax Board receives information which it determines clearly establishes that a disallowed claim should have been allowed, in whole or in part, the Franchise Tax Board shall credit the amount of the overpayment against any taxes due from the taxpayer under this part and the balance shall be refunded to the taxpayer. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  181. 19325.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    No interest is allowed or paid on a claim for credit or refund when the overpayment results from federal law or treaties that reduce taxes for taxable years before that law’s enactment or treaty approval.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19325. No interest shall be allowed or paid with respect to a claim for credit or refund based upon an overpayment which is the result of federal law, including treaties, which reduces taxes for taxable years prior to the enactment date of the federal law or the approval date of the treaty. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  182. 19331.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If the Franchise Tax Board does not mail notice of action on a refund claim within six months after filing, the taxpayer may treat the claim as disallowed and appeal to the board.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19331. If the Franchise Tax Board fails to mail notice of action on any refund claim within six months after the claim is filed, the taxpayer may prior to mailing of notice of action on the refund claim consider the claim disallowed and appeal to the board. For substitution of the 120-day period for the six-month period contained in this section in a Title 11 case, see Section 505(a)(2) of Title 11 of the United States Code. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  183. 19332.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Appeals must be mailed to the State Board of Equalization in Sacramento, and the board must send copies to the Franchise Tax Board after receiving them.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19332. Two copies of the appeal and two copies of any supporting documents shall be addressed and mailed to the State Board of Equalization at Sacramento, California. Upon receipt of the appeal, the board shall provide one copy of the appeal and one copy of any supporting documents to the Franchise Tax Board at Sacramento, California. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  184. 19333.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The board must hear and decide the appeal, then promptly notify the taxpayer and the Franchise Tax Board of its decision and reasons.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19333. The board shall hear and determine the appeal and thereafter shall forthwith notify the taxpayer and the Franchise Tax Board of its determination and the reasons therefor. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  185. 19334.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The board’s determination becomes final after 30 days, unless a taxpayer or the Franchise Tax Board files a petition for rehearing within that period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19334. The determination of the board is final upon the expiration of 30 days from the date of the determination unless within the 30-day period, the taxpayer or Franchise Tax Board files a petition for rehearing with the board. In that event the determination becomes final upon the expiration of 30 days from the date the board issues its opinion on the petition. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  186. 19335.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If a taxpayer pays the protested tax after filing a protest or appeal, the Franchise Tax Board or the board must treat that protest or appeal as a refund claim or as an appeal from the denial of a refund claim.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19335. If, with or after the filing of a protest or an appeal to the State Board of Equalization pursuant to Article 3 (commencing with Section 19031) of Chapter 4, a taxpayer pays the tax protested before the Franchise Tax Board acts upon the protest, or the board upon the appeal, the Franchise Tax Board or board shall treat the protest or the appeal as a claim for refund or an appeal from the denial of a claim for refund filed under this article. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  187. 19340.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    Interest must be paid on tax overpayments, at the adjusted annual rate set under Section 19521.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19340. Interest shall be allowed and paid on any overpayment in respect of any tax, at the adjusted annual rate established pursuant to Section 19521 as follows: (a) In the case of a credit, from the date of the overpayment to the due date of the amount for which the credit is allowed. Any interest allowed on any credit shall first be credited on any amounts due from the taxpayer under Part 10 (commencing with Section 17001), this part, or Part 11 (commencing with Section 23001). (b) In the case of a refund, including a refund in excess of tax liability as prescribed in subdivision (j) of Section 17053.5, from the date of the overpayment to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the Franchise Tax Board. (Amended by Stats. 1997, Ch. 605, Sec. 36. Effective January 1, 1998.)
  188. 19341.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If a tax overpayment is refunded or credited quickly enough, no interest is allowed; some cases use a 90-day rule and one category uses 45 days.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19341. (a) Except as provided in subdivisions (b), (c), and (d), if any overpayment of tax is refunded or credited within 90 days after the return is filed, or within 90 days after the last day prescribed for filing the return of tax (determined without regard to any extension of time for filing the return), whichever is later, no interest shall be allowed under Section 19340 on the overpayment. For the purposes of this section, “overpayment of tax” includes a refund in excess of tax liability as prescribed in subdivision (j) of Section 17053.5. (b) In the case of returns which set forth no determination or amount of tax liability, or credits other than that allowed under Section 17053.5, and which are filed solely for the purpose of claiming the renter credit, no interest shall be allowed on refunds made within 90 days from the date on which the return is filed, or within 90 days after the last day prescribed for filing the return, whichever is later. This subdivision applies only when communication with the claimant or other verification is necessary to determine entitlement to the claimed credit. (c) In the case of an individual or fiduciary taxable under Part 10 (commencing with Section 17001), for the 1982 taxable year and each taxable year thereafter, the 90-day time periods specified in subdivision (a) shall be 45 days. (d) In the case of a return of tax which is filed after the last date prescribed for filing the return (determined with regard to extensions), no interest shall be allowed or paid for any day before the date on which the return is filed. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  189. 19342.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    If the Franchise Tax Board disallows interest on a refund claim, it must notify the taxpayer.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19342. If the Franchise Tax Board disallows interest on any claim for refund, it shall notify the taxpayer accordingly. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  190. 19343.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The Franchise Tax Board’s disallowance of interest becomes final 90 days after mailing of the notice in Section 19342 unless the taxpayer appeals in writing to the board within that 90-day period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19343. At the expiration of 90 days from the mailing of the notice specified in Section 19342, the Franchise Tax Board’s action upon the disallowance of the interest shall be final unless within the 90-day period, the taxpayer appeals in writing from the action of the Franchise Tax Board to the board. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  191. 19344.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    An appeal and supporting documents must be mailed in duplicate to the State Board of Equalization, and the board must send one copy to the Franchise Tax Board after receiving the appeal.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19344. Two copies of the appeal and two copies of any supporting documents shall be addressed and mailed to the State Board of Equalization at Sacramento, California. Upon receipt of the appeal, the board shall provide one copy of the appeal and one copy of any supporting documents to the Franchise Tax Board at Sacramento, California. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  192. 19345.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    The board must hear and decide the matter, then promptly notify the taxpayer and the Franchise Tax Board of its decision and reasons.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19345. The board shall hear and determine the same and thereafter shall forthwith notify the taxpayer and the Franchise Tax Board of its determination and the reasons therefor. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  193. 19346.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A determination becomes final 30 days after its date unless a petition for rehearing is filed within that period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19346. The determination is final upon the expiration of 30 days from the date of the determination unless within the 30-day period, the taxpayer or Franchise Tax Board files a petition for rehearing with the board. In that event the determination becomes final upon the expiration of 30 days from the date the board issues its opinion upon the petition. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  194. 19347.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

    Verify source ↗

    A taxpayer may sue the Franchise Tax Board for recovery of interest, but only within 90 days after the relevant notice or final appeal determination.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19347. Within 90 days after the mailing of the notice of the Franchise Tax Board’s action disallowing interest upon any refund claim, or, in the case of an appeal to the board from the disallowance of interest on any refund claim, within the 90 days after the board’s determination (including the issuance of a decision, opinion, or dismissal) of the appeal becomes final pursuant to Section 19346, the taxpayer may bring an action against the Franchise Tax Board on the grounds set forth for interest in the claim for the recovery of the interest. (Amended by Stats. 1999, Ch. 605, Sec. 2. Effective January 1, 2000.)
  195. 19348.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If the Franchise Tax Board does not mail a disallowance notice for interest on a refund claim within six months after the interest is claimed, the taxpayer may treat the interest as disallowed and sue the Franchise Tax Board.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19348. If the Franchise Tax Board fails to mail notice of action of disallowance of interest on any refund claim within six months after the interest was claimed, the taxpayer may, prior to mailing notice of action of disallowance of interest on the refund claim, consider the interest disallowed and bring an action against the Franchise Tax Board on the grounds set forth for interest in the claim for the recovery of the interest. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  196. 19349.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    A payment that is not made to satisfy an actual or reasonably assumed legal liability is not treated as an overpayment, and no interest is payable on it.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19349. A payment not made incident to a bona fide and orderly discharge of an actual liability or one reasonably assumed to be imposed by law, is not an overpayment for the purposes of Section 19340 and interest is not payable thereon. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  197. 19350.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Interest is not allowed on a barred overpayment refund or credit claim for a specified period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19350. If a credit or refund of any part of an overpayment would be barred under Section 19306, except for Section 19312, no interest shall be allowed or paid with respect to that part of the overpayment for any period beginning after the expiration of the period of limitation provided in Section 19306 for filing claim for credit or refund of that part of the overpayment and ending at the expiration of six months after the date on which the claim was filed or, in case no claim was filed and the overpayment was found by the board, ending at the time the appeal was filed with the board. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  198. 19351.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Section 19066 applies when determining the date of payment for certain refund-related sections.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19351. The provisions of Section 19066, which are applicable in determining the period of limitation on credit or refund, shall be applicable in determining the date of payment for purposes of Sections 19340, 19341, 19363, and 19391. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  199. 19354.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    If allowable tax credits exceed the tax imposed, the excess is treated as an overpayment.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19354. If the amount allowable as a credit under Section 19002 (relating to credit for tax withheld) and the amount, if any, allowable as a refundable tax credit (including the Child and Dependent Care Credit allowable under Section 17052.6) exceeds the tax imposed by Part 10 (commencing with Section 17001), against which the credits are allowable, the amount of the excess shall be considered an overpayment. (Amended by Stats. 2002, Ch. 374, Sec. 7. Effective January 1, 2003.)
  200. 19355.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. )

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    Refunding certain excess withholding or estimated tax does not count as a determination that the taxpayer’s return is correct.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS [18401 - 19802] ( Part 10.2 added by Stats. 1993, Ch. 31, Sec. 26. ) ## CHAPTER 6. Overpayments and Refunds [19301 - 19443] ( Chapter 6 added by Stats. 1993, Ch. 31, Sec. 26. ) ## ARTICLE 1. Claim for Refund [19301 - 19368] ( Article 1 added by Stats. 1993, Ch. 31, Sec. 26. ) ## 19355. Any action of the Franchise Tax Board in refunding the excess of tax withheld under Section 18662 or 18666 or estimated tax paid pursuant to Section 19136 or any action of the Employment Development Department in refunding to the employer the excess tax withheld under Section 13020 of the Unemployment Insurance Code shall not constitute a determination of the correctness of the return of the taxpayer for purposes of this part. (Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)

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