Bill Text: CA SB1251 | 2009-2010 | Regular Session | Introduced

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Bill Title: Income taxes: tax amnesty programs: penalties.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-03-04 - To Com. on RLS. [SB1251 Detail]

Download: California-2009-SB1251-Introduced.html

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BILL NUMBER: SB 1251	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Runner

                        FEBRUARY 19, 2010

   An act to amend Section 19777.5 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1251, as introduced, Runner. Income taxes: tax amnesty
programs: penalties.
   Existing law requires the Franchise Tax Board to administer tax
amnesty programs during the period beginning February 1, 2005, and
ending on March 31, 2005, inclusive, or during any other 2-month
period ending before June 30, 2005, as provided. Under existing tax
law, certain taxpayers are subject to a 50% amnesty penalty, which is
an amount equal to 50% of the accrued underpayment interest payable
for a specified period, if they have a balance due either on or after
March 31, 2005, as provided.
   This bill would make technical, nonsubstantive changes to that
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 19777.5 of the Revenue and Taxation Code is
amended to read:
   19777.5.  (a) There shall be added to the tax for each taxable
year for which amnesty could have been requested:
   (1) For amounts that are due and payable on the last day of the
amnesty period, an amount equal to 50 percent of the accrued interest
payable under Section 19101 for the period beginning on the last
date prescribed by law for the payment of that tax (determined
without regard to extensions) and ending on the last day of the
amnesty period specified in Section 19731.
   (2) For amounts that become due and payable after the last date of
the amnesty period, an amount equal to 50 percent of the interest
computed under Section 19101 on any final amount, including final
deficiencies and self-assessed amounts, for the period beginning on
the last date prescribed by law for the payment of the tax for the
year of the deficiency (determined without regard to extensions) and
ending on the last day of the amnesty period specified in Section
19731.
   (3) For purposes of paragraph (2), Sections 19107, 19108, 19110,
and 19113 shall apply in determining the amount computed under
Section 19101.
   (b) The penalty imposed by this section is in addition to any
other penalty imposed under Part 10 (commencing with Section 17001),
Part 11 (commencing with Section 23001), or this part.
   (c) This section does not apply to any amounts that are treated as
paid during the amnesty program period under paragraph (4) of
subdivision (a) of Section 19733 or paragraph (1) of subdivision (b)
of Section 19733.
   (d) Article 3 (commencing with Section 19031),  (relating
  relating  to deficiency  assessments)
  assessments,  shall not apply with respect to the
assessment or collection of any penalty imposed by subdivision (a).
   (e) (1) Notwithstanding Chapter 6 (commencing with Section 19301),
a taxpayer may not file a claim for refund or credit for any amounts
paid in connection with the penalty imposed in subdivision (a),
except as provided in paragraph (2).
   (2) A taxpayer may file a claim for refund for any amounts paid to
satisfy a penalty imposed under subdivision (a) on the grounds that
the amount of the penalty was not properly computed by the Franchise
Tax Board.
   (f) Notwithstanding Section 18415, the amendments made to this
section by the act adding this subdivision shall apply to penalties
imposed under paragraph (2) of subdivision (a) after March 31, 2005.