Bill Text: CA SB1496 | 2021-2022 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Taxation: tax, fee, and surcharge administration: insurance tax rates.
Spectrum: Committee Bill
Status: (Passed) 2022-09-22 - Chaptered by Secretary of State. Chapter 474, Statutes of 2022. [SB1496 Detail]
Download: California-2021-SB1496-Introduced.html
board department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 6459, 6480.4, 6480.8, 6513, 6591, and 6592.5. board department may by notice of levy, served personally or personally, by first-class mail, or by electronic transmission or other electronic technology, require all persons having in their possession, or under their control, any credits or
other personal property belonging to a retailer or other person liable for any amount under this part to withhold from such credits or other personal property the amount of any tax, interest, or penalties due from such retailer or other person, or the amount of any liability incurred by them under this part, and to transmit the amount withheld to the board department at such times as it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution. board department determines that any amount, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board department shall set forth that fact in the records of the board
department and shall certify the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid. The excess amount collected or paid shall be credited by the board department on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or her the person’s successors, administrators, or executors, if a determination by the board
department is made in any of the following cases: board department, the board department shall set forth that fact in its records, certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the board.
department. Any proposed determination by the board department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination.(1)Beginning January 1, 2003, the executive director and chief counsel of the board department, or their delegates, may compromise any final tax liability in which the reduction of tax is seven thousand five hundred dollars ($7,500) or less.
liability.(1)The executive director and chief counsel of the board, department, or their delegates, may compromise any final tax liability in which the reduction of tax is seven thousand five hundred dollars ($7,500) or less.
liability. board department shall mail to the taxpayer a preliminary notice. The notice shall specify the statutory authority of the board department for filing or recording the lien, indicate the earliest date on
which the lien may be filed or recorded, and state the remedies available to the taxpayer to prevent the filing or recording of the lien. In the event tax liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent. board department finds that a person’s failure to make a timely report, return, or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 7655, 7659.5, 7659.6, 7659.9 7660, 7705, and 7713. board department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 7655, 7656, 7659.9, 7661, and 7706. Any board department determines that any amount not required to be paid under this part has been paid by any person to the state, the board department shall set forth that fact in its records and certify the amount collected in excess of the amount legally due and the person from whom it was collected and certify the amount to the Controller for credit or refund. Any proposed
determination by the board
department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination. board department determines that any amount has been illegally determined to be due from any person either by the person filing the return or by the board, department, the board department shall set forth that fact in its records, certify
the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the board department and the Controller. Any proposed determination by the board department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to
after
the effective date of that determination. board department finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 8760, 8801, 8854, and 8876. board department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 8754, 8760, 8803, and 8876. board department may by notice of levy, served personally or personally, by first-class mail, or by electronic transmission or other electronic technology, require all persons having in their possession, or under their control, any payments,
credits other than payments, or other personal property belonging to a user, vendor, or other person liable for any amount under this part to withhold from those credits or other personal property the amount of any tax, interest, or penalties due from that user, vendor, or other person, or the amount of any liability incurred by them under this part, and to transmit the amount withheld to the board department at those times as it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b). board department determines that any amount not required to be paid under this part has been paid by any person, the board department shall set forth that fact in its records and certify the amount paid in excess of the amount legally due and the person by whom the excess was paid to the board
department or from whom it was collected. The excess amount paid or collected shall be credited on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall either be refunded to the person, or his or her the person’s successors, administrators, executors, or assigns, or, if authorized by the board department, deducted by the person from any amounts to become due from him or her
that person under this part. board, department, the board department shall set forth that fact in its records, certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the board.
department. Any proposed determination by the board department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination. board department shall mail to the taxpayer a preliminary notice. The notice shall specify the statutory authority of the board department for filing or recording the lien, indicate the earliest date on
which the lien may be filed or recorded, and state the remedies available to the taxpayer to prevent the filing or recording of the lien. In the event tax liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent.(1)Beginning January 1, 2003, the executive director and chief counsel of the board, department, or their delegates, may compromise any final tax liability in which the reduction of tax is seven thousand five hundred dollars ($7,500) or less.
liability.(1)The executive director and chief counsel of the board, department, or their delegates, may compromise any final tax liability in which the reduction of tax is seven thousand five hundred dollars ($7,500) or less.
liability.19559. board department finds that a person’s failure to make a timely report or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, the person may be relieved of the penalty provided by Sections 30171, 30190, 30221, 30264, and 30281. board department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 30171, 30185, 30190, 30223, and 30281. board department may, by notice of levy levy, served personally or personally, by first-class mail, or by electronic transmission or
other electronic technology, require all persons having in their possession, or under their control, any payments, credits other than payments, or other personal property belonging to a distributor, dealer, or other person liable for any amount under this part to withhold from these credits or other personal property the amount of any tax, interest, or penalties due from the distributor, dealer, or other person, or the amount of any liability incurred by them under this part, and to transmit the amount withheld to the board department at the time it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b). board department determines that any amount not required to be paid under this part has been paid by any person, the board department shall set forth that fact in its records and certify the amount collected in excess of the amount legally due and the person from whom it was collected or by whom it was paid. The excess amount collected or paid shall be credited by the board
department on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or her the person’s successors, administrators, or executors. Any proposed determination by the board department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to
after the effective date of that determination. board department shall set forth that fact in its records, certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the board. department. Any proposed determination by
the board
department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination.(1)Beginning on January 1, 2007, the executive director and chief counsel of the board, department, or their delegates, may compromise any final tax liability where the reduction of tax is seven thousand five hundred dollars ($7,500) or less.
liability.(1)The executive director and chief counsel of the board, department, or their delegates, may compromise any final tax liability where the reduction of tax is seven thousand five hundred dollars ($7,500) or less.
liability. board department shall mail to the taxpayer a preliminary notice. The notice shall specify the statutory authority of the board department for filing or recording the lien, indicate the earliest date on
which the lien may be filed or recorded, and state the remedies available to the taxpayer to prevent the filing or recording of the lien. In the event tax liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent. board department finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 38421 and 38451. board department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 38405, 38423, and 38451. board department may, by notice of levy, served personally or personally, by first-class mail, or by electronic transmission or other electronic technology, require all persons having in their possession, or under their control, any credits or
other personal property belonging to a timber owner liable for any amount under this part to withhold from those credits or other personal property the amount of any tax, interest, or penalties due from that timber owner, or the amount of any liability incurred by him or her the timber owner under this part, and to transmit the amount withheld to the board department at those times as it may designate. board department determines that any amount, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board department shall set forth that fact in the records of the board, department,
certify the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid, and credit the excess amount collected or paid on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or her the person’s successors, administrators, or executors. Any proposed determination by the board department pursuant to this section with respect to an amount in excess of
fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after
the effective date of that determination. board, department, the board department shall set forth that fact in its records, certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the board.
department. Any proposed determination by the board department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination. board department finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 40067, 40081, 40096, and 40101. board department finds that a person’s failure to make a timely report or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 40065, 40067, 40083, and 40101. board department determines that any amount, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board department shall set forth that fact in the records of the board,
department,
certify the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid, and shall credit the excess amount collected or paid on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or her the person’s successors, administrators, or executors. Any proposed determination by the board department pursuant to this section with respect to an amount in excess
of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after
the effective date of that determination. board, department, the board department shall set forth that fact in its records, certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the board.
department. Any proposed determination by the board department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination. board department may, by notice of levy levy, served personally or personally, by first-class mail, or by first-class mail, or by
electronic transmission or other electronic technology, require all persons having in their possession, or under their control, any payments, credits other than payments, or other personal property belonging to a consumer or other person liable for any amount under this part to withhold from these credits or other personal property the amount of any surcharge, interest, or penalties due from the consumer or other person, or the amount of any liability incurred by them under this part, and to transmit the amount withheld to the board department at the time it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b). board department shall mail to the taxpayer a preliminary notice. The notice shall specify the statutory authority of the board department for filing or recording the lien, indicate the earliest date on
which the lien may be filed or recorded, and state the remedies available to the taxpayer to prevent the filing or recording of the lien. In the event tax liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent. proposed
determination by the department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination. proposed determination by the department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after
the effective date of that determination. levy levy, served personally or personally, by first-class mail, or by electronic transmission or other electronic technology, require all persons, other than a service supplier, having in their possession, or under their control, any payments, credits other than payments, or other personal property belonging
to a service user or other person liable for any amount under this part to withhold from these credits or other personal property the amount of any surcharge, interest, or penalties due from the service user or other person, or the amount of any liability incurred by them under this part, and to transmit the amount withheld to the department at the time it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b).(1)Beginning on January 1, 2007, the executive director and chief counsel of the board, department, or their delegates, may compromise any final surcharge liability where the reduction of surcharges is seven thousand five hundred dollars ($7,500) or less.
liability.(1)The executive director and chief counsel of the board, department, or their delegates, may compromise any final surcharge liability where the reduction of surcharges is seven thousand five hundred dollars ($7,500) or less.
liability. board California Department of Tax and Fee Administration finds that a person’s failure to make a timely return, prepayment, or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 43155, 43170, and 43306. board California Department of Tax and Fee Administration finds that a person’s failure to make a timely return or payment was due to disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of interest provided for by Sections 43154, 43155, 43170, and 43201. Any board California Department of Tax and Fee Administration may, by notice of levy levy, served personally or personally, by first-class mail,
or by electronic transmission or other electronic technology, require all persons having in their possession, or under their control, any payments, credits other than payments, or other personal property belonging to a taxpayer or other person liable for any amount under this part to withhold from these credits or other personal property the amount of any tax, interest, or penalties due from the taxpayer or other person, or the amount of any liability incurred by them under this part, and to transmit the amount withheld to the board California Department of Tax and Fee Administration at the time it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b). board California Department of Tax and Fee Administration determines that any amount of tax, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board California Department of Tax and Fee Administration shall set forth that fact in the records of the board,
California Department of Tax and Fee Administration, certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom paid, and credit the excess amount collected or paid on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or her the person’s successors, administrators, or executors. Any proposed determination by the board California Department of Tax and Fee
Administration pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to
after the effective date of that determination. board, California Department of Tax and Fee Administration, the board California Department of Tax and Fee Administration shall certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the board.
California Department of Tax and Fee Administration. Any proposed determination by the board California Department of Tax and Fee Administration pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination. board California Department of Tax and Fee Administration shall mail to the taxpayer a preliminary notice. The notice shall specify the statutory authority of the board California Department of Tax and Fee Administration
for filing or recording the lien, indicate the earliest date on which the lien may be filed or recorded, and state the remedies available to the taxpayer to prevent the filing or recording of the lien. In the event tax liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent. board department finds that a person’s failure to make a timely report or return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 45153, 45160, and 45306. board department finds that a person’s failure to make a timely return or payment was due to disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of interest provided for by Sections 45152, 45153, 45160, and 45201. Any board department may, by notice of levy levy, served personally or personally, by first-class mail, or by electronic transmission or
other electronic technology, require all persons having in their possession, or under their control, any payments, credits other than payments, or other personal property belonging to a feepayer or other person liable for any amount under this part to withhold from these credits or other personal property the amount of any fee, interest, or penalties due from the feepayer or other person, or the amount of any liability incurred under this part, and to transmit the amount withheld to the board department at the time it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b). board department determines that any amount of fee, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board department shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom paid, and credit the excess amount collected or paid on any amounts then due from the
person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or
her the person’s successors, administrators, or executors. Any proposed determination by the board department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination. board, department, the board department shall certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the board.
department. Any proposed determination by the board department pursuant to this section with respect to an amount in excess of fifteen fifty thousand dollars ($15,000) ($50,000) shall be available as a public record for at least 10 days prior to
after
the effective date of that determination. board department shall mail to the fee payer a preliminary notice. The notice shall specify the statutory authority of the board department for filing or recording the lien, indicate the earliest date on
which the lien may be filed or recorded, and state the remedies available to the fee payer to prevent the filing or recording of the lien. In the event fee liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent. board department finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 46154, 46154.1, 46160, 46251, and 46356. board department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 46153, 46154, 46160, and 46253. board department may, by notice of levy levy, served personally or personally, by first-class mail, or by electronic transmission or
other electronic technology, require all persons having in their possession, or under their control, any payments, credits other than payments, or other personal property belonging to a feepayer or other person liable for any amount under this part to withhold from those credits or other personal property the amount of any fee, interest, or penalties due from that feepayer or other person, or the amount of any liability incurred by them under this part, and to transmit the amount withheld to the board department at the time it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b). board department determines that any amount of fee, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board department shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom paid. The excess amount collected or paid shall be credited
on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or her the person’s successors, administrators, or executors. board, department, the board department shall certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made and authorize the cancellation of the amount upon the records of the board.
department. board department shall mail to the fee payer a preliminary notice of lien. The notice shall specify the board’s department’s statutory authority for filing or recording the lien, the earliest
date on which the lien may be filed or recorded, and the remedies available to the fee payer to prevent the filing or recording of the lien. In the event liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent.(1)Beginning on January 1, 2007, the executive director and chief counsel of the board, department, or their delegates, may compromise any final fee liability where the reduction of fees is seven thousand five hundred dollars ($7,500) or less.
liability.(1)The executive director and chief counsel of the board, department, or their delegates, may compromise any final fee liability where the reduction of fees is seven thousand five hundred dollars ($7,500) or less.
liability. board department finds that a person’s failure to make a timely report or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalties provided by Sections 50112, 50112.7, and 50119. board department finds that a person’s failure to make a timely report or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 50111, 50112, and 50112.7. board department may, by notice of levy levy, served personally or personally, by first-class mail, or by electronic transmission or
other electronic technology, require all persons having in their possession, or under their control, any payments, credits other than payments, or other personal property belonging to a feepayer or other person liable for any amount under this part to withhold from these credits or other personal property the amount of any fee, interest, or penalties due from the feepayer or other person, or the amount of any liability incurred under this part, and to transmit the amount withheld to the board department at the time it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b). board department determines that any amount of fee, interest, or penalty has been paid more than once or has been erroneously or illegally collected or computed, the board department shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom it was paid. The excess amount collected or paid shall be
credited on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or the person’s successors, administrators, or executors. board department shall certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made and authorize the cancellation of the amount upon the records of the board. department. board department shall mail to the fee payer a preliminary notice. The notice shall specify the statutory authority of the board department for filing or recording the lien, indicate the earliest date
on which the lien may be filed or recorded, and state the remedies available to the fee payer to prevent the filing or recording of the lien. In the event fee liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent.(1)Beginning January 1, 2003, the executive director and chief counsel of the board, department, or their delegates, may compromise any final fee liability in which the reduction of the fee is seven thousand five hundred dollars ($7,500) or less.
liability.(1)The executive director and chief counsel of the board, department, or their delegates, may compromise any final fee liability in which the reduction of the fee is seven thousand five hundred dollars ($7,500) or less.
liability. board department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of interest provided by Sections 55041, 55042, 55050, and 55061. board department may, by notice of levy, served personally or personally, by first-class mail, or by electronic transmission or other electronic technology, require all persons having in their possession, or under their control, any payments, credits other than payments, or other personal property
belonging to the feepayer or other person liable for any amount under this part to withhold from these credits or other personal property the amount of the fee, interest, or penalties due from the feepayer or other person, or the amount of any liability incurred under this part, and to transmit the amount withheld to the board department at the time it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b). board department determines that any amount of the fee, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the board department shall set forth that fact in its records and certify the amount collected in excess of what was legally due and the person from whom it was collected or by whom paid. The excess amount collected or paid shall be
credited on any amounts then due from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or his or her the person’s successors, administrators, or executors. board, department, the board department shall certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made and authorize the cancellation of the amount upon the records of the board.
department.(1)Beginning on January 1, 2007, the executive director and chief counsel of the board, department, or their delegates, may compromise any final fee liability where the reduction of fees is seven thousand five hundred dollars ($7,500) or less.
liability.(1)The executive director and chief counsel of the board, department, or their delegates, may compromise any final fee liability where the reduction of fees is seven thousand five hundred dollars ($7,500) or less.
liability. board department shall mail to the taxpayer a preliminary notice. The notice shall specify the statutory authority of the board department for filing or recording the lien, indicate the earliest date on
which the lien may be filed or recorded, and state the remedies available to the taxpayer to prevent the filing or recording of the lien. In the event tax liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent. board department finds that a person’s failure to make a timely report, return, or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 60207, 60250, 60301, 60338, and 60355. board department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 60207, 60208, 60250, 60302, and 60339. board department may by notice of levy, served personally or personally, by first-class mail, or by electronic transmission or other electronic technology,
require all persons having in their possession, or under their control, any payments, credits other than payments, or other personal property belonging to a person liable for any amount under this part to withhold from those credits or other personal property the amount of any tax, interest, or penalties due from that person, or the amount of any liability incurred by him or
her the person under this part, and to transmit the amount withheld to the board department at those times as it may designate. The notice of levy shall have the same effect as a levy pursuant to a writ of execution except for the continuing effect of the levy, as provided in subdivision (b). board department determines that any amount not required to be paid under this part has been paid by any person to the state, the board department shall set forth that fact in its records and certify the amount paid in excess of the amount legally due and the person by whom the excess was paid to the board
department or from whom it was collected. The excess amount paid or collected shall be credited on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall either be refunded to the person, or his or her the person’s successors, administrators, executors, or assigns, or, if authorized by the board, department, deducted by the person from any amounts to become due from him or her
the person under this part. board, department, the board department shall set forth that fact in its records and certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made. board department shall mail to the taxpayer a preliminary notice. The notice shall specify the statutory authority of the board department for filing or recording the lien, indicate the earliest date on
which the lien may be filed or recorded, and state the remedies available to the taxpayer to prevent the filing or recording of the lien. In the event the tax liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent.(1)Beginning on January 1, 2007, the executive director and chief counsel of the board, department, or their delegates, may compromise any final tax liability where the reduction of tax is seven thousand five hundred dollars ($7,500) or less.
liability.(1)The executive director and chief counsel of the board, department, or their delegates, may compromise any final tax liability where the reduction of tax is seven thousand five hundred dollars ($7,500) or less.
liability.
Bill Title: Taxation: tax, fee, and surcharge administration: insurance tax rates.
Spectrum: Committee Bill
Status: (Passed) 2022-09-22 - Chaptered by Secretary of State. Chapter 474, Statutes of 2022. [SB1496 Detail]
Download: California-2021-SB1496-Introduced.html
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 1496
| Introduced by Committee on Governance and Finance (Senators Caballero (Chair), Durazo, Hertzberg, Nielsen, and Wiener) |
March 16, 2022 |
An act to amend Sections 6592, 6593, 6703, 6901, 6981, 7093.6, 7097, 7657, 7658, 8126, 8191, 8877, 8878, 8957, 9151, 9196, 9275, 9278, 30282, 30283, 30315, 30361, 30421, 30459.15, 30459.5, 38452, 38453, 38503, 38601, 38631, 40102, 40103, 40111, 40121, 40155, 40215, 41095, 41096, 41097, 41100, 41107, 41123.5, 41171.5, 41175, 43157, 43158, 43444.2, 43451, 43491, 43526, 45155, 45156, 45605, 45651, 45801, 45871, 46156, 46157, 46406, 46501, 46551, 46626, 46628, 50112.2, 50112.3, 50136, 50139, 50151, 50156.15, 50156.18, 55044, 55046.5, 55205, 55221, 55281, 55332.5, 55336, 60209, 60211, 60407, 60521, 60581, 60633.2, and 60637 of, to add Sections 6459.5, 7656.5, 8754.5, 19573, 30185.5, 38405.5, 40065.5, 41054.5, 43154.5, 45152.5, 46153.5, 50111.5, 55041.5, and 60208.5 to, and to repeal Section 19559 of, the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1496, as introduced, Committee on Governance and Finance.
California Department of Tax and Fee Administration: tax, fee, and surcharge administration.
(1) The California Department of Tax and Fee Administration administers various taxes, fees, and surcharges, including, among others, the Sales and Use Tax Law, the Motor Vehicle Fuel Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Timber Yield Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Act, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Diesel Fuel Tax Law, and various taxes and fees collected in accordance with the Fee Collections Procedures Law.
Existing law, the California Emergency Services Act, authorizes the Governor to proclaim a state of emergency when specified conditions of disaster or extreme peril
to the safety of persons and property exist, and authorizes the Governor to exercise certain powers in response to that emergency, including, but not limited to, suspending specified statutes, ordinances, orders, regulations, or rules.
This bill would authorize the department, if the Governor issues a state of emergency proclamation, to extend the time, for a period not to exceed 3 months, for making any report or return or paying any tax, fee, or surcharge, as applicable, required under the laws administered by the department specified above for any person in an area identified in the state of emergency proclamation. The bill would additionally authorize the department to grant relief from specified penalties and interest under those laws during the period the state of emergency proclamation is effective.
(2) Existing law, for purposes of the laws administered by the department described above,
requires the department to refund the excess balance of a tax, fee, or surcharge, penalty, or interest that has been paid more than once or has been erroneously or illegally collected or computed, if the department makes a specified determination. Under those laws, if the amount is in excess of $50,000, or $15,000 for specified amounts under the Integrated Waste Management Fee Law, the department is required to make the determination public record 10 days prior to the effective date of the determination.
This bill would instead require the department to make the determination public record 10 days after the effective date of the determination. The bill, for purposes of the Integrated Waste Management Fee Law, would increase the amount for which the department is required to make the determination public record from $15,000 to $50,000.
(3) The Sales and Use Tax Law, the Use Fuel Tax Law, the Cigarette
and Tobacco Products Tax Law, the Timber Yield Tax Law, the Emergency Telephone Users Surcharge Act, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Diesel Fuel Tax Law, and various taxes and fees collected in accordance with the Fee Collections Procedures Law authorize the department to require persons, by notice of levy, to withhold credits or personal property belonging to a retailer or other person liable for taxes, fees, or surcharges, or penalties or interest, under those laws. Existing law authorizes the department to serve the notices of levy personally or by first-class mail.
This bill would additionally authorize the department to serve a notice of levy by electronic transmission or other electronic technology.
(4) The Sales and Use Tax Law, the
Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Emergency Telephone Users Surcharge Act, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Diesel Fuel Tax Law, and various taxes and fees collected in accordance with the Fee Collections Procedures Law, until January 1, 2023, authorize the director of the department to compromise on a final tax, surcharge, or fee liability, as applicable, where the reduction of the tax, surcharge, or fee is $7,500 or less, as provided, regardless of whether the liabilities are generated from a business that has been discontinued or transferred or where the taxpayer or feepayer no longer has a controlling interest or association with a similar business as the transferred or discontinued business. After January 1, 2023, those laws authorize the director to accept an offer in compromise on a final tax, surcharge, or fee liability only if the business has been discontinued or transferred or
whether the taxpayer or feepayer has a controlling interest or association with a similar business as the transferred or discontinued business. Under these laws, a taxpayer or feepayer is guilty of a felony if the taxpayer or feepayer conceals specified property or receives, withholds, destroys, mutilates, or falsifies specified items or makes a false statement related to the offer in compromise, as specified.
This bill would instead authorize the director to compromise all final tax, surcharge, or fee liability, as applicable, regardless of the amount. The bill would extend the repeal date for the above provisions regarding an offer in compromise for a final tax, surcharge, or fee liability regardless of whether the business has been discontinued or transferred or whether the taxpayer or feepayer has a controlling interest or association, as specified, to January 1, 2028. The bill, by extending the repeal date, would expand the scope of an
existing crime, thereby imposing a state-mandated local program.
(5) The Sales and Use Tax Law, the Use Fuel Tax Law, the Cigarette and Tobacco Products Tax Law, the Energy Resources Surcharge Law, the Emergency Telephone Users Surcharge Act, the Hazardous Substances Tax Law, the Integrated Waste Management Fee Law, the Oil Spill Response, Prevention, and Administration Fees Law, the Underground Storage Tank Maintenance Fee Law, the Diesel Fuel Tax Law, and various taxes and fees collected in accordance with the Fee Collections Procedures Law authorize the department to release or subordinate a lien if the department makes specified determinations, including that the release or subordination will be in the best interest of the state and the taxpayer.
This bill would additionally authorize the department to release or subordinate a lien if the department determines that the release
or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(6) This bill would also make various technical changes to each of these laws by updating references to the State Board of Equalization to instead refer to the department.
(7) Existing law authorized the Franchise Tax Board, prior to December 31, 2005, to disclose returns and return information to federal agencies, as provided.
This bill would repeal that provision.
(8) Existing law authorizes the State Department of Social Services and the Franchise Tax Board to exchange data related to the California Earned Income Tax Credit upon request, as provided.
This bill would codify these provisions.
(9) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(10) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6459.5 is added to the Revenue and Taxation Code, to read:6459.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 2.
Section 6592 of the Revenue and Taxation Code is amended to read:6592.
(a) (1) If the department finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person shall be relieved of the penalties provided by Sections 6452.05, 6476, 6477, 6479.3, 6480.4, 6511, 6565, 6591, 7051.2, 7073, and 7074.(2) If the department finds, with respect to the information return required by Section 6452.05, that a person’s failure to accurately disclose information is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person shall be
relieved of the relevant penalty provided by Section 6591.3.
(b) Except as provided in subdivision (c), subdivisions (c) and (d), a person seeking to be relieved of the penalty shall file with the department a statement under penalty of perjury setting forth the facts upon which the person bases the claim for relief.
(c) The department may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to
subdivision (b).
(c)
(d) The department shall establish criteria that provides for efficient resolution of requests for relief pursuant to this section.
SEC. 3.
Section 6593 of the Revenue and Taxation Code is amended to read:6593.
(a) If theAny
(b) Except as provided in subdivision (c), a person seeking to be relieved of the interest shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she that person bases his or her
the claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 4.
Section 6703 of the Revenue and Taxation Code is amended to read:6703.
(a) Subject to the limitations in subdivisions (b) and (c), the(b) The person served shall continue to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever
occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The amount of each payment due or becoming due to the retailer or other person liable during the period of the levy.
(d) For the purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for services of independent contractors, dividends, rents, royalties, residuals,
patent rights, mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the retailer or other person liable for the tax.
(3) Any other payments or credits due or becoming due the retailer or other person liable as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the taxpayer and shall be delivered or mailed delivered, mailed, or served by electronic transmission or other electronic technology
to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 5.
Section 6901 of the Revenue and Taxation Code is amended to read:6901.
(a) If the(a)
(1) Any amount of tax, interest, or penalty was not required to be paid.
(b)
(2) Any amount of prepayment of sales tax, interest, or penalty paid pursuant to Article 1.5 (commencing with Section 6480) of Chapter 5 was not required to be paid.
(c)
(3) Any amount that is approved as a settlement pursuant to Section 7093.5.
Any
(b) Any overpayment of the use tax by a purchaser to a retailer who is required to collect the tax and who gives the purchaser a receipt therefor pursuant to Article 1 (commencing with Section 6201) of Chapter 3 shall be credited or refunded by the state to the purchaser. Any proposed
determination by the board department
pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination.
SEC. 6.
Section 6981 of the Revenue and Taxation Code is amended to read:6981.
If any amount has been illegally determined either by the person filing the return or by theSEC. 7.
Section 7093.6 of the Revenue and Taxation Code, as amended by Section 1 of Chapter 272 of the Statutes of 2017, is amended to read:7093.6.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation
by its executive director and chief counsel, jointly, may compromise a final tax liability involving a reduction in tax in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final tax liability in which the reduction of tax is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final tax liability” means any final tax liability arising under Part 1 (commencing with Section 6001), Part 1.5
(commencing with Section 7200), Part 1.6 (commencing with Section 7251), and Part 1.7 (commencing with Section 7280) or related interest, additions to tax, penalties, or other amounts assessed under this part.
(c) (1) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the taxpayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(2) Notwithstanding paragraph (1), a qualified final tax liability may be compromised regardless of whether the business has been discontinued or transferred or whether the taxpayer has a controlling interest or association with a similar type of business as the
transferred or discontinued business. All other provisions of this section that apply to a final tax liability shall also apply to a qualified final tax liability, and a compromise shall not be made under this subdivision unless all other requirements of this section are met. For purposes of this subdivision, a “qualified final tax liability” means any of the following:
(A) That part of a final tax liability, including related interest, additions to tax, penalties, or other amounts assessed under this part, arising from a transaction or transactions in which the board department finds no evidence that the taxpayer collected sales tax reimbursement or use tax from the purchaser or other person and which was determined against the taxpayer under Article 2
(commencing with Section 6481), Article 3 (commencing with Section 6511), and Article 5 (commencing with Section 6561) of Chapter 5.
(B) A final tax liability, including related interest, additions to tax, penalties, or other amounts assessed under this part, arising under Article 7 (commencing with Section 6811) of Chapter 6.
(C) That part of a final tax liability for use tax, including related interest, additions to tax, penalties, or other amounts assessed under this part, determined under Article 2 (commencing with Section 6481), Article 3 (commencing with Section 6511), and Article 5 (commencing with Section 6561) of Chapter 5, against a taxpayer who is a consumer that is not required to hold a permit under Section 6066.
(3) A qualified final tax liability may not be compromised with any of the following:
(A) A taxpayer who previously received a compromise under paragraph (2) for a liability, or a part thereof, arising from a transaction or transactions that are substantially similar to the transaction or transactions attributable to the liability for which the taxpayer is making the offer.
(B) A business that was transferred by a taxpayer who previously received a compromise under paragraph (2) and who has a controlling interest or association with the transferred business, when the liability for which the offer is made is attributable to a transaction or transactions substantially similar to the transaction or transactions for which the taxpayer’s liability was previously compromised.
(C) A business in which a taxpayer who previously received a compromise under paragraph (2) has a controlling interest or association
with a similar type of business for which the taxpayer received the compromise, when the liability of the business making the offer arose from a transaction or transactions substantially similar to the transaction or transactions for which the taxpayer’s liability was previously compromised.
(d) The board
department may, in its discretion, enter into a written agreement that permits the taxpayer to pay the compromise in installments for a period not exceeding one year. The agreement may provide that the installments shall be paid by electronic funds transfers or any other means to facilitate the payment of each installment.
(e)Except for any recommendation for approval as specified in subdivision (a), the members of the State Board of Equalization shall not participate in any offer in compromise matters pursuant to this section.
(f)
(e) A taxpayer that has received a compromise under paragraph (2) of subdivision (c) may be required to enter into any collateral agreement that is deemed necessary for the protection of the interests of the state. A collateral agreement may include a provision that allows the board department to reestablish the liability, or any portion thereof, if the taxpayer has sufficient annual income during the succeeding five-year period. The board department shall establish criteria for determining “sufficient annual income” for purposes of this subdivision.
(g)
(f) A taxpayer that has received a compromise under paragraph (2) of subdivision (c) shall file and pay by the due date all subsequently required sales and use tax returns for a five-year period from the date the liability is compromised, or until the taxpayer is no longer required to file sales and use tax returns, whichever period is earlier.
(h)
(g) For amounts to be compromised under this section, the following conditions shall exist:
(1) The taxpayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the taxpayer’s present assets or income.
(B) The taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board department shall have determined that acceptance of the compromise is in the best interest of the state.
(i)
(h) A determination by the board
department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final tax liability shall not be subject to administrative appeal or judicial review.
(j)
(i) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board department shall notify the taxpayer in writing. In the event an offer is rejected, the amount
posted will either be applied to the liability or refunded, at the discretion of the taxpayer.
(k)
(j) When more than one taxpayer is liable for the debt, such as with spouses or partnerships or other business combinations, the acceptance of an offer in compromise from one liable taxpayer shall not relieve the other taxpayers from paying the entire liability. However, the amount of the liability shall be reduced by the amount of the accepted offer.
(l)
(k) Whenever a compromise of tax or penalties or total tax and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the taxpayer.
(2) The amount of unpaid tax and related penalties, additions to tax, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the taxpayer or violate the confidentiality provisions of Section 7056. A list shall not be prepared and releases shall not be distributed by the board department in connection with these statements.
(m)
(l) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished (without regard to any statute of limitations that otherwise may be applicable), and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board department property belonging to the estate of a taxpayer or other
person liable for the tax.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made a false statement, relating to the estate or financial condition of the taxpayer or other person liable for the tax.
(2) The taxpayer fails to comply with any of the terms and conditions relative to the offer.
(n)
(m) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon
conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a taxpayer or other person liable in respect of the tax.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax.
(o)
(n) For purposes of this section, “person” means the taxpayer, a member of the taxpayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the taxpayer, or another corporation or entity owned or controlled by the taxpayer, directly or indirectly, or that owns or controls the taxpayer, directly or indirectly.
(p)
(o) This section shall remain in effect only until January 1, 2023, 2028, and as
of that date is repealed.
SEC. 8.
Section 7093.6 of the Revenue and Taxation Code, as amended by Section 2 of Chapter 272 of the Statutes of 2017, is amended to read:7093.6.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation by its executive director and chief counsel, jointly, may compromise a final tax liability involving a reduction in tax in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final tax
liability in which the reduction of tax is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final tax liability” means any final tax liability arising under Part 1 (commencing with Section 6001), Part 1.5 (commencing with Section 7200), Part 1.6 (commencing with Section 7251), and Part 1.7 (commencing with Section 7280) or related interest, additions to tax, penalties, or other amounts assessed under this part.
(c) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the taxpayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or
discontinued business.
(d) For amounts to be compromised under this section, the following conditions shall exist:
(1) The taxpayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the taxpayer’s present assets or income.
(B) The taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board
department shall have determined that acceptance of the compromise is in the best interest of the state.
(e) A determination by the board
department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final tax liability shall not be subject to administrative appeal or judicial review.
(f) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board department shall notify the taxpayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the taxpayer.
(g) When more than one taxpayer is liable for the debt, such as with spouses or partnerships or other business
combinations, the acceptance of an offer in compromise from one liable taxpayer shall not relieve the other taxpayers from paying the entire liability. However, the amount of the liability shall be reduced by the amount of the accepted offer.
(h) Whenever a compromise of tax or penalties or total tax and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of
the taxpayer.
(2) The amount of unpaid tax and related penalties, additions to tax, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the taxpayer or violate the confidentiality provisions of Section 7056. No list shall be prepared and no releases distributed by the board department
in connection with these statements.
(i) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished (without regard to any statute of limitations that otherwise may be applicable), and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a taxpayer or other person liable for the tax.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made a false statement, relating to the estate or financial condition of the taxpayer or other person liable for the tax.
(2) The taxpayer fails to comply with any of the terms and conditions relative to the offer.
(j) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with
the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a taxpayer or other person liable in respect of the tax.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax.
(k) For purposes of this section, “person” means the taxpayer, a member of the taxpayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the taxpayer, or another corporation or entity owned or controlled by the taxpayer, directly or indirectly, or that owns or controls the taxpayer, directly or indirectly.
(l) This section shall become operative on January 1, 2023. 2028.
SEC. 9.
Section 7097 of the Revenue and Taxation Code is amended to read:7097.
(a) At least 30 days prior to the filing or recording of liens 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, the(b) The preliminary notice required by this section shall not apply to jeopardy determinations issued under Article 4 (commencing with Section 6536) of Chapter 5.
(c) If the board department determines that filing a lien was in error, it shall mail a release to the taxpayer and the entity recording the lien as soon as possible, but no later than seven days, after this determination and the receipt of lien recording information. The
release shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the board department shall immediately issue a release of lien to the taxpayer and the entity recording the lien.
(d) When the board department releases a lien erroneously filed, notice of that fact shall be mailed to the taxpayer and, upon the request of the taxpayer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(e) (1) The board department may release or subordinate a lien if the board
department determines that the release any of the following:
(A) Release or subordination will facilitate the collection of the tax liability or or liability.
(B) Release or subordination will be in the best interest of the state and the taxpayer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 10.
Section 7656.5 is added to the Revenue and Taxation Code, to read:7656.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 11.
Section 7657 of the Revenue and Taxation Code is amended to read:7657.
(a) If the(b) Except as provided in subdivision (c),
subdivisions (c) and (d), any person seeking to be relieved of the penalty shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she that person bases his or her the claim for relief.
(c) The
department may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this
section.
SEC. 12.
Section 7658 of the Revenue and Taxation Code is amended to read:7658.
(a) If the(b) Except as provided in subdivision (c), a person seeking to be relieved of the interest shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she that person bases his or her
the claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 13.
Section 8126 of the Revenue and Taxation Code is amended to read:8126.
If theSEC. 14.
Section 8191 of the Revenue and Taxation Code is amended to read:8191.
If theSEC. 15.
Section 8754.5 is added to the Revenue and Taxation Code, to read:8754.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 16.
Section 8877 of the Revenue and Taxation Code is amended to read:8877.
(a) If the(b) Except as provided in subdivision (c),
subdivisions (c) or (d), any person seeking to be relieved of the penalty shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The
department may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this
section.
SEC. 17.
Section 8878 of the Revenue and Taxation Code is amended to read:8878.
(a) If the Any
(b) Except as provided in subdivision (c), any person seeking to be relieved of the interest shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her
the claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 18.
Section 8957 of the Revenue and Taxation Code is amended to read:8957.
(a) Subject to the limitations in subdivisions (b) and (c), the(b) The person served shall continue to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest,
has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service of the notice of levy on the person and prior to the expiration of the levy.
(d) For the
purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for services of independent contractors, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the user, vendor, or other person liable for the tax.
(3) Any other payments or credits due or becoming due the user, vendor, or other person liable as the result of written or oral contracts for services or sales whether denominated as
wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the taxpayer and shall be delivered or mailed delivered, mailed, or served by electronic transmission or other electronic technology to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 19.
Section 9151 of the Revenue and Taxation Code is amended to read:9151.
If theAny overpayment of the tax by a user to a vendor who is required to collect the tax and who gives the user a receipt therefor pursuant to Section 8732 shall be credited or refunded by the state to the user.
For any amount exceeding fifty thousand dollars ($50,000), the board’s proposed department’s determination under this section shall be available as a public record for at least 10 days prior to after the effective date of the determination.
SEC. 20.
Section 9196 of the Revenue and Taxation Code is amended to read:9196.
If any amount has been illegally determined either by the person filing the return or by theSEC. 21.
Section 9275 of the Revenue and Taxation Code is amended to read:9275.
(a) At least 30 days prior to the filing or recording of liens 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, the(b) The preliminary notice required by this section shall not apply to jeopardy determinations issued under Article 4 (commencing with Section 8826) of Chapter 4.
(c) If the board department determines that filing a lien was in error, it shall mail a release to the taxpayer and the entity recording the lien as soon as possible, but no later than seven days, after this determination and receipt of lien recording information. The release
shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the board department shall immediately issue a release of lien to the taxpayer and the entity recording the lien.
(d) When the board department releases a lien erroneously filed, notice of that fact shall be mailed to the taxpayer and, upon the request of the taxpayer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(e) (1) The board department may release or subordinate a lien if the board department determines that the release any of the following:
(A) Release or subordination will facilitate the collection of the tax or liability liability.
(B) Release or subordination will be in the best interest of the state and the taxpayer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 22.
Section 9278 of the Revenue and Taxation Code, as amended by Section 3 of Chapter 272 of the Statutes of 2017, is amended to read:9278.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation by
its executive director and chief counsel, jointly, may compromise a final tax liability involving a reduction in tax in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final tax liability in which the reduction of tax is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final tax liability” means any final tax liability arising under Part 3 (commencing with Section 8601), or related
interest, additions to tax, penalties, or other amounts assessed under this part.
(c) (1) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the taxpayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(2) Notwithstanding paragraph (1), a qualified final tax liability may be compromised regardless of whether the business has been discontinued or transferred or whether the taxpayer has a controlling interest or association with a similar type of business as the transferred or discontinued business. All other provisions of this section that apply to a final tax liability shall also apply to a
qualified final tax liability, and a compromise shall not be made under this subdivision unless all other requirements of this section are met. For purposes of this subdivision, a “qualified final tax liability” means either of the following:
(A) That part of a final tax liability, including related interest, additions to tax, penalties or other amounts assessed under this part, arising from a transaction or transactions in which the board department finds no evidence that the vendor collected use fuel tax reimbursement from the purchaser or other person and which was determined against the vendor under Article 2 (commencing with Section 8776), Article 3 (commencing with Section 8801), or Article 5 (commencing with Section 8851) of Chapter 4.
(B) A final tax liability, including related interest, additions to tax, penalties or other amounts assessed under this part, arising under Article 4.5 (commencing with Section 9021) of Chapter 5.
(3) A qualified final tax liability may not be compromised with any of the following:
(A) A taxpayer who previously received a compromise under paragraph (2) for a liability, or a part thereof, arising from a transaction or transactions that are substantially similar to the transaction or transactions attributable to the liability for which the taxpayer is making the offer.
(B) A business that was transferred by a taxpayer who previously received a compromise under paragraph (2) and who has a controlling interest or association with the transferred business, when
the liability for which the offer is made is attributable to a transaction or transactions substantially similar to the transaction or transactions for which the taxpayer’s liability was previously compromised.
(C) A business in which a taxpayer who previously received a compromise under paragraph (2) has a controlling interest or association with a similar type of business for which the taxpayer received the compromise, when the liability of the business making the offer arose from a transaction or transactions substantially similar to the transaction or transactions for which the taxpayer’s liability was previously compromised.
(d) The board department may, in its discretion, enter into a
written agreement that permits the taxpayer to pay the compromise in installments for a period not exceeding one year. The agreement may provide that the installments shall be paid by electronic funds transfers or any other means to facilitate the payment of each installment.
(e)Except for any recommendation for approval as specified in subdivision (a), the members of the State Board of
Equalization shall not participate in any offer in compromise matters pursuant to this section.
(f)
(e) A taxpayer that has received a compromise under paragraph (2) of subdivision (c) may be required to enter into any collateral agreement that is deemed necessary for the protection of the interests of the state. A collateral agreement may include a provision that allows the board department to reestablish the liability, or any portion thereof, if the taxpayer has sufficient annual income during the succeeding five-year period. The board
department shall establish criteria for determining “sufficient annual income” for purposes of this subdivision.
(g)
(f) A taxpayer that has received a compromise under paragraph (2) of subdivision (c) shall file and pay by the due date all subsequently required use fuel tax returns for a five-year period from the date the liability is compromised, or until the taxpayer is no longer required to file use fuel tax returns, whichever period is earlier.
(h)
(g) For amounts to be compromised under this section, the following conditions shall exist:
(1) The taxpayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the taxpayer’s present assets or income.
(B) The taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board
department shall have determined that acceptance of the compromise is in the best interest of the state.
(i)
(h) A determination by the board department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final tax liability shall not be subject to administrative appeal or judicial review.
(j)
(i) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board
department shall notify the taxpayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the taxpayer.
(k)
(j) When more than one taxpayer is liable for the debt, such as with spouses or partnerships or other business combinations, the acceptance of an offer in compromise from one liable taxpayer shall not relieve the other taxpayers from paying the entire liability. However, the amount of the liability shall be reduced by the amount of the accepted offer.
(l)
(k) Whenever a compromise of tax or penalties or total tax and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the taxpayer.
(2) The amount of unpaid tax and related penalties,
additions to tax, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the taxpayer or violate the confidentiality provisions of Section 9255. A list shall not be prepared and releases shall not be distributed by the board department in connection with these statements.
(m)
(l) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished (without regard to any statute of limitations that otherwise may be applicable), and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a taxpayer or other person liable for the tax.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made a false statement, relating to the estate or financial condition of the taxpayer or other person liable for the tax.
(2) The taxpayer fails to comply with any of the terms and conditions relative to the offer.
(n)
(m) A person who, in connection with an offer or compromise under this section, or offer of that compromise to
enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a taxpayer or other person liable in respect of the tax.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax.
(o)
(n) For purposes of this section, “person” means the taxpayer, a member of the taxpayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the taxpayer, or another corporation or entity owned or controlled by the taxpayer, directly or indirectly, or that owns or controls the taxpayer, directly or indirectly.
(p)
(o) This section shall remain in effect only until January 1, 2023,
2028, and as of that date is repealed.
SEC. 23.
Section 9278 of the Revenue and Taxation Code, as amended by Section 4 of Chapter 272 of the Statutes of 2017, is amended to read:9278.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation by its executive director and chief counsel, jointly, may compromise a final tax liability involving a reduction in tax in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days
of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final tax liability in which the reduction of tax is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final tax liability” means any final tax liability arising under Part 3 (commencing with Section 8601), or related interest, additions to tax, penalties, or other amounts assessed under this part.
(c) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred,
where the taxpayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(d) For amounts to be compromised under this section, the following conditions shall exist:
(1) The taxpayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the taxpayer’s present assets or income.
(B) The taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board department shall have determined that acceptance of the compromise is in the best interest of the state.
(e) A determination by the board department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final tax liability shall not be subject to administrative appeal or judicial review.
(f) When an offer in compromise is either accepted or rejected, or the terms and
conditions of a compromise agreement are fulfilled, the board department shall notify the taxpayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the taxpayer.
(g) When more than one taxpayer is liable for the debt, such as with spouses or partnerships or other business combinations, the acceptance of an offer in compromise from one liable taxpayer shall not relieve the other taxpayers from paying the entire liability. However, the amount of the liability shall be reduced by the amount of the accepted offer.
(h) Whenever a compromise of tax or penalties or total tax and penalties in excess of five
hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the taxpayer.
(2) The amount of unpaid tax and related penalties, additions to tax, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the
best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the taxpayer or violate the confidentiality provisions of Section 9255. No list shall be prepared and no releases distributed by the board department
in connection with these statements.
(i) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished (without regard to any statute of limitations that otherwise may be applicable), and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a taxpayer or other person liable for the tax.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made a false statement, relating to the estate or financial condition of the taxpayer or other person liable for the tax.
(2) The taxpayer fails to comply with any of the terms and conditions relative to the offer.
(j) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with
the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a taxpayer or other person liable in respect of the tax.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax.
(k) For purposes of this section, “person” means the taxpayer, a member of the taxpayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the taxpayer, or another corporation or entity owned or controlled by the taxpayer, directly or indirectly, or that owns or controls the taxpayer, directly or indirectly.
(l) This section shall become operative on January 1, 2023. 2028.
SEC. 24.
Section 19559 of the Revenue and Taxation Code is repealed.(a)(1)The Franchise Tax Board may disclose returns and return information to federal agencies on the same terms and to the same extent as returns and return information may be disclosed by the Secretary of the Treasury under paragraph (3)(C) or paragraph (7) of Section 6103(i) of the Internal Revenue Code.
(2)Notwithstanding paragraph (1), the Franchise Tax Board may not disclose any return or return information under this section if the Franchise
Tax Board determines, in the manner specified by the Franchise Tax Board, that this disclosure would identify a confidential informant or seriously impair a civil or criminal tax investigation.
(b)This section shall apply to disclosures made on or after January 23, 2002, except that no disclosures may be made under this section after December 31, 2005.
SEC. 25.
Section 19573 is added to the Revenue and Taxation Code, to read:19573.
(a) The State Department of Social Services shall exchange data with the Franchise Tax Board upon request, including, but not limited to, the names, addresses, and contact information of individuals that may qualify for the California Earned Income Tax Credit. The data provided shall remain confidential and shall be used only for purposes directly connected with the California Earned Income Tax Credit.(b) Notwithstanding Section 19542 or any other law, the Franchise Tax Board may disclose individual income tax return information for taxable years beginning on or after January 1, 2018, and before January 1, 2020, to the State Department of Social Services. The information provided shall remain confidential and shall
be used only for purpose of informing state residents of the availability of federal economic stimulus payments.
SEC. 26.
Section 30185.5 is added to the Revenue and Taxation Code, to read:30185.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 27.
Section 30282 of the Revenue and Taxation Code is amended to read:30282.
(a) If the(b) Except as provided in subdivision (c),
subdivisions (c) and (d),
any person seeking to be relieved of the penalty shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The department may grant relief of the penalty for any person
in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.
SEC. 28.
Section 30283 of the Revenue and Taxation Code is amended to read:30283.
(a) If the Any
(b) Except as provided in subdivision (c), a person seeking to be relieved of the interest shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her
their claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 29.
Section 30315 of the Revenue and Taxation Code is amended to read:30315.
(a) The(b) The person served shall continue to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following
service of the notice of levy on the person and prior to the expiration of the levy.
(d) For the purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for services of independent contractors, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the distributor, dealer, or other person liable for the tax.
(3) Any other
payments or credits due or becoming due the distributor, dealer, or other person liable as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the taxpayer and shall be delivered or mailed delivered, mailed, or served by electronic transmission or other electronic technology to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 30.
Section 30361 of the Revenue and Taxation Code is amended to read:30361.
If theSEC. 31.
Section 30421 of the Revenue and Taxation Code is amended to read:30421.
If any amount has been illegally determined, theSEC. 32.
Section 30459.15 of the Revenue and Taxation Code, as amended by Section 5 of Chapter 272 of the Statutes of 2017, is amended to read:30459.15.
(a)(2)Except as provided in paragraph (3), the board, upon
recommendation by its executive director and chief counsel, jointly, may compromise a final tax liability involving a reduction in tax in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final tax liability in which the reduction of tax is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final tax liability” means any final tax liability arising under Part 13 (commencing with Section
30001), or related interest, additions to tax, penalties, or other amounts assessed under this part.
(c) Offers in compromise shall be considered only for liabilities that were generated by the following:
(1) A business that has been discontinued or transferred, where the taxpayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(2) A taxpayer that has purchased untaxed cigarettes or tobacco products from out-of-state vendors for the taxpayer’s own use or consumption.
(3) Notwithstanding paragraph (1) or (2), a qualified final tax liability may be compromised regardless of whether the
business has been discontinued or transferred or whether the taxpayer has a controlling interest or association with a similar type of business as the transferred or discontinued business. All other provisions of this section that apply to a final tax liability shall also apply to a qualified final tax liability, and a compromise shall not be made under this subdivision unless all other requirements of this section are met. For purposes of this subdivision, a “qualified final tax liability” means either of the following:
(A) That part of a final tax liability, including related interest, additions to tax, penalties, or other amounts assessed under this part, arising from a transaction or transactions in which the board department finds no evidence that the
taxpayer collected cigarette or tobacco products tax reimbursement from the purchaser or other person and which was determined against the taxpayer under Article 2 (commencing with Section 30201), Article 3 (commencing with Section 30221), or Article 5 (commencing with Section 30261) of Chapter 4.
(B) That part of a final tax liability for cigarette or tobacco products tax, including related interest, additions to tax, penalties, or other amounts assessed under this part, determined under Article 2 (commencing with Section 30201), Article 3 (commencing with Section 30221), and Article 5 (commencing with Section 30261) of Chapter 4 against a taxpayer who is a consumer that is not required to hold a license under Article 1 (commencing with Section 30140) of Chapter 3.
(4) A qualified final tax liability may not be compromised with any of the following:
(A) A taxpayer who previously received a compromise under paragraph (3) for a liability, or a part thereof, arising from a transaction or transactions that are substantially similar to the transaction or transactions attributable to the liability for which the taxpayer is making the offer.
(B) A business that was transferred by a taxpayer who previously received a compromise under paragraph (3) and who has a controlling interest or association with the transferred business, when the liability for which the offer is made is attributable to a transaction or transactions substantially similar to the transaction or transactions for which the taxpayer’s liability was previously compromised.
(C) A business in which a taxpayer who previously received a compromise under paragraph (3) has a controlling interest or association
with a similar type of business for which the taxpayer received the compromise, when the liability of the business making the offer arose from a transaction or transactions substantially similar to the transaction or transactions for which the taxpayer’s liability was previously compromised.
(d) The board
department may, in its discretion, enter into a written agreement which that permits the taxpayer to pay the compromise in installments for a period not exceeding one year. The agreement may provide that such installments shall be paid by electronic funds transfers or any other means to facilitate the payment of each installment.
(e)Except for any recommendation for approval as specified in subdivision (a), the members of the State Board of Equalization shall not participate in any offer in compromise matters pursuant to this section.
(f)
(e) A taxpayer that has received a compromise under paragraph (3) of subdivision (c) may be required to enter into any collateral agreement that is deemed necessary for the protection of the interests of the state. A collateral agreement may include a provision that allows the board department to reestablish the liability, or any portion thereof, if the taxpayer has sufficient annual income during the succeeding five-year period. The board department shall
establish criteria for determining “sufficient annual income” for purposes of this subdivision.
(g)
(f) A taxpayer that has received a compromise under paragraph (3) of subdivision (c) shall file and pay by the due date all subsequently required cigarette and tobacco products tax reports or returns for a five-year period from the date the liability is compromised, or until the taxpayer is no longer required to file cigarette and tobacco products tax reports or returns, whichever period is earlier.
(h)
(g) Offers in compromise shall not be considered under the following conditions:
(1) The taxpayer has been convicted of felony tax evasion under this part during the liability period.
(2) The taxpayer has filed a statement under paragraph (3) of subdivision (i) (h) and continues to purchase untaxed cigarettes or tobacco products from out-of-state vendors for the taxpayer’s own use or consumption.
(i)
(h) For amounts to be compromised under this section, the following conditions shall exist:
(1) The taxpayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the taxpayer’s present assets or income.
(B) The taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board
department shall have determined that acceptance of the compromise is in the best interest of the state.
(3) For liabilities generated in the manner described in paragraph (2) of subdivision (c), the taxpayer shall file with the board department
a statement, under penalty of perjury, that he or she the taxpayer will no longer purchase untaxed cigarettes or tobacco products from out-of-state vendors for his or her the taxpayer’s own use or consumption.
(j)
(i) A determination by the board
department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final tax liability shall not be subject to administrative appeal or judicial review.
(k)
(j) (1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of the unpaid tax and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the taxpayer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to
partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the taxpayer.
(l)
(k) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board department shall notify the taxpayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the taxpayer.
(m)
(l) When more than one taxpayer is liable for the debt, such as with spouses or partnerships or other business combinations, including, but not limited to, taxpayers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable taxpayer shall reduce the amount of the liability of the other taxpayers by the amount of the accepted offer.
(n)
(m) Whenever a compromise of tax or penalties or total tax and penalties in excess of five hundred dollars
($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board
department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the taxpayer.
(2) The amount of unpaid tax and related penalties, additions to tax, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the taxpayer or violate the confidentiality provisions of Section 30455. A list shall not
be prepared and releases shall not be distributed by the board department in connection with these statements.
(o)
(n) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board
department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a taxpayer or other person liable for the tax.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made a false statement, relating to the estate or financial condition of the taxpayer or other person liable for the tax.
(2) The taxpayer fails to comply with any of the terms and conditions relative to the offer.
(p)
(o) A person who, in connection with an offer or compromise under this section, or offer of that compromise to
enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a taxpayer or other person liable in respect of the tax.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax.
(q)
(p) For purposes of this section, “person” means the taxpayer, a member of the taxpayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the taxpayer, or another corporation or entity owned or controlled by the taxpayer, directly or indirectly, or that owns or controls the taxpayer, directly or indirectly.
(r)
(q) This section shall remain in effect only until January 1, 2023,
2028, and as of that date is repealed.
SEC. 33.
Section 30459.15 of the Revenue and Taxation Code, as amended by Section 6 of Chapter 272 of the Statutes of 2017, is amended to read:30459.15.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation by its executive director and chief counsel, jointly, may compromise a final tax liability involving a reduction in tax in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final tax
liability in which the reduction of tax is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final tax liability” means any final tax liability arising under Part 13 (commencing with Section 30001), or related interest, additions to tax, penalties, or other amounts assessed under this part.
(c) Offers in compromise shall be considered only for liabilities that were generated by the following:
(1) A business that has been discontinued or transferred, where the taxpayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(2) A taxpayer that has purchased untaxed cigarettes or tobacco products from out-of-state vendors for the taxpayer’s own use or consumption.
(d) Offers in compromise shall not be considered under the following conditions:
(1) The taxpayer has been convicted of felony tax evasion under this part during the liability period.
(2) The taxpayer has filed a statement under paragraph (3) of subdivision (e) and continues to purchase untaxed cigarettes or tobacco products from out-of-state vendors for the taxpayer’s own use or consumption.
(e) For amounts to be compromised under this section, the following conditions shall exist:
(1) The taxpayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the taxpayer’s present assets or income.
(B) The taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board department shall have determined that acceptance of the compromise is in the best interest of the state.
(3) For liabilities generated in
the manner described in paragraph (2) of subdivision (c), the taxpayer shall file with the board department a statement, under penalty of perjury, that he or she the taxpayer will no longer purchase untaxed cigarettes or tobacco products from out-of-state vendors for his or her the taxpayer’s own use or consumption.
(f) A determination by the board
department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final tax liability shall not be subject to administrative appeal or judicial review.
(g) (1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of the unpaid tax and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the taxpayer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the taxpayer.
(h) When an offer in compromise is either accepted or rejected, or the terms and conditions of
a compromise agreement are fulfilled, the board department
shall notify the taxpayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the taxpayer.
(i) When more than one taxpayer is liable for the debt, such as with spouses or partnerships or other business combinations, including, but not limited to, taxpayers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable taxpayer shall reduce the amount of the liability of the other taxpayers by the amount of the accepted offer.
(j) Whenever a compromise of tax or penalties or total tax and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive
director of the board
department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the taxpayer.
(2) The amount of unpaid tax and related penalties, additions to tax, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the taxpayer or violate the confidentiality provisions of Section 30455. A list shall not
be prepared and releases shall not be distributed by the board department in connection with these statements.
(k) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board
department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board department property belonging to the estate of a taxpayer or other person liable for the tax.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made a false statement, relating to the estate or financial condition of the taxpayer or other person liable for the tax.
(2) The taxpayer fails to comply with any of the terms and conditions relative to the offer.
(l) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a taxpayer or other person liable in respect of the tax.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax.
(m) For
purposes of this section, “person” means the taxpayer, a member of the taxpayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the taxpayer, or another corporation or entity owned or controlled by the taxpayer, directly or indirectly, or that owns or controls the taxpayer, directly or indirectly.
(n) This section shall become operative on January 1, 2023. 2028.
SEC. 34.
Section 30459.5 of the Revenue and Taxation Code is amended to read:30459.5.
(a) At least 30 days prior to the filing or recording of liens 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, the(b) The preliminary notice required by this section shall not apply to jeopardy determinations issued under Article 4 (commencing with Section 30241) of Chapter 4.
(c) If the board department determines that filing a lien was in error, it shall mail a release to the taxpayer and the entity recording the lien as soon as possible, but no later than seven days, after this determination and receipt of lien recording information. The release
shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the board department shall immediately issue a release of lien to the taxpayer and the entity recording the lien.
(d) When the board department releases a lien erroneously filed, notice of that fact shall be mailed to the taxpayer and, upon the request of the taxpayer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(e) (1) The board department may release or subordinate a lien if the board department determines that the release any of the following:
(A) Release or subordination will facilitate the collection of the tax liability or
liability.
(B) Release or subordination will be in the best interest of the state and the taxpayer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 35.
Section 38405.5 is added to the Revenue and Taxation Code, to read:38405.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 36.
Section 38452 of the Revenue and Taxation Code is amended to read:38452.
(a) If the(b) Except as provided in subdivision (c),
subdivisions (c) and (d), any person seeking to be relieved of the penalty shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The
department may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board department shall establish criteria that provides for efficient resolution of requests for relief pursuant to this
section.
SEC. 37.
Section 38453 of the Revenue and Taxation Code is amended to read:38453.
(a) If the Any
(b) Except as provided in subdivision (c), a person seeking to be relieved of the interest shall file with the board department a statement under penalty of perjury setting forth the facts upon which he the person bases his
the
claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 38.
Section 38503 of the Revenue and Taxation Code is amended to read:38503.
(a) Subject to the limitations in subdivisions (b) and (c), the(b) The person served shall continue to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in
full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The amount of each payment due or becoming due to the timber owner during the period of the levy.
(d) For the purposes of this section, “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. “Payments” does include all of the following:
(1) Payments due for services for
independent contractors, dividends, rents, royalties, residuals, patent rights, mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the timber owner liable for the tax.
(3) Any other payments or credits due or becoming due the timber owner as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the taxpayer and shall be delivered or mailed delivered, mailed, or served by electronic
transmission or other electronic technology to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 39.
Section 38601 of the Revenue and Taxation Code is amended to read:38601.
If theSEC. 40.
Section 38631 of the Revenue and Taxation Code is amended to read:38631.
If any amount has been illegally determined either by the person filing the return or by theSEC. 41.
Section 40065.5 is added to the Revenue and Taxation Code, to read:40065.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 42.
Section 40102 of the Revenue and Taxation Code is amended to read:40102.
(a) If the(b) Except as provided in subdivision (c),
subdivisions (c) and (d),
any person seeking to be relieved of the penalty shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she that person bases his or her the claim for relief.
(c) The department may grant relief of the penalty for any person
in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.
SEC. 43.
Section 40103 of the Revenue and Taxation Code is amended to read:40103.
(a) If theAny
(b) Except as provided in subdivision (c), a person seeking to be relieved of the interest shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her
the claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 44.
Section 40111 of the Revenue and Taxation Code is amended to read:40111.
(a) If the(b) Any overpayment of the surcharge by a consumer to the state shall be credited or refunded by the state to the consumer.
(c) (1) Except as provided in paragraph (2), any overpayment of the surcharge by the consumer to an electric utility that is required to collect the surcharge shall be refunded by the state to the consumer.
(2) If the electric utility has paid the amount to the board department and establishes to the satisfaction of the board
department that it has not collected the amount from the consumer or has refunded the amount to the consumer, the overpayment may be credited or refunded by the state to the electric utility.
SEC. 45.
Section 40121 of the Revenue and Taxation Code is amended to read:40121.
If any amount has been illegally determined either by the person filing the return or by theSEC. 46.
Section 40155 of the Revenue and Taxation Code is amended to read:40155.
(a) The(b) The person served shall continue to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following
service of the notice of levy on the person and prior to the expiration of the levy.
(d) For the purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for services of independent contractors, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the consumer or other person liable for the surcharge.
(3) Any other payments
or credits due or becoming due the consumer or other person liable as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the consumer and shall be delivered or mailed delivered, mailed, or served by first-class mail, or by electronic transmission or other electronic technology, to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 47.
Section 40215 of the Revenue and Taxation Code is amended to read:40215.
(a) At least 30 days prior to the filing or recording of liens 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, the(b) If the board department determines that filing a lien was in error, it shall mail a release to the taxpayer and the entity recording the lien as soon as possible, but no later than seven days, after this determination and receipt of lien recording information. The release shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the board
department shall immediately issue a release of lien to the taxpayer and the entity recording the lien.
(c) When the board department releases a lien erroneously filed, notice of that fact shall be mailed to the taxpayer and, upon the request of the taxpayer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(d) (1) The board
department may release or subordinate a lien if the board department determines that the release any of the following:
(A) Release or subordination will facilitate the collection of the tax liability or
(B) Release or subordination will be in the best interest of the state and the taxpayer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 48.
Section 41054.5 is added to the Revenue and Taxation Code, to read:41054.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 49.
Section 41095 of the Revenue and Taxation Code is amended to read:41095.
(a) Any person who fails to pay any surcharge to the state or any amount of surcharge required to be collected and paid to the state, except amounts of determinations made by the department under Article 3 (commencing with Section 41070) or Article 4 (commencing with Section 41080), within the time required shall pay a penalty of 10 percent of the surcharge in addition to the surcharge or amount of surcharge, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the surcharge or the amount of surcharge required to be collected became due and payable to the state until the date of payment.(b) Any person who fails to file a return in accordance with the due date set forth in Section
41052 or the due date established by the department in accordance with Section 41052.1, shall pay a penalty of 10 percent of the amount of the surcharge with respect to the period for which the return is required.
(c) The penalties imposed by this section shall be limited to a maximum of 10 percent of the surcharge for which the return is required for any one return.
SEC. 50.
Section 41096 of the Revenue and Taxation Code is amended to read:41096.
(a) If the department finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 41060, 41080, 41090, and 41095.(b) Except as provided in subdivision (c), subdivisions (c) and (d), any person seeking to be relieved of the penalty shall file with the department a statement under penalty of perjury setting forth the facts upon which the person
bases the claim for relief.
(c) The department may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this
section.
SEC. 51.
Section 41097 of the Revenue and Taxation Code is amended to read:41097.
(a) If the department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the interest provided by Sections 41054, 41060, 41082, and 41095. Any
(b) Except as provided in
subdivision (c), a person seeking to be relieved of the interest shall file with the department a statement under penalty of perjury setting forth the facts upon which the person bases the claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 52.
Section 41100 of the Revenue and Taxation Code is amended to read:41100.
(a) If the department determines that any amount, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the department shall set forth that fact in the records of the department, certify the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid, and credit the excess amount collected or paid on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or their successors, administrators, or executors. Any Any
(b) Any overpayment of the surcharge by a service user to a service supplier or by a prepaid consumer to a seller who is required to collect the
surcharge shall be credited or refunded by the state to the service user. However, if the service supplier or seller has paid the amount to the department and establishes to the satisfaction of the department that it has not collected the amount from the service user or has refunded the amount to the service user, the overpayment may be credited or refunded by the state to the service supplier.
SEC. 53.
Section 41107 of the Revenue and Taxation Code is amended to read:41107.
If any amount has been illegally determined either by the person filing the return or by the department, the department shall set forth that fact in its records, certify the amount determined to be in excess of the amount legally due and the person against whom the determination was made, and authorize the cancellation of the amount upon the records of the department. AnySEC. 54.
Section 41123.5 of the Revenue and Taxation Code is amended to read:41123.5.
(a) The department may, by notice of(b) The person served shall continue to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the
following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service of the notice of levy on the person and prior to the expiration of the levy.
(d) For the purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of
the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for services of independent contractors, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the service user or other person liable for the surcharge.
(3) Any other payments or credits due or becoming due the service user or other person liable as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the service user and shall be delivered or mailed
delivered, mailed, or served by electronic transmission or other electronic technology to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 55.
Section 41171.5 of the Revenue and Taxation Code, as amended by Section 9 of Chapter 272 of the Statutes of 2017, is amended to read:41171.5.
(a)(2)Except as provided in paragraph (3), the board, upon
recommendation by its executive director and chief counsel, jointly, may compromise a final surcharge liability involving a reduction in surcharges in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final surcharge liability in which the reduction of surcharges is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final surcharge liability” means any final surcharge liability arising under
Part 20 (commencing with Section 41001), or related interest, additions to the surcharge, penalties, or other amounts assessed under this part.
(c) (1) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the surcharge payer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(2) Notwithstanding paragraph (1), a qualified final surcharge liability may be compromised regardless of whether the business has been discontinued or transferred or whether the surcharge payer has a controlling interest or association with a similar type of business as the transferred or discontinued business. All other
provisions of this section that apply to a final surcharge liability shall also apply to a qualified final surcharge liability, and a compromise shall not be made under this subdivision unless all other requirements of this section are met. For purposes of this subdivision, a “qualified final surcharge liability” means either of the following:
(A) That part of a final surcharge liability, including related interest, additions to the surcharge, penalties, or other amounts assessed under this part, arising from a transaction or transactions in which the board department finds no evidence that the service supplier collected the surcharge from the service user or other person and which was determined against the service supplier under Article 3 (commencing
with Section 41070), Article 4 (commencing with Section 41080), or Article 5 (commencing with Section 41085) of Chapter 4.
(B) That part of a final surcharge liability, including related interest, additions to the surcharge, penalties, or other amounts assessed under this part, determined under Article 3 (commencing with Section 41070), Article 4 (commencing with Section 41080), and Article 5 (commencing with Section 41085) of Chapter 4 against a service user who is a consumer that is not required to register with the board department under Article 3 (commencing with Section 41040) of Chapter 2.
(3) A qualified final surcharge liability may not be compromised with any of the following:
(A) A surcharge payer who previously received a compromise under paragraph (2) for a liability, or a part thereof, arising from a transaction or transactions that are substantially similar to the transaction or transactions attributable to the liability for which the surcharge payer is making the offer.
(B) A business that was transferred by a surcharge payer who previously received a compromise under paragraph (2) and who has a controlling interest or association with the transferred business, when the liability for which the offer is made is attributable to a transaction or transactions substantially similar to the transaction or transactions for which the surcharge payer’s liability was previously compromised.
(C) A business in which a surcharge payer who previously received a compromise under paragraph (2) has a
controlling interest or association with a similar type of business for which the surcharge payer received the compromise, when the liability of the business making the offer arose from a transaction or transactions substantially similar to the transaction or transactions for which the surcharge payer’s liability was previously compromised.
(d) The board department may, in its discretion, enter into a written agreement which
that permits the surcharge payer to pay the compromise in installments for a period not exceeding one year. The agreement may provide that such installments shall be paid by electronic funds transfers or any other means to facilitate the payment of each installment.
(e)Except for any recommendation for approval as specified in subdivision (a), the members of the State Board of Equalization shall not participate in any offer in compromise matters pursuant to this section.
(f)
(e) A surcharge payer that has
received a compromise under paragraph (2) of subdivision (c) may be required to enter into any collateral agreement that is deemed necessary for the protection of the interests of the state. A collateral agreement may include a provision that allows the board department to reestablish the liability, or any portion thereof, if the surcharge payer has sufficient annual income during the succeeding five-year period. The board department shall establish criteria for determining “sufficient annual income” for purposes of this subdivision.
(g)
(f) A surcharge payer that has received a compromise under paragraph (2) of subdivision (c) shall file and pay by the due date all subsequently required emergency telephone users surcharge returns for a five-year period from the date the liability is compromised, or until the surcharge payer is no longer required to file emergency telephone users surcharge returns, whichever period is earlier.
(h)
(g) Offers in compromise shall not be considered where the surcharge payer has been convicted of felony tax
evasion under this part during the liability period.
(i)
(h) For amounts to be compromised under this section, the following conditions shall exist:
(1) The surcharge payer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the surcharge payer’s present assets or income.
(B) The surcharge payer does not have reasonable prospects of acquiring increased income or assets that would enable the surcharge payer to satisfy a
greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board
department shall have determined that acceptance of the compromise is in the best interest of the state.
(j)
(i) A determination by the board department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final surcharge liability shall not be subject to administrative appeal or judicial review.
(k)
(j) (1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of the unpaid surcharge and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the surcharge payer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the surcharge payer.
(l)
(k) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board department shall notify the surcharge payer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the surcharge payer.
(m)
(l) When more than one surcharge payer is liable for the debt, such as with spouses or partnerships or other business
combinations, including, but not limited to, surcharge payers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable surcharge payer shall reduce the amount of the liability of the other surcharge payers by the amount of the accepted offer.
(n)
(m) Whenever a compromise of surcharges or penalties or total surcharges and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board
department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the surcharge payer.
(2) The amount of unpaid surcharges and related penalties, additions to surcharges, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the surcharge payer or violate the confidentiality provisions of
Section 41132. A list shall not be prepared and releases shall not be distributed by the board
department in connection with these statements.
(o)
(n) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person
did any of the following acts regarding the making of the offer:
(A) Concealed from the board department property belonging to the estate of a surcharge payer or other person liable for the surcharge.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record or made a false statement, relating to the estate or financial condition of the surcharge payer or other person liable for the surcharge.
(2) The surcharge payer fails to comply with any of the terms and conditions relative to the offer.
(p)
(o) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a surcharge payer or other person liable in respect of the surcharge.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to
the estate or financial condition of the surcharge payer or other person liable in respect of the surcharge.
(q)
(p) For purposes of this section, “person” means the surcharge payer, a member of the surcharge payer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the surcharge payer, or another corporation or entity owned or controlled by the surcharge payer, directly or indirectly, or that owns or controls the surcharge payer, directly or indirectly.
(r)
(q) This section shall remain in effect only until January 1, 2023,
2028, and as of that date is repealed.
SEC. 56.
Section 41171.5 of the Revenue and Taxation Code, as amended by Section 10 of Chapter 272 of the Statutes of 2017, is amended to read:41171.5.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation by its executive director and chief counsel, jointly, may compromise a final surcharge liability involving a reduction in surcharges in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to
compromise a final surcharge liability in which the reduction of surcharges is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final surcharge liability” means any final surcharge liability arising under Part 20 (commencing with Section 41001), or related interest, additions to the surcharge, penalties, or other amounts assessed under this part.
(c) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the surcharge payer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(d) Offers in compromise shall not be considered where the surcharge payer has been convicted of felony tax evasion under this part during the liability period.
(e) For amounts to be compromised under this section, the following conditions shall exist:
(1) The surcharge payer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the surcharge payer’s present assets or income.
(B) The surcharge payer does not have reasonable prospects of acquiring increased income or assets that would enable the surcharge payer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board department shall have determined that acceptance of the compromise is in the best interest of the state.
(f) A determination by the board department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final surcharge liability shall not be subject to administrative appeal or judicial review.
(g) (1) Offers for liabilities with a fraud or evasion
penalty shall require a minimum offer of the unpaid surcharge and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the surcharge payer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the surcharge payer.
(h) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board department shall notify the surcharge payer in writing. In the event an offer is rejected, the amount posted will either be
applied to the liability or refunded, at the discretion of the surcharge payer.
(i) When more than one surcharge payer is liable for the debt, such as with spouses or partnerships or other business combinations, including, but not limited to, surcharge payers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable surcharge payer shall reduce the amount of the liability of the other surcharge payers by the amount of the accepted offer.
(j) Whenever a compromise of surcharges or penalties or total surcharges and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board
department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the surcharge payer.
(2) The amount of unpaid surcharges and related penalties, additions to surcharges, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the surcharge payer or violate the confidentiality provisions of
Section 41132. A list shall not be prepared and releases shall not be distributed by the board department in connection with these statements.
(k) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person did any of the following acts
regarding the making of the offer:
(A) Concealed from the board department property belonging to the estate of a surcharge payer or other person liable for the surcharge.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made a false statement, relating to the estate or financial condition of the surcharge payer or other person liable for the surcharge.
(2) The surcharge payer fails to comply with any of the terms and conditions relative to the offer.
(l) A person who, in connection with an offer or compromise under this
section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a surcharge payer or other person liable in respect of the surcharge.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the surcharge payer or other person liable in respect of the surcharge.
(m) For purposes of this section, “person” means the surcharge
payer, a member of the surcharge payer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the surcharge payer, or another corporation or entity owned or controlled by the surcharge payer, directly or indirectly, or that owns or controls the surcharge payer, directly or indirectly.
(n) This section shall become operative on January 1, 2023. 2028.
SEC. 57.
Section 41175 of the Revenue and Taxation Code is amended to read:41175.
(a) At least 30 days prior to the filing or recording of liens 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, the department shall mail to the taxpayer a preliminary notice. The notice shall specify the statutory authority of the department for filing or recording the lien, indicate the earliest date on which the lien may be filed or recorded, and state the remedies available to the taxpayer to prevent the filing or recording of the lien. In the event tax liens are filed for the same liability in multiple counties, only one preliminary notice shall be sent.(b) If the department determines that filing a lien was in error, it shall mail a release to the taxpayer and the
entity recording the lien as soon as possible, but no later than seven days, after this determination and receipt of lien recording information. The release shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the department shall immediately issue a release of lien to the taxpayer and the entity recording the lien.
(c) When the department releases a lien erroneously filed, notice of that fact shall be mailed to the taxpayer and, upon the request of the taxpayer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(d) (1) The department may release or subordinate a lien if the department determines that the release
any of the following:
(A) Release or subordination will facilitate the collection of the surcharge liability or liability.
(B) Release or subordination will be in the best interest of the state and the taxpayer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 58.
Section 43154.5 is added to the Revenue and Taxation Code, to read:43154.5.
(a) If the Governor issues a state of emergency proclamation, the California Department of Tax and Fee Administration may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the California Department of Tax and Fee Administration makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 59.
Section 43157 of the Revenue and Taxation Code is amended to read:43157.
(a) If the(b) Except as provided in subdivision (c),
subdivisions (c) and (d), any person seeking to be relieved of the penalty shall file with the board California Department of Tax and Fee Administration a statement, under penalty of perjury, setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The California Department of Tax and Fee Administration may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board California Department of Tax and Fee Administration
shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.
SEC. 60.
Section 43158 of the Revenue and Taxation Code is amended to read:43158.
(a) If the(b) Except as provided in subdivision (c), a person seeking to be relieved of interest shall file with the board California Department of Tax and Fee Administration a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her the
claim for relief.
(c) The California Department of Tax and Fee Administration may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 61.
Section 43444.2 of the Revenue and Taxation Code is amended to read:43444.2.
(a) The(b) The person served shall continue to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The
amount of each payment that becomes due following service of the notice of levy on the person and prior to the expiration of the levy.
(d) For the purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for services of independent contractors, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the distributor, dealer, or other person liable for the tax.
(3) Any other payments or credits due or becoming due the distributor, dealer, or other person liable as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the taxpayer and shall be delivered or mailed delivered, mailed, or served by electronic transmission or other electronic technology to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the
notice.
SEC. 62.
Section 43451 of the Revenue and Taxation Code is amended to read:43451.
If theSEC. 63.
Section 43491 of the Revenue and Taxation Code is amended to read:43491.
If any amount has been illegally determined, either by the person filing the return or by theSEC. 64.
Section 43526 of the Revenue and Taxation Code is amended to read:43526.
(a) At least 30 days prior to the filing or recording of liens 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, the(b) The preliminary notice required by this section shall not apply to jeopardy determinations issued under Article 5 (commencing with Section 43350) of Chapter 3.
(c) If the board California Department of Tax and Fee Administration determines that filing a lien was in error, it shall mail a release to the taxpayer and the entity recording the lien as soon as
possible, but no later than seven days, after this determination and receipt of lien recording information. The release shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the board California Department of Tax and Fee Administration shall immediately issue a release of lien to the taxpayer and the entity recording the lien.
(d) When the board California Department of Tax and Fee Administration releases a lien erroneously filed, notice of that fact shall be mailed to the taxpayer and, upon
the request of the taxpayer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(e) (1) The board California Department of Tax and Fee Administration may release or subordinate a lien if the board California Department of Tax and Fee Administration determines that the release
any of the following:
(A) Release or subordination will facilitate the collection of the tax liability or liability.
(B) Release or subordination will be in the best interest of the state and the taxpayer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 65.
Section 45152.5 is added to the Revenue and Taxation Code, to read:45152.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 66.
Section 45155 of the Revenue and Taxation Code is amended to read:45155.
(a) If the(b) Except as provided in subdivision (c),
subdivision (c) and (d), any person seeking to be relieved of the penalty shall file with the board department a statement, under penalty of perjury, setting forth the facts upon which he or she
the person bases his or her the claim for relief.
(c) The department may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.
SEC. 67.
Section 45156 of the Revenue and Taxation Code is amended to read:45156.
(a) If the(b) Any person seeking to be relieved of interest shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 68.
Section 45605 of the Revenue and Taxation Code is amended to read:45605.
(a) The(b) The person served shall continue
to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service of the notice of levy on the person and
prior to the expiration of the levy.
(d) For the purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for services of independent contractors, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the feepayer or other person liable for the fee.
(3) Any other payments or credits due or becoming due the feepayer or other
person liable as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the feepayer and shall be delivered or mailed delivered, mailed, or served by electronic transmission or other electronic technology to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 69.
Section 45651 of the Revenue and Taxation Code is amended to read:45651.
If theSEC. 70.
Section 45801 of the Revenue and Taxation Code is amended to read:45801.
If any amount has been illegally determined, either by the person filing the return or by theSEC. 71.
Section 45871 of the Revenue and Taxation Code is amended to read:45871.
(a) At least 30 days prior to the filing or recording of liens 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, the(b) The preliminary notice required by this section shall not be required with respect to jeopardy determinations issued under Article 4 (commencing with Section 45351) of Chapter 3.
(c) If the board department determines that the filing of a lien was in error, it shall mail a release to the fee payer and the entity recording the lien as soon as possible, but no later than seven days, after this determination and receipt of lien
recording information. The release shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the board department shall immediately issue a release of lien to the fee payer and the entity recording the lien.
(d) When the board department
releases a lien that has been erroneously filed, notice of that release shall be mailed to the fee payer and, upon the request of the fee payer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(e) (1) The board department may release or subordinate a lien if the board department determines that the release
any of the following:
(A) Release or subordination will facilitate the collection of the fee liability or liability.
(B) Release or subordination will be in the best interest of the state and the fee payer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 72.
Section 46153.5 is added to the Revenue and Taxation Code, to read:46153.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 73.
Section 46156 of the Revenue and Taxation Code is amended to read:46156.
(a) If the(b) Except as provided in subdivision (c)
subdivisions (c) and (d),
any person seeking to be relieved of the penalty shall file with the board department a statement, under penalty of perjury, setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The department may grant relief of the penalty for any person
in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.
SEC. 74.
Section 46157 of the Revenue and Taxation Code is amended to read:46157.
(a) If theAny
(b) Except as provided in subdivision (c), any person seeking to be relieved of the interest shall file with the board
department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her the
claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 75.
Section 46406 of the Revenue and Taxation Code is amended to read:46406.
(a) The(b) The person served shall
continue to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service of the notice of levy on the
person and prior to the expiration of the levy.
(d) For the purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for services of independent contractors, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the feepayer or other person liable for the fee.
(3) Any other payments or credits due or becoming due the feepayer
or other person liable as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the feepayer and shall be delivered or mailed delivered, mailed, or served by electronic transmission or other electronic technology to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 76.
Section 46501 of the Revenue and Taxation Code is amended to read:46501.
(a) If the(b) Any proposed determination by the board department that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to
after the effective date of that determination.
SEC. 77.
Section 46551 of the Revenue and Taxation Code is amended to read:46551.
(a) If any amount has been illegally determined, either by the person filing the return or by the(b) Any proposed determination by the board department that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination.
SEC. 78.
Section 46626 of the Revenue and Taxation Code is amended to read:46626.
(a) At least 30 days prior to the filing or recording of a lien pursuant to either Chapter 14 (commencing with Section 7150) or Chapter 14.5 (commencing with Section 7220) of Division 7 of Title 1 of the Government Code, the(b) The preliminary notice required by this section shall not apply to jeopardy determinations issued under Article 4 (commencing with Section 46301) of Chapter 3.
(c) If the board department determines that a lien was recorded in error, it shall mail a release to the fee payer and the entity that recorded the lien as soon as possible, but in no event later than seven days after this determination and the receipt of lien recording
information. The release shall contain a statement that the lien was filed in error. In the event the erroneously recorded lien is obstructing a lawful transaction, the board department shall immediately issue a release of lien to the fee payer and the entity that recorded the lien.
(d) Upon issuing a release pursuant to subdivision (c), notice of that release shall be mailed to the taxpayer. Upon the request of the taxpayer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was recorded.
(e) (1) The board
department
may release or subordinate a lien if the board department determines that the release any of the following:
(A) Release or subordination will facilitate the collection of the fee liability or liability.
(B) Release or subordination will be in the best interest of the state and the fee payer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 79.
Section 46628 of the Revenue and Taxation Code, as amended by Section 11 of Chapter 272 of the Statutes of 2017, is amended to read:46628.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation
by its executive director and chief counsel, jointly, may compromise a final fee liability involving a reduction in fees in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final fee liability in which the reduction of fees is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final fee liability” means any final fee liability arising under Part 24 (commencing with Section 46001), or related
interest, additions to fees, penalties, or other amounts assessed under this part.
(c) (1) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the feepayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(2) Notwithstanding paragraph (1), a qualified final fee liability may be compromised regardless of whether the business has been discontinued or transferred or whether the feepayer has a controlling interest or association with a similar type of business as the transferred or discontinued business. All other provisions of this section that apply to a final fee liability shall also apply to a
qualified final fee liability, and a compromise shall not be made under this subdivision unless all other requirements of this section are met. For purposes of this subdivision, a “qualified final fee liability” means any of the following:
(A) That part of a final fee liability, including related interest, additions to fees, penalties, or other amounts assessed under this part, arising from a transaction or transactions in which the board department finds no evidence that the marine terminal operator or operator of a pipeline collected the oil spill prevention and administration fee from the owner of the petroleum products or crude oil or other person and which was determined against the feepayer under Article 2 (commencing with Section 46201), Article 3
(commencing with Section 46251), or Article 5 (commencing with Section 46351) of Chapter 3.
(B) A final fee liability, including related interest, additions to fees, penalties, or other amounts assessed under this part, arising under Article 6 (commencing with Section 46451) of Chapter 4.
(C) That part of a final fee liability, including related interest, additions to fees, penalties, or other amounts assessed under this part, determined under Article 2 (commencing with Section 46201), Article 3 (commencing with Section 46251), and Article 5 (commencing with Section 46351) of Chapter 3 against an owner of crude oil or petroleum products that is not required to register with the board department
under Article 2 (commencing with Section 46101) of Chapter 2.
(3) A qualified final fee liability may not be compromised with any of the following:
(A) A feepayer who previously received a compromise under paragraph (2) for a liability, or a part thereof, arising from a transaction or transactions that are substantially similar to the transaction or transactions attributable to the liability for which the feepayer is making the offer.
(B) A business that was transferred by a feepayer who previously received a compromise under paragraph (2) and who has a controlling interest or association with the transferred business, when the liability for which the offer is made is attributable to a transaction or transactions substantially similar to the transaction or transactions for which the feepayer’s liability
was previously compromised.
(C) A business in which a feepayer who previously received a compromise under paragraph (2) has a controlling interest or association with a similar type of business for which the feepayer received the compromise, when the liability of the business making the offer arose from a transaction or transactions substantially similar to the transaction or transactions for which the feepayer’s liability was previously compromised.
(d) The board department may, in its discretion, enter into a written agreement which
that permits the feepayer to pay the compromise in installments for a period not exceeding one year. The agreement may provide that such installments shall be paid by electronic funds transfers or any other means to facilitate the payment of each installment.
(e)Except for any recommendation for approval as specified in subdivision (a), the members of the State Board of Equalization shall not participate in any offer in compromise matters pursuant to this section.
(f)
(e) A feepayer that has received a
compromise under paragraph (2) of subdivision (c) may be required to enter into any collateral agreement that is deemed necessary for the protection of the interests of the state. A collateral agreement may include a provision that allows the board department to reestablish the liability, or any portion thereof, if the feepayer has sufficient annual income during the succeeding five-year period. The board department shall establish criteria for determining “sufficient annual income” for purposes of this subdivision.
(g)
(f) A feepayer that has received a compromise under paragraph (2) of subdivision (c) shall file and pay by the due date all subsequently required oil spill prevention and administration fee returns for a five-year period from the date the liability is compromised, or until the feepayer is no longer required to file oil spill prevention and administration fee returns, whichever period is earlier.
(h)
(g) Offers in compromise shall not be considered where the feepayer has been convicted of felony tax evasion
under this part during the liability period.
(i)
(h) For amounts to be compromised under this section, the following conditions shall exist:
(1) The feepayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the feepayer’s present assets or income.
(B) The feepayer does not have reasonable prospects of acquiring increased income or assets that would enable the feepayer to satisfy a greater amount of the liability
than the amount offered, within a reasonable period of time.
(2) The board
department shall have determined that acceptance of the compromise is in the best interest of the state.
(j)
(i) A determination by the board department
that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final fee liability shall not be subject to administrative appeal or judicial review.
(k)
(j) (1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of the unpaid fee and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the feepayer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to partnership accounts where the intent
to commit fraud or evasion can be clearly attributed to a partner of the feepayer.
(l)
(k) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board department
shall notify the feepayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the feepayer.
(m)
(l) When more than one feepayer is liable for the debt, such as with spouses or partnerships or other business combinations, including, but not limited to, feepayers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable feepayer shall reduce the amount of the liability of the other feepayers by the amount of the accepted offer.
(n)
(m) Whenever a compromise of fees or penalties or total fees and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the feepayer.
(2) The amount of unpaid fees and related penalties,
additions to fees, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the feepayer or violate the confidentiality provisions of Section 46751. A list shall not be prepared and releases shall not be distributed by the board department in connection with these statements.
(o)
(n) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a feepayer or other person liable for the fee.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record or made a false statement, relating to the estate or financial condition of the feepayer or other person liable for the fee.
(2) The feepayer fails to comply with any of the terms and conditions relative to the offer.
(p)
(o) A person who, in connection with an offer or compromise under this section, or offer of that compromise to
enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a feepayer or other person liable in respect of the fee.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the feepayer or other person liable in respect of the fee.
(q)
(p) For purposes of this section, “person” means the feepayer, a member of the feepayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the feepayer, or another corporation or entity owned or controlled by the feepayer, directly or indirectly, or that owns or controls the feepayer, directly or indirectly.
(r)
(q) This section shall remain in effect only until January 1, 2023,
2028, and as of that date is repealed.
SEC. 80.
Section 46628 of the Revenue and Taxation Code, as amended by Section 12 of Chapter 272 of the Statutes of 2017, is amended to read:46628.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation by its executive director and chief counsel, jointly, may compromise a final fee liability involving a reduction in fees in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final fee
liability in which the reduction of fees is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final fee liability” means any final fee liability arising under Part 24 (commencing with Section 46001), or related interest, additions to fees, penalties, or other amounts assessed under this part.
(c) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the feepayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(d) Offers in compromise shall not
be considered where the feepayer has been convicted of felony tax evasion under this part during the liability period.
(e) For amounts to be compromised under this section, the following conditions shall exist:
(1) The feepayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the feepayer’s present assets or income.
(B) The feepayer does not have reasonable prospects of acquiring increased income or assets that would enable the feepayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board
department shall have determined that acceptance of the compromise is in the best interest of the state.
(f) A determination by the board
department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final fee liability shall not be subject to administrative appeal or judicial review.
(g) (1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of the unpaid fee and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the feepayer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the feepayer.
(h) When an offer in compromise is either accepted or rejected, or the terms and conditions of
a compromise agreement are fulfilled, the board
department shall notify the feepayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the feepayer.
(i) When more than one feepayer is liable for the debt, such as with spouses or partnerships or other business combinations, including, but not limited to, feepayers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable feepayer shall reduce the amount of the liability of the other feepayers by the amount of the accepted offer.
(j) Whenever a compromise of fees or penalties or total fees and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive
director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the feepayer.
(2) The amount of unpaid fees and related penalties, additions to fees, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work,
apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the feepayer or violate the confidentiality provisions of Section 40175. A list shall not be prepared and releases shall not be distributed by the board department in connection with these statements.
(k) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board
department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a feepayer or other person liable for the fee.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made a false statement, relating to the estate or financial condition of the feepayer or other person liable for the fee.
(2) The feepayer fails to comply with any of the terms and conditions relative to the offer.
(l) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with
the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a feepayer or other person liable in respect of the fee.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the feepayer or other person liable in respect of the fee.
(m) For purposes of this section, “person” means the feepayer, a member of the feepayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the feepayer, or another corporation or entity owned or controlled by the feepayer, directly or indirectly, or that owns or controls the feepayer, directly or indirectly.
(n) This section shall become operative on January 1, 2023. 2028.
SEC. 81.
Section 50111.5 is added to the Revenue and Taxation Code, to read:50111.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 82.
Section 50112.2 of the Revenue and Taxation Code is amended to read:50112.2.
(a) If the(b) Except as provided in subdivision (c),
subdivisions (c) and (d),
any person seeking to be relieved of the penalty shall file with the board department a statement, under penalty of perjury, setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The department may grant relief of the penalty for any person
in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.
SEC. 83.
Section 50112.3 of the Revenue and Taxation Code is amended to read:50112.3.
(a) If the(b) Any Except as provided in subdivision (c), any person
seeking to be relieved of the interest provided by Sections 50111, 50112, and 50112.7 shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The department may grant relief of the
interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 84.
Section 50136 of the Revenue and Taxation Code is amended to read:50136.
(a) The(b) The person served shall continue
to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service of the notice of levy on the person and
prior to the expiration of the levy.
(d) For the purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for services of independent contractors, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the feepayer or other person liable for the fee.
(3) Any other payments or credits due or becoming due the feepayer or other
person liable as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the feepayer and shall be delivered or mailed
delivered, mailed, or served by electronic transmission or other electronic technology to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 85.
Section 50139 of the Revenue and Taxation Code is amended to read:50139.
(a) If the(b) Any proposed determination by the board department that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that
determination.
SEC. 86.
Section 50151 of the Revenue and Taxation Code is amended to read:50151.
(a) If any amount has been illegally determined, the(b) Any proposed
determination by the board
department that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination.
SEC. 87.
Section 50156.15 of the Revenue and Taxation Code is amended to read:50156.15.
(a) At least 30 days prior to the filing or recording of liens 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, the(b) The preliminary notice required by this section shall not be required with respect to jeopardy determinations issued under Article 4 (commencing with Section 50120.1) of Chapter 3.
(c) If the board department determines that the filing of a lien was in error, it shall mail a release to the fee payer and the entity recording the lien as soon as possible, but no later than seven days, after this determination and receipt of lien
recording information. The release shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the board department shall immediately issue a release of lien to the fee payer and the entity recording the lien.
(d) When the board department
releases a lien that has been erroneously filed, notice of that release shall be mailed to the fee payer and, upon the request of the fee payer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(e) (1) The board department may release or subordinate a lien if the board department determines that the release
any of the following:
(A) Release or subordination will facilitate the collection of the fee liability or
(B) Release or subordination will be in the best interest of the state and the fee payer.
(C) Release or subordination will be in the best interest
of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 88.
Section 50156.18 of the Revenue and Taxation Code, as amended by Section 13 of Chapter 272 of the Statutes of 2017, is amended to read:50156.18.
(a)(2)Except as provided in paragraph (3), the board, upon
recommendation by its executive director and chief counsel, jointly, may compromise a final fee liability involving a reduction in the fee in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final fee liability in which the reduction of the fee is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final fee liability” means any final fee liability arising under Part 26 (commencing with
Section 50101), or related interest, additions to the fee, penalties, or other amounts assessed under this part.
(c) (1) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the feepayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(2) Notwithstanding paragraph (1), a qualified final fee liability may be compromised regardless of whether the business has been discontinued or transferred or whether the feepayer has a controlling interest or association with a similar type of business as the transferred or discontinued business. All other provisions of this section that apply to a final fee
liability shall also apply to a qualified final fee liability, and a compromise shall not be made under this subdivision unless all other requirements of this section are met. For purposes of this subdivision, a “qualified final fee liability” means that part of a final fee liability, including related interest, additions to the fee, penalties, or other amounts assessed under this part, arising from a transaction or transactions in which the board department finds no evidence that the owner of the underground storage tank collected underground storage tank maintenance fee reimbursement from the operator of the underground storage tank or other person and which was determined against the feepayer under Article 2 (commencing with Section 50113) or Article 3 (commencing with Section 50114) of Chapter 3.
(3) A qualified final fee liability may not be compromised with any of the following:
(A) A feepayer who previously received a compromise under paragraph (2) for a liability, or a part thereof, arising from a transaction or transactions that are substantially similar to the transaction or transactions attributable to the liability for which the feepayer is making the offer.
(B) A business that was transferred by a feepayer who previously received a compromise under paragraph (2) and who has a controlling interest or association with the transferred business, when the liability for which the offer is made is attributable to a transaction or transactions substantially similar to the transaction or transactions for which the feepayer’s liability was previously compromised.
(C) A business in which a feepayer who previously received a compromise under paragraph (2) has a controlling interest or association with a similar type of business for which the feepayer received the compromise, when the liability of the business making the offer arose from a transaction or transactions substantially similar to the transaction or transactions for which the feepayer’s liability was previously compromised.
(d) The board department may, in its discretion, enter into a written agreement which
that permits the feepayer to pay the compromise in installments for a period not exceeding one year. The agreement may provide that such installments shall be paid by electronic funds transfers or any other means to facilitate the payment of each installment.
(e)Except for any recommendation for approval as specified in subdivision (a), the members of the State Board of Equalization shall not participate in any offer in compromise matters pursuant to this section.
(f)
(e) A feepayer that has received a
compromise under paragraph (2) of subdivision (c) may be required to enter into any collateral agreement that is deemed necessary for the protection of the interests of the state. A collateral agreement may include a provision that allows the board department to reestablish the liability, or any portion thereof, if the feepayer has sufficient annual income during the succeeding five-year period. The board department shall establish criteria for determining “sufficient annual income” for purposes of this subdivision.
(g)
(f) A feepayer that has received a compromise under paragraph (2) of subdivision (c) shall file and pay by the due date all subsequently required underground storage tank maintenance fee returns for a five-year period from the date the liability is compromised, or until the feepayer is no longer required to file underground storage tank maintenance fee returns, whichever period is earlier.
(h)
(g) For amounts to be compromised under this section, the following conditions shall exist:
(1) The feepayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the feepayer’s present assets or income.
(B) The feepayer does not have reasonable prospects of acquiring increased income or assets that would enable the feepayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board department shall have determined that acceptance of the compromise is in the best interest of the state.
(i)
(h) A determination by the board department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final fee liability shall not be subject to administrative appeal or judicial review.
(j)
(i) When an offer in compromise is either accepted or rejected, or the terms
and conditions of a compromise agreement are fulfilled, the board
department shall notify the feepayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the feepayer.
(k)
(j) When more than one feepayer is liable for the debt, such as with spouses or partnerships or other business combinations, the acceptance of an offer in compromise from one liable feepayer shall not relieve the other feepayers from paying the entire liability. However, the amount of the liability shall be reduced by the amount of the accepted offer.
(l)
(k) Whenever a compromise of the fee or penalties or total fees and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the feepayer.
(2) The amount of unpaid fees and related penalties,
additions to fees, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the feepayer or violate the confidentiality provisions of Chapter 8 (commencing with Section 50159). A list shall not be prepared and releases shall not be distributed by the board department in connection with these statements.
(m)
(l) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished (without regard to any statute of limitations that otherwise may be applicable), and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a feepayer or other person liable for the fee.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record or made a false statement, relating to the estate or financial condition of the feepayer or other person liable for the fee.
(2) The feepayer fails to comply with any of the terms and conditions relative to the offer.
(n)
(m) A person who, in connection with an offer or compromise under this section, or offer of that compromise to
enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a feepayer or other person liable in respect of the fee.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the feepayer or other person liable in respect of the fee.
(o)
(n) For purposes of this section, “person” means the feepayer, a member of the feepayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the feepayer, or another corporation or entity owned or controlled by the feepayer, directly or indirectly, or that owns or controls the feepayer, directly or indirectly.
(p)
(o) This section shall remain in effect only until January 1, 2023,
2028, and as of that date is repealed.
SEC. 89.
Section 50156.18 of the Revenue and Taxation Code, as amended by Section 14 of Chapter 272 of the Statutes of 2017, is amended to read:50156.18.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation by its executive director and chief counsel, jointly, may compromise a final fee liability involving a reduction in the fee in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final
fee liability in which the reduction of the fee is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final fee liability” means any final fee liability arising under Part 26 (commencing with Section 50101), or related interest, additions to the fee, penalties, or other amounts assessed under this part.
(c) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the feepayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(d) For amounts to be
compromised under this section, the following conditions shall exist:
(1) The feepayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the feepayer’s present assets or income.
(B) The feepayer does not have reasonable prospects of acquiring increased income or assets that would enable the feepayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board department shall have determined that acceptance of the compromise is in the best
interest of the state.
(e) A determination by the board department
that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final fee liability shall not be subject to administrative appeal or judicial review.
(f) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board department shall notify the feepayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the feepayer.
(g) When more than one feepayer is liable for the debt, such as with spouses or partnerships or other business combinations, the acceptance of an offer in
compromise from one liable feepayer shall not relieve the other feepayers from paying the entire liability. However, the amount of the liability shall be reduced by the amount of the accepted offer.
(h) Whenever a compromise of the fee or penalties or total fees and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for a least one year in the office of the executive director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the feepayer.
(2) The amount of unpaid fees and related penalties, additions to fees, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the feepayer or violate the confidentiality provisions of Chapter 8 (commencing with Section 50159). A list shall not be prepared and releases shall not be distributed by the board
department in connection with these statements.
(i) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished (without regard to any statute of limitations that otherwise may be applicable), and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a feepayer or other person liable for the fee.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made any false statement, relating to the estate or financial condition of the feepayer or other person liable for the fee.
(2) The feepayer fails to comply with any of the terms and conditions relative to the offer.
(j) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together
with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a feepayer or other person liable in respect of the fee.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the feepayer or other person liable in respect of the fee.
(k) For purposes of this section, “person” means the feepayer, a member of the feepayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the feepayer, or another corporation or entity owned or controlled by the feepayer, directly or indirectly, or that owns or controls the feepayer, directly or indirectly.
(l) This section shall become operative on January 1, 2023. 2028.
SEC. 90.
Section 55041.5 is added to the Revenue and Taxation Code, to read:55041.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 91.
Section 55044 of the Revenue and Taxation Code is amended to read:55044.
(a) If the department finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person may be relieved of the penalty provided by Sections 34013, 55042, 55050, and 55086.(b) Except as provided in subdivision (c), subdivisions (c) and (d), any person seeking to be relieved of the penalty shall file with the department a statement, under penalty of perjury, setting forth the facts upon which he or she
the person bases his or her the claim for relief.
(c) The department may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.
SEC. 92.
Section 55046.5 of the Revenue and Taxation Code is amended to read:55046.5.
(a) If theAny
(b) Except as provided in subdivision (c), any person seeking to be relieved of the interest shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases his or her the claim for relief.
(c) The department may grant relief of the interest for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 93.
Section 55205 of the Revenue and Taxation Code is amended to read:55205.
(a) The(b) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service of the notice of levy on the person and prior to the expiration of the levy.
(c) For the purposes of this section, the term “payments” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. The term “payments” does include any of the following:
(1) Payments due for
services of independent contractors, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Payments or credits due or becoming due periodically as a result of an enforceable obligation to the feepayer or other person liable for the fee.
(3) Any other payments or credits due or becoming due the feepayer or other person liable as the result of written or oral contracts for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(d) In the case of a financial institution, to be effective, the notice shall state the amount due from the feepayer and shall be delivered or mailed
delivered, mailed, or served by electronic transmission or other electronic technology, to the branch office of the financial institution where the credits or other property are held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 94.
Section 55221 of the Revenue and Taxation Code is amended to read:55221.
(a) If the(b) Any proposed determination by the board department that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to
after the effective date of that determination.
SEC. 95.
Section 55281 of the Revenue and Taxation Code is amended to read:55281.
(a) If any amount has been illegally determined, either by the person filing the return or by the(b) Any proposed determination by the board department that is in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to after the effective date of that determination.
SEC. 96.
Section 55332.5 of the Revenue and Taxation Code, as amended by Section 15 of Chapter 272 of the Statutes of 2017, is amended to read:55332.5.
(a)(2)Except as provided in paragraph (3), the board, upon
recommendation by its executive director and chief counsel, jointly, may compromise a final fee liability involving a reduction in fees in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final fee liability in which the reduction of fees is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final fee liability” means any final fee liability arising under Part 30 (commencing with Section
55001), or related interest, additions to fees, penalties, or other amounts assessed under this part.
(c) (1) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the feepayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(2) Notwithstanding paragraph (1), a qualified final fee liability may be compromised regardless of whether the business has been discontinued or transferred or whether the feepayer has a controlling interest or association with a similar type of business as the transferred or discontinued business. All other provisions of this section that apply to a final fee liability shall
also apply to a qualified final fee liability, and a compromise shall not be made under this subdivision unless all other requirements of this section are met. For purposes of this subdivision, a “qualified final fee liability” means that part of a final fee liability, including related interest, additions to fees, penalties, or other amounts assessed under this part, arising from a transaction or transactions in which the board department finds no evidence that the feepayer collected the fee from the purchaser or other person and which was determined against the feepayer under Article 2 (commencing with Section 55061) or Article 3 (commencing with Section 55081) of Chapter 3.
(3) A qualified final fee liability may not be compromised with any of the
following:
(A) A feepayer who previously received a compromise under paragraph (2) for a liability, or a part thereof, arising from a transaction or transactions that are substantially similar to the transaction or transactions attributable to the liability for which the feepayer is making the offer.
(B) A business that was transferred by a feepayer who previously received a compromise under paragraph (2) and who has a controlling interest or association with the transferred business, when the liability for which the offer is made is attributable to a transaction or transactions substantially similar to the transaction or transactions for which the feepayer’s liability was previously compromised.
(C) A business in which a feepayer who previously received a compromise under paragraph (2) has a controlling interest or
association with a similar type of business for which the feepayer received the compromise, when the liability of the business making the offer arose from a transaction or transactions substantially similar to the transaction or transactions for which the feepayer’s liability was previously compromised.
(d) The board department may, in its discretion, enter into a written agreement which that permits the feepayer to pay the compromise in installments for a period not exceeding one year. The agreement may provide that such installments shall be paid by electronic funds
transfers or any other means to facilitate the payment of each installment.
(e)Except for any recommendation for approval as specified in subdivision (a), the members of the State Board of Equalization shall not participate in any offer in compromise matters pursuant to this section.
(f)
(e) A feepayer that has received a compromise under paragraph (2) of subdivision (c) may be required to enter into any collateral agreement that is deemed necessary for the protection of the interests of the state. A collateral agreement may include a provision that
allows the board department to reestablish the liability, or any portion thereof, if the feepayer has sufficient annual income during the succeeding five-year period. The board department shall establish criteria for determining “sufficient annual income” for purposes of this subdivision.
(g)
(f) A
feepayer that has received a compromise under paragraph (2) of subdivision (c) shall file and pay by the due date all subsequently required returns for a five-year period from the date the liability is compromised, or until the feepayer is no longer required to file returns, whichever period is earlier.
(h)
(g) Offers in compromise shall not be considered where the feepayer has been convicted of felony tax evasion under this part during the liability period.
(i)
(h) For amounts to be compromised under this section, the following conditions shall exist:
(1) The feepayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the feepayer’s present assets or income.
(B) The feepayer does not have reasonable prospects of acquiring increased income or assets that would enable the feepayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board department shall have determined that
acceptance of the compromise is in the best interest of the state.
(j)
(i) A determination by the board
department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final fee liability shall not be subject to administrative appeal or judicial review.
(k)
(j) (1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of the unpaid fee and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the feepayer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to
partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the feepayer.
(l )When
(k) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board department shall notify the feepayer in writing. In the event an
offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the feepayer.
(m)
(l) When more than one feepayer is liable for the debt, such as with spouses or partnerships or other business combinations, including, but not limited to, feepayers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable feepayer shall reduce the amount of the liability of the other feepayers by the amount of the accepted offer.
(n)
(m) Whenever a compromise of fees or penalties or total fees and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board
department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the feepayer.
(2) The amount of unpaid fees and related penalties, additions to fees, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the feepayer or violate the confidentiality provisions of Section 55381. A list shall not
be prepared and releases shall not be distributed by the board
department in connection with these statements.
(o)
(n) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person
did any of the following acts regarding the making of the offer:
(A) Concealed from the board department property belonging to the estate of a feepayer or other person liable for the fee.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record or made a false statement, relating to the estate or financial condition of the feepayer or other person liable for the fee.
(2) The feepayer fails to comply with any of the terms and conditions relative to the offer.
(p)
(o) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a feepayer or other person liable in respect of the fee.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or
financial condition of the feepayer or other person liable in respect of the fee.
(q)
(p) For purposes of this section, “person” means the feepayer, a member of the feepayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the feepayer, or another corporation or entity owned or controlled by the feepayer, directly or indirectly, or that owns or controls the feepayer, directly or indirectly.
(r)
(q) This section shall remain in effect only until January 1, 2023, 2028, and as of that date is repealed.
SEC. 97.
Section 55332.5 of the Revenue and Taxation Code, as amended by Section 16 of Chapter 272 of the Statutes of 2017, is amended to read:55332.5.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation by its executive director and chief counsel, jointly, may compromise a final fee liability involving a reduction in fees in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final fee
liability in which the reduction of fees is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final fee liability” means any final fee liability arising under Part 30 (commencing with Section 55001), or related interest, additions to fees, penalties, or other amounts assessed under this part.
(c) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the feepayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(d) Offers in compromise shall not
be considered where the feepayer has been convicted of felony tax evasion under this part during the liability period.
(e) For amounts to be compromised under this section, the following conditions shall exist:
(1) The feepayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the feepayer’s present assets or income.
(B) The feepayer does not have reasonable prospects of acquiring increased income or assets that would enable the feepayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board
department shall have determined that acceptance of the compromise is in the best interest of the state.
(f) A determination by the board
department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final fee liability shall not be subject to administrative appeal or judicial review.
(g) (1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of the unpaid fee and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the feepayer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the feepayer.
(h) When an offer in compromise is either accepted or rejected, or the terms and conditions of
a compromise agreement are fulfilled, the board
department shall notify the feepayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the feepayer.
(i) When more than one feepayer is liable for the debt, such as with spouses or partnerships or other business combinations, including, but not limited to, feepayers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable feepayer shall reduce the amount of the liability of the other feepayers by the amount of the accepted offer.
(j) Whenever a compromise of fees or penalties or total fees and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive
director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the feepayer.
(2) The amount of unpaid fees and related penalties, additions to fees, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work,
apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the feepayer or violate the confidentiality provisions of Section 55381. A list shall not be prepared and releases shall not be distributed by the board department in connection with these statements.
(k) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board
department determines that a person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a feepayer or other person liable for the fee.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made any false statement, relating to the estate or financial condition of the feepayer or other person liable for the fee.
(2) The feepayer fails to comply with any of the terms and conditions relative to the offer.
(l) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together
with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a feepayer or other person liable in respect of the fee.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the feepayer or other person liable in respect of the fee.
(m) For purposes of this section, “person” means the feepayer, a member of the feepayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the feepayer, or another corporation or entity owned or controlled by the feepayer, directly or indirectly, or that owns or controls the feepayer, directly or indirectly.
(n) This section shall become operative on January 1, 2023. 2028.
SEC. 98.
Section 55336 of the Revenue and Taxation Code is amended to read:55336.
(a) At least 30 days prior to the filing or recording of liens 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, the(b) The preliminary notice required by this section shall not apply to jeopardy determinations issued under Article 4 (commencing with Section 55101) of Chapter 3.
(c) If the board department determines that filing a lien was in error, it shall mail a release to the taxpayer and the entity recording the lien as soon as possible, but not later than seven days, after this determination and receipt of lien recording information. The release
shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the board department shall immediately issue a release of lien to the taxpayer and the entity recording the lien.
(d) When the board department releases a lien erroneously filed, notice of that fact shall be mailed to the taxpayer and, upon the request of the taxpayer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(e) (1) The board
department may release or subordinate a lien if the board department determines that the release any of the following:
(A) Release or subordination will facilitate the collection of the tax liability or
liability.
(B) Release or subordination will be in the best interest of the state and the taxpayer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 99.
Section 60208.5 is added to the Revenue and Taxation Code, to read:60208.5.
(a) If the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three months, for making any report or return or paying any tax required under this part for any person in an area identified in the state of emergency proclamation.(b) If the department makes an extension pursuant to subdivision (a), any person in an area identified in a state of emergency proclamation shall not be required to file a request for the extension.
SEC. 100.
Section 60209 of the Revenue and Taxation Code is amended to read:60209.
(a) If the(b) Except as provided in subdivision (c),
subdivisions (c) and (d),
any person seeking to be relieved of the penalty shall file with the board a statement under penalty of perjury setting forth the facts upon which he or she the person bases the claim for relief.
(c) The department may grant relief of the penalty for any person in an area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
(c)
(d) The board department shall establish criteria that provide for efficient resolution of requests for relief pursuant to this section.
SEC. 101.
Section 60211 of the Revenue and Taxation Code is amended to read:60211.
(a) If theAny
(b) Except as provided in subdivision (c), person seeking to be relieved of the interest shall file with the board department a statement under penalty of perjury setting forth the facts upon which he or she the person bases the claim for relief.
(c) The department may grant relief of the interest for any person in an
area identified in a state of emergency proclamation made by the Governor for the period the state of emergency proclamation is effective, regardless of whether the person has filed a statement with the department pursuant to subdivision (b).
SEC. 102.
Section 60407 of the Revenue and Taxation Code is amended to read:60407.
(a) Subject to the limitations in subdivisions (b) and (c), the(b) The person served shall continue to withhold pursuant to the notice of levy until the amount specified in the notice, including accrued interest, has been paid in full, until the notice is withdrawn, or until one year from the date the notice is received, whichever occurs first.
(c) The amount required to be withheld is the lesser of the following:
(1) The amount due stated on the notice.
(2) The sum of both of the following:
(A) The amount of the payments, credits other than payments, or personal property described above and under the person’s possession or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service of the notice of levy on the person and prior to the expiration of the levy.
(d) For the purposes of this section, “payment” does not include earnings as that term is defined in subdivision (a) of Section 706.011 of the Code of Civil Procedure or funds in a deposit account as
defined in paragraph (29) of subdivision (a) of Section 9102 of the Commercial Code. “Payment” does include any of the following:
(1) Any payment due for services of an independent contractor, dividends, rents, royalties, residuals, patent rights, or mineral or other natural rights.
(2) Any payment or credit due or becoming due periodically as the result of an enforceable obligation to the person liable for the tax.
(3) Any other payment or credit due or becoming due the person liable as the result of a written or oral contract for services or sales whether denominated as wages, salary, commission, bonus, or otherwise.
(e) In the case of a financial institution, to be effective, the notice shall state the amount due from the taxpayer and shall be delivered or mailed
delivered, mailed, or served by electronic transmission or other electronic technology to the branch or office of the financial institution where the credits or other property is held, unless another branch or office is designated by the financial institution to receive the notice.
SEC. 103.
Section 60521 of the Revenue and Taxation Code is amended to read:60521.
If theFor any amount exceeding fifty thousand dollars ($50,000), the board’s proposed department’s determination under this section shall be available as a public record for at least 10 days prior to after the effective date of the determination.
SEC. 104.
Section 60581 of the Revenue and Taxation Code is amended to read:60581.
If any amount has been illegally determined either by the person filing the return or by theFor any amount exceeding fifty thousand dollars ($50,000), the board’s proposed
department’s determination under this section shall be available as a public record for at least 10 days prior to after the effective date of the determination.
SEC. 105.
Section 60633.2 of the Revenue and Taxation Code is amended to read:60633.2.
(a) At least 30 days prior to the filing or recording of liens 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, the(b) The preliminary notice required by this action shall not apply to jeopardy determinations issued under Article 4 (commencing with Section 60330) of Chapter 6.
(c) If the board department determines that filing a lien was in error, it shall mail a release to the taxpayer and the entity recording the lien as soon as possible, but no later than seven days, after this determination and receipt of lien recording information. The
release shall contain a statement that the lien was filed in error. In the event the erroneous lien is obstructing a lawful transaction, the board department shall immediately issue a release of lien to the taxpayer and the entity recording the lien.
(d) When the board department releases a lien erroneously filed, notice of that fact shall be mailed to the taxpayer and, upon the request of the taxpayer, a copy of the release shall be mailed to the major credit reporting companies in the county where the lien was filed.
(e) (1) The board
department may release or subordinate a lien if the board department determines that the release
(A) Release or subordination will facilitate the collection of the tax liability or
(B) Release or subordination will be in the best interest of the state and the taxpayer.
(C) Release or subordination will be in the best interest of the state and another person that is not the taxpayer but that holds an interest with the taxpayer in the property that is subject to the lien.
(2) The amendments added to this subdivision do not constitute a change in, and are declaratory of, existing law.
SEC. 106.
Section 60637 of the Revenue and Taxation Code, as amended by Section 17 of Chapter 272 of the Statutes of 2017, is amended to read:60637.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation
by its executive director and chief counsel, jointly, may compromise a final tax liability involving a reduction in tax in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final tax liability in which the reduction of tax is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final tax liability” means any final tax liability arising under Part 31 (commencing with Section 60001), or related
interest, additions to tax, penalties, or other amounts assessed under this part.
(c) (1) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the taxpayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(2) Notwithstanding paragraph (1), a qualified final tax liability may be compromised regardless of whether the business has been discontinued or transferred or whether the taxpayer has a controlling interest or association with a similar type of business as the transferred or discontinued business. All other provisions of this section that apply to a final tax liability shall also apply to a
qualified final tax liability, and a compromise shall not be made under this subdivision unless all other requirements of this section are met. For purposes of this subdivision, a “qualified final tax liability” means any of the following:
(A) That part of a final tax liability, including related interest, additions to tax, penalties, or other amounts assessed under this part, arising from a transaction or transactions in which the board department finds no evidence that the supplier collected diesel fuel tax reimbursement from the purchaser or other person and which was determined by the board
department against the taxpayer under Article 2 (commencing with Section 60301), Article 3 (commencing with Section 60310), Article 5 (commencing with Section 60350), or Article 6 (commencing with Section 60360) of Chapter 6.
(B) A final tax liability, including related interest, additions to tax, penalties, or other amounts assessed under this part, arising under Article 6 (commencing with Section 60471) of Chapter 7.
(C) That part of a final tax liability for diesel fuel tax, including related interest, additions to tax, penalties, or other amounts assessed under this part, determined under Article 2 (commencing with Section 60301), Article 3 (commencing with Section 60310), Article 5 (commencing with Section 60350), and Article 6 (commencing with Section 60360) of Chapter 6 against an exempt bus operator, government entity, or qualified
highway vehicle operator who used dyed diesel fuel on the highway.
(3) A qualified final tax liability may not be compromised with any of the following:
(A) A taxpayer who previously received a compromise under paragraph (2) for a liability, or a part thereof, arising from a transaction or transactions that are substantially similar to the transaction or transactions attributable to the liability for which the taxpayer is making the offer.
(B) A business that was transferred by a taxpayer who previously received a compromise under paragraph (2) and who has a controlling interest or association with the transferred business, when the liability for which the offer is made is attributable to a transaction or transactions substantially similar to the transaction or transactions for which the taxpayer’s liability was
previously compromised.
(C) A business in which a taxpayer who previously received a compromise under paragraph (2) has a controlling interest or association with a similar type of business for which the taxpayer received the compromise, when the liability of the business making the offer arose from a transaction or transactions substantially similar to the transaction or transactions for which the taxpayer’s liability was previously compromised.
(d) The board department may, in its discretion, enter into a written agreement which
that permits the taxpayer to pay the compromise in installments for a period not exceeding one year. The agreement may provide that such installments shall be paid by electronic funds transfers or any other means to facilitate the payment of each installment.
(e)Except for any recommendation for approval as specified in subdivision (a), the members of the State Board of Equalization shall not participate in any offer in compromise matters pursuant to this section.
(f)
(e) A taxpayer that has received a
compromise under paragraph (2) of subdivision (c) may be required to enter into any collateral agreement that is deemed necessary for the protection of the interests of the state. A collateral agreement may include a provision that allows the board department to reestablish the liability, or any portion thereof, if the taxpayer has sufficient annual income during the succeeding five-year period. The board department shall establish criteria for determining “sufficient annual income” for purposes of this subdivision.
(g)
(f) A taxpayer that has received a compromise under paragraph (2) of subdivision (c) shall file and pay by the due date all subsequently required returns for a five-year period from the date the liability is compromised, or until the taxpayer is no longer required to file returns, whichever period is earlier.
(h)
(g) Offers in compromise shall not be considered where the taxpayer has been convicted of felony tax evasion under this part during the liability period.
(i)
(h) For amounts to be compromised under this section, the following conditions shall exist:
(1) The taxpayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the taxpayer’s present assets or income.
(B) The taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board
department shall have determined that acceptance of the compromise is in the best interest of the state.
(j)
(i) A determination by the board department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final tax liability shall not be subject to administrative appeal or judicial review.
(k)
(j) (1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of the unpaid tax and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the taxpayer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the taxpayer.
(l)
(k) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board department shall notify the taxpayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the taxpayer.
(m)
(l) When more than one taxpayer is liable for the debt, such as with spouses or partnerships or other business combinations, including, but
not limited to, taxpayers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable taxpayer shall reduce the amount of the liability of the other taxpayers by the amount of the accepted offer.
(n)
(m) Whenever a compromise of tax or penalties or total tax and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board
department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the taxpayer.
(2) The amount of unpaid tax and related penalties, additions to tax, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the taxpayer or violate the confidentiality provisions of Section 60609. A list shall not
be prepared and releases shall not be distributed by the board
department in connection with these statements.
(o)
(n) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board department determines that a person
did any of the following acts regarding the making of the offer:
(A) Concealed from the board department property belonging to the estate of a taxpayer or other person liable for the tax.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record or made a false statement, relating to the estate or financial condition of the taxpayer or other person liable for the tax.
(2) The taxpayer fails to comply with any of the terms and conditions relative to the offer.
(p)
(o) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a taxpayer or other person liable in respect of the tax.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or
financial condition of the taxpayer or other person liable in respect of the tax.
(q)
(p) For purposes of this section, “person” means the taxpayer, a member of the taxpayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the taxpayer, or another corporation or entity owned or controlled by the taxpayer, directly or indirectly, or that owns or controls the taxpayer, directly or indirectly.
(r)
(q) This section shall remain in effect only until January 1, 2023, 2028, and as of that date is repealed.
SEC. 107.
Section 60637 of the Revenue and Taxation Code, as amended by Section 18 of Chapter 272 of the Statutes of 2017, is amended to read:60637.
(a)(2)Except as provided in paragraph (3), the board, upon recommendation by its executive director and chief counsel, jointly, may compromise a final tax liability involving a reduction in tax in excess of seven thousand five hundred dollars ($7,500). A recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final tax
liability in which the reduction of tax is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b) For purposes of this section, “a final tax liability” means any final tax liability arising under Part 31 (commencing with Section 60001), or related interest, additions to tax, penalties, or other amounts assessed under this part.
(c) Offers in compromise shall be considered only for liabilities that were generated from a business that has been discontinued or transferred, where the taxpayer making the offer no longer has a controlling interest or association with the transferred business or has a controlling interest or association with a similar type of business as the transferred or discontinued business.
(d) Offers in compromise shall not be
considered where the taxpayer has been convicted of felony tax evasion under this part during the liability period.
(e) For amounts to be compromised under this section, the following conditions shall exist:
(1) The taxpayer shall establish that:
(A) The amount offered in payment is the most that can be expected to be paid or collected from the taxpayer’s present assets or income.
(B) The taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2) The board
department shall have determined that acceptance of the compromise is in the best interest of the state.
(f) A determination by the board
department that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final tax liability shall not be subject to administrative appeal or judicial review.
(g) (1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of the unpaid tax and fraud or evasion penalty.
(2) The minimum offer may be waived if it can be shown that the taxpayer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the taxpayer.
(h) When an offer in compromise is either accepted or rejected, or the terms and conditions of
a compromise agreement are fulfilled, the board
department shall notify the taxpayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the taxpayer.
(i) When more than one taxpayer is liable for the debt, such as with spouses or partnerships or other business combinations, including, but not limited to, taxpayers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable taxpayer shall reduce the amount of the liability of the other taxpayers by the amount of the accepted offer.
(j) Whenever a compromise of tax or penalties or total tax and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive
director of the board department a public record with respect to that compromise. The public record shall include all of the following information:
(1) The name of the taxpayer.
(2) The amount of unpaid tax and related penalties, additions to tax, interest, or other amounts involved.
(3) The amount offered.
(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work,
apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the taxpayer or violate the confidentiality provisions of Section 60609. A list shall not be prepared and releases shall not be distributed by the board department in connection with these statements.
(k) A compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1) The board
department determines that any person did any of the following acts regarding the making of the offer:
(A) Concealed from the board
department property belonging to the estate of a taxpayer or other person liable for the tax.
(B) Received, withheld, destroyed, mutilated, or falsified a book, document, or record, or made any false statement, relating to the estate or financial condition of the taxpayer or other person liable for the tax.
(2) The taxpayer fails to comply with any of the terms and conditions relative to the offer.
(l) A person who, in connection with an offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together
with the costs of investigation and prosecution:
(1) Conceals from an officer or employee of this state property belonging to the estate of a taxpayer or other person liable in respect of the tax.
(2) Receives, withholds, destroys, mutilates, or falsifies a book, document, or record, or makes a false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax.
(m) For purposes of this section, “person” means the taxpayer, a member of the taxpayer’s family, a corporation, agent, fiduciary, or representative of, or another individual or entity acting on behalf of, the taxpayer, or another corporation or entity owned or controlled by the taxpayer, directly or indirectly, or that owns or controls the taxpayer, directly or indirectly.
(n) This section shall become operative on January 1, 2023. 2028.
SEC. 108.
The Legislature finds and declares that Sections 5, 6, 13, 14, 19, 20, 30, 31, 39, 40, 44, 45, 52, 53, 62, 63, 69, 70, 76, 77, 85, 86, 94, 95, 103, and 104 of this act, which amend Sections 6901, 6981, 8126, 8191, 9151, 9196, 30361, 30421, 38601, 38631, 40111, 40121, 41100, 41107, 43451, 43491, 45651, 45801, 46501, 46551, 50139, 50151, 55221, 55281, 60521, and 60581 of the Revenue and Taxation Code, impose a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:The state has a very strong interest in ensuring the timely refund and cancellation of taxation amounts illegally determined by the person filing the return or by the department. In order to protect this interest, it is necessary to allow the California Department of Tax and Fee Administration to make these determinations available as public records for amounts in excess of fifty thousand dollars ($50,000) for at least 10 days after the effective date of the determination.
