BILL NUMBER: AB 2480	CHAPTERED  08/23/04

	CHAPTER  267
	FILED WITH SECRETARY OF STATE  AUGUST 23, 2004
	APPROVED BY GOVERNOR  AUGUST 23, 2004
	PASSED THE SENATE  JULY 29, 2004
	PASSED THE ASSEMBLY  MAY 25, 2004
	AMENDED IN ASSEMBLY  APRIL 15, 2004

INTRODUCED BY   Assembly Member Campbell

                        FEBRUARY 19, 2004

   An act to repeal and add Section 19170 of the Revenue and Taxation
Code, relating to taxation, and declaring the urgency thereof, to
take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2480, Campbell.  Personal income tax and corporation tax:
administration:  e-filing.
   Existing law imposes an income tax on individuals, businesses, and
corporations.  The Franchise Tax Board is the agency responsible for
the collection and administration of these income taxes.  Effective
for income tax returns filed on or after January 1, 2004, all
individual income tax returns prepared by specified income tax
preparers that, during the prior calendar year, prepared more than
100 personal income tax forms, are required to be electronically
filed in the subsequent calendar year, and each calendar year
thereafter.  Existing law imposes a penalty on a subject income tax
preparer in the amount of $50 for each personal income tax return
that does not comply with this requirement.
   This bill would repeal the penalty provision effective January 1,
2004, and would, instead, impose a similar penalty on specified
income tax preparers for failure to file specified tax returns
electronically on or after January 1, 2005.
   This bill would declare that it is to take effect immediately as
an urgency statute.


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


  SECTION 1.  Section 19170 of the Revenue and Taxation Code is
repealed.
  SEC. 2.  Section 1 of this act is operative January 1, 2004.
  SEC. 3.  Section 19170 is added to the Revenue and Taxation Code,
to read:
   19170.  (a) An income tax preparer that is subject to Section
18621.9 is liable for a penalty in the amount of fifty dollars ($50)
for each acceptable individual income tax return prepared by that
income tax preparer that is not electronically filed, unless it is
shown that the failure to electronically file that acceptable
individual income tax return is due to reasonable cause and not due
to willful neglect.
   (b) For purposes of this section, reasonable cause includes, but
is not limited to, a taxpayer's election not to electronically file
an acceptable individual income tax return in compliance with Section
18621.9.
   (c) This section shall apply to acceptable individual income tax
returns required to be filed on or after January 1, 2005.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to provide income tax preparers, that are subject to a
penalty for each acceptable individual income tax return not filed
electronically, with adequate time to comply with the new
requirements for electronic filing of income tax returns, it is
necessary that this act take effect immediately.