BILL ANALYSIS Ó
AB 2686
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CONCURRENCE IN SENATE AMENDMENTS
AB 2686 (Revenue and Taxation Committee)
As Amended August 14, 2012
Majority vote
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|ASSEMBLY: |73-0 |(May 10, 2012) |SENATE: |36-0 |(August 22, |
| | | | | |2012) |
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Original Committee Reference: REV. & TAX.
SUMMARY : Re-enacts prior law authorizing the Taxpayers' Rights
Advocate (Advocate) to relieve taxpayers from penalties, fees,
additions to tax, and interest attributable to the Franchise Tax
Board's (FTB) erroneous actions, as specified.
The Senate amendments require the FTB's Executive Officer,
instead of the Chief Counsel, to concur with the Advocate for
relief in excess of $500, limit the total amount of relief that
can be granted to $7,500, and add a repeal date of January 1,
2016.
AS PASSED BY THE ASSEMBLY , this bill:
1)Permanently authorized the Advocate, on and after January 1,
2013, to review a taxpayer's application for relief, as
specified, and to abate any penalties, fees, additions to tax,
or interest assessed on a taxpayer, provided that the
penalties, fees, additions to tax, or interest are
attributable to any of the following:
a) Erroneous action or inaction by the FTB in processing
documents filed or payments made by taxpayers;
b) Unreasonable delay caused by the FTB; or,
c) Erroneous written advice that does not qualify for
relief under Chief Counsel authority ÝRevenue and Taxation
Code Section 21012].
2)Specified that relief may be granted only if both of the
following conditions are met:
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a) No significant aspect of that error or delay is
attributed to the taxpayer involved; and,
b) Relief is not available under any other provision of the
Personal Income Tax Law or the Corporation Tax Law,
including any relief granted under any regulation or other
FTB administrative pronouncement.
3)Required any relief in which the total reduction exceeds $500
to be submitted to FTB's Chief Counsel for concurrence.
Requires the Chief Counsel to notify the FTB if the total
amount of the relief granted exceeds $7,500.
4)Authorized the FTB to adjust the $7,500 amount for inflation,
as specified.
5)Provided that a public record with respect to a relief granted
shall be placed on file in the office of the FTB's executive
officer. Requires the public record to include all of the
following information:
a) The taxpayer's name.
b) The total amount involved.
c) The amount payable or refundable due to the error or
delay.
d) A summary of why the relief is warranted.
6)Specified that a refund may be paid as a result of the relief
granted only if the written claim for refund is received by
the Advocate within the applicable statute of limitations.
7)Stated that a determination made by the Advocate is not
subject to administrative or judicial review.
FISCAL EFFECT : The FTB staff states that, while it is
impossible to quantify future case volumes, this bill would most
likely result in some minor cost savings.
Analysis Prepared by : Oksana Jaffe / REV. & TAX. / (916)
319-2098
AB 2686
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FN: 0005169