BILL NUMBER: SB 1158	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Price

                        FEBRUARY 22, 2012

   An act to amend Sections 18572 and 19109 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1158, as introduced, Price. Income taxes: administration.
   The Personal Income Tax Law conforms to federal law by allowing
the postponement of certain tax-related deadlines for those taxpayers
affected by federally declared disasters or terroristic or military
action.
   This bill would extend the provisions relating to postponement to
those taxpayers determined by the Franchise Tax Board to be affected
by a state of emergency declared by the Governor of California.
   Existing law provides for an abatement of interest accrued against
the income tax liability of an individual during a filing extension
period authorized for individuals determined to be affected by a
presidentially declared disaster, if that individual is located in an
area affected by a presidentially declared disaster or in a county
or city that is proclaimed by the Governor to be in a state of
disaster.
   This bill would additionally authorize the Franchise Tax Board,
after a written request by a taxpayer, to abate specified interest
accrued against the income tax liability of individuals, under
specified circumstances related to a presidentially declared disaster
or in a county or city that is proclaimed by the Governor to be in a
state of emergency, as provided.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 18572 of the Revenue and Taxation Code is
amended to read:
   18572.   (a)    Section 7508A of the Internal
Revenue Code, relating to postponement of certain tax-related
deadlines, shall apply, except as otherwise provided. 
   (b) Section 7508A of the Internal Revenue Code, relating to
postponement of certain tax-related deadlines, shall apply to a
taxpayer determined by the Franchise Tax Board to be affected by a
state of emergency declared by the Governor. 
  SEC. 2.  Section 19109 of the Revenue and Taxation Code is amended
to read:
   19109.  (a) If the Franchise Tax Board extends for any period the
time for filing a return under Section 18572 or subdivision (a) of
Section 18567 and the time for paying the tax under Section 18572 or
subdivision (c) of Section 18567 (and waives any penalties relating
to the failure to so file or so pay) for any taxpayer located in a
presidentially declared disaster area or any county or city in this
state which is proclaimed by the Governor to be in a state of
 disaster   emergency  that incurred a
loss, the Franchise Tax Board  shall, notwithstanding
subdivision (b) of Section 18572,   shall  abate
for that period the assessment of any interest prescribed under this
article on that tax. 
   (b) (1) The Franchise Tax Board may, after written request by a
taxpayer, abate the interest on any deficiency or related to a
proposed deficiency described in Section 19033 or on a payment of tax
to the extent that interest is attributable in whole or in part to
the Franchise Tax Board's delay in the mailing of a notice or other
correspondence that requires a response from a taxpayer, in
connection with a presidentially declared disaster area, or any
county or city in this state that is proclaimed by the Governor to be
in a state of emergency.  
   (2) (A) Except as provided in paragraph (4), after the Franchise
Tax Board mails its notice of determination not to abate interest, a
taxpayer may appeal the Franchise Tax Board's determination to the
board within the following period, as applicable:  
   (i) Thirty days in the case of any unpaid interest described under
paragraph (1).  
   (ii) Ninety days in the case of any paid interest described under
paragraph (1).  
   (B) The board shall have jurisdiction over the appeal to determine
whether the Franchise Tax Board's failure to abate interest under
this subdivision was an abuse of discretion, and may order an
abatement.  
   (3) If the Franchise Tax Board fails to mail its notice of
determination on a request to abate interest within six months after
the request is filed, it shall be considered that the Franchise Tax
Board has determined not to abate interest and the taxpayer may
appeal that determination to the board. This paragraph shall not
apply to requests for abatement of interest made under paragraph (4).
 
   (4) A request for abatement of interest related to a proposed
deficiency may be made with the written protest of the underlying
proposed deficiency filed under Section 19041 or with an appeal to
the board under Section 19045 in the form and manner required by the
Franchise Tax Board. The action of the Franchise Tax Board denying
any portion of the request for abatement of interest related to the
proposed deficiency shall be considered as part of the appeal of the
action of the Franchise Tax Board on the protest of the proposed
deficiency. If the taxpayer filed an appeal from the Franchise Tax
Board's action on the protest of a proposed deficiency and the
deficiency is final pursuant to Section 19048, the taxpayer may not
thereafter request an abatement of interest accruing prior to the
time the deficiency is final. The taxpayer, however, may thereafter
request an abatement pursuant to this subdivision limited to the
interest accruing after the deficiency is final.  
   (5) This subdivision shall apply to requests for abatement of
interest made on or after the effective date of the act adding this
paragraph, except that the period referred to in clauses (i) and (ii)
of subparagraph (A) of paragraph (2) shall be deemed to commence no
earlier than the effective date of the act adding this paragraph.
 
   (b) 
    (c)  For purposes of  subdivision (a) 
 this section  , the term "presidentially declared disaster
area" means, with respect to any taxpayer, any area which the
President has determined warrants assistance by the federal
government under the Disaster Relief and Emergency Assistance Act.