BILL NUMBER: SB 1548 ENROLLED
BILL TEXT
PASSED THE SENATE MAY 14, 2012
PASSED THE ASSEMBLY AUGUST 16, 2012
AMENDED IN SENATE MAY 8, 2012
INTRODUCED BY Senator Wyland
FEBRUARY 24, 2012
An act to amend Sections 7093.6, 9278, 30459.15, 32471.5, 41171.5,
46628, 50156.18, 55332.5, and 60637 of the Revenue and Taxation
Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1548, Wyland. State Board of Equalization: offer in compromise.
After January 1, 2007, and before January 1, 2013, the Sales and
Use Tax Law, Use Fuel Tax Law, Cigarette and Tobacco Products Tax
Law, Alcoholic Beverage Tax Law, Emergency Telephone Users Surcharge
Act, Oil Spill Response, Prevention, and Administration Fees Law,
Underground Storage Tank Maintenance Fee Law, Fee Collection
Procedures Law, and Diesel Fuel Tax Law allow the State Board of
Equalization to accept an offer in compromise on a final tax
liability, as defined, imposed under or in accordance with those laws
regardless of whether the liabilities are generated from a 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, as prescribed.
Under these laws, a taxpayer or feepayer would be 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 extend the repeal date for the above provisions to
January 1, 2018. The bill, by extending the repeal date, would
expand an existing crime and, thus, impose a state-mandated local
program.
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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7093.6 of the Revenue and Taxation Code, as
amended by Section 565 of Chapter 15 of the Statutes of 2011, is
amended to read:
7093.6. (a) (1) Beginning January 1, 2003, the executive director
and chief counsel of the board, 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.
(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 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 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) 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 to reestablish the liability, or any
portion thereof, if the taxpayer has sufficient annual income during
the succeeding five-year period. The board shall establish criteria
for determining "sufficient annual income" for purposes of this
subdivision.
(g) 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) 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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(i) A determination by the board 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) When an offer in compromise is either accepted or rejected, or
the terms and conditions of a compromise agreement are fulfilled,
the board 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) 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) 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 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 in connection with these
statements.
(m) 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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) 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) 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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 2. Section 7093.6 of the Revenue and Taxation Code, as
amended by Section 566 of Chapter 15 of the Statutes of 2011, is
amended to read:
7093.6. (a) (1) The executive director and chief counsel of the
board, 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.
(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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(e) A determination by the board 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 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 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 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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, 2018.
SEC. 3. Section 9278 of the Revenue and Taxation Code, as amended
by Section 567 of Chapter 15 of the Statutes of 2011, is amended to
read:
9278. (a) (1) Beginning January 1, 2003, the executive director
and chief counsel of the board, 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.
(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 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 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) 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 to reestablish the liability, or any
portion thereof, if the taxpayer has sufficient annual income during
the succeeding five-year period. The board shall establish criteria
for determining "sufficient annual income" for purposes of this
subdivision.
(g) 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) 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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(i) A determination by the board 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) When an offer in compromise is either accepted or rejected, or
the terms and conditions of a compromise agreement are fulfilled,
the board 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) 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) 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 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 in connection with these
statements.
(m) 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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) 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) 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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 4. Section 9278 of the Revenue and Taxation Code, as amended
by Section 568 of Chapter 15 of the Statutes of 2011, is amended to
read:
9278. (a) (1) The executive director and chief counsel of the
board, 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.
(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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(e) A determination by the board 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 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 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 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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, 2018.
SEC. 5. Section 30459.15 of the Revenue and Taxation Code, as
amended by Section 574 of Chapter 15 of the Statutes of 2011, is
amended to read:
30459.15. (a) (1) Beginning on January 1, 2007, the executive
director and chief counsel of the board, or their delegates, may
compromise any final tax liability where the reduction of tax is
seven thousand five hundred dollars ($7,500) or less.
(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 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 may, in its discretion, enter into a written
agreement which 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) 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 to reestablish the liability, or any
portion thereof, if the taxpayer has sufficient annual income during
the succeeding five-year period. The board shall establish criteria
for determining "sufficient annual income" for purposes of this
subdivision.
(g) 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) 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) and continues to purchase untaxed cigarettes or
tobacco products from out-of-state vendors for the taxpayer's own use
or consumption.
(i) 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 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 a
statement, under penalty of perjury, that he or she will no longer
purchase untaxed cigarettes or tobacco products from out-of-state
vendors for his or her own use or consumption.
(j) A determination by the board 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) (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) When an offer in compromise is either accepted or rejected, or
the terms and conditions of a compromise agreement are fulfilled,
the board 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) 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) 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 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 in connection with
these statements.
(o) 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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) 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) 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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 6. Section 30459.15 of the Revenue and Taxation Code, as
amended by Section 575 of Chapter 15 of the Statutes of 2011, is
amended to read:
30459.15. (a) (1) The executive director and chief counsel of the
board, or their delegates, may compromise any final tax liability
where the reduction of tax is seven thousand five hundred dollars
($7,500) or less.
(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 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 a
statement, under penalty of perjury, that he or she will no longer
purchase untaxed cigarettes or tobacco products from out-of-state
vendors for his or her own use or consumption.
(f) A determination by the board 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 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 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 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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, 2018.
SEC. 7. Section 32471.5 of the Revenue and Taxation Code, as
amended by Section 576 of Chapter 15 of the Statutes of 2011, is
amended to read:
32471.5. (a) (1) Beginning on January 1, 2007, the executive
director and chief counsel of the board, or their delegates, may
compromise any final tax liability where the reduction of tax is
seven thousand five hundred dollars ($7,500) or less.
(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 14 (commencing with
Section 32001), 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 by 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 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 finds no evidence that the taxpayer collected
reimbursement or tax reimbursement from the purchaser or other person
and which was determined against the taxpayer under Article 2
(commencing with Section 32271), Article 3 (commencing with Section
32291), or Article 4 (commencing with Section 32301) of Chapter 6.
(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 may, in its discretion, enter into a written
agreement which 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) 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 to reestablish the liability, or any
portion thereof, if the taxpayer has sufficient annual income during
the succeeding five-year period. The board shall establish criteria
for determining "sufficient annual income" for purposes of this
subdivision.
(g) A taxpayer that has received a compromise under paragraph (2)
of subdivision (c) shall file and pay by the due date all
subsequently required tax returns and reports for a five-year period
from the date the liability is compromised, or until the taxpayer is
no longer required to file tax returns and reports, whichever period
is earlier.
(h) 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) 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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(j) A determination by the board 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) (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) When an offer in compromise is either accepted or rejected, or
the terms and conditions of a compromise agreement are fulfilled,
the board 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) 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) 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 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 32455. A list shall not be prepared and
releases shall not be distributed by the board in connection with
these statements.
(o) 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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) 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) 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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 8. Section 32471.5 of the Revenue and Taxation Code, as
amended by Section 577 of Chapter 15 of the Statutes of 2011, is
amended to read:
32471.5. (a) (1) The executive director and chief counsel of the
board, or their delegates, may compromise any final tax liability
where the reduction of tax is seven thousand five hundred dollars
($7,500) or less.
(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 14 (commencing with
Section 32001), 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 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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(f) A determination by the board 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 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 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 32455. A list shall not be prepared and
releases shall not be distributed by the board 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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, 2018.
SEC. 9. Section 41171.5 of the Revenue and Taxation Code, as
amended by Section 581 of Chapter 15 of the Statutes of 2011, is
amended to read:
41171.5. (a) (1) Beginning on January 1, 2007, the executive
director and chief counsel of the board, or their delegates, may
compromise any final surcharge liability where the reduction of
surcharges is seven thousand five hundred dollars ($7,500) or less.
(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 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 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 may, in its discretion, enter into a written
agreement which 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) 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 to reestablish the liability, or any
portion thereof, if the surcharge payer has sufficient annual income
during the succeeding five-year period. The board shall establish
criteria for determining "sufficient annual income" for purposes of
this subdivision.
(g) 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) 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) 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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(j) A determination by the board 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) (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) When an offer in compromise is either accepted or rejected, or
the terms and conditions of a compromise agreement are fulfilled,
the board 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) 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) 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 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 in
connection with these statements.
(o) 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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) 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) 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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 10. Section 41171.5 of the Revenue and Taxation Code, as
amended by Section 582 of Chapter 15 of the Statutes of 2011, is
amended to read:
41171.5. (a) (1) The executive director and chief counsel of the
board, or their delegates, may compromise any final surcharge
liability where the reduction of surcharges is seven thousand five
hundred dollars ($7,500) or less.
(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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(f) A determination by the board 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 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 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 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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, 2018.
SEC. 11. Section 46628 of the Revenue and Taxation Code, as
amended by Section 587 of Chapter 15 of the Statutes of 2011, is
amended to read:
46628. (a) (1) Beginning on January 1, 2007, the executive
director and chief counsel of the board, or their delegates, may
compromise any final fee liability where the reduction of fees is
seven thousand five hundred dollars ($7,500) or less.
(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 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 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 may, in its discretion, enter into a written
agreement which 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) 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 to reestablish the liability, or any
portion thereof, if the feepayer has sufficient annual income during
the succeeding five-year period. The board shall establish criteria
for determining "sufficient annual income" for purposes of this
subdivision.
(g) 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) 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) 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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(j) A determination by the board 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) (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 an offer in compromise is either accepted or rejected, or
the terms and conditions of a compromise agreement are fulfilled,
the board 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) 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) 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 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 in connection with
these statements.
(o) 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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) 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) 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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 12. Section 46628 of the Revenue and Taxation Code, as
amended by Section 588 of Chapter 15 of the Statutes of 2011, is
amended to read:
46628. (a) (1) The executive director and chief counsel of the
board, or their delegates, may compromise any final fee liability
where the reduction of fees is seven thousand five hundred dollars
($7,500) or less.
(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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(f) A determination by the board 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 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 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 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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, 2018.
SEC. 13. Section 50156.18 of the Revenue and Taxation Code, as
amended by Section 590 of Chapter 15 of the Statutes of 2011, is
amended to read:
50156.18. (a) (1) Beginning January 1, 2003, the executive
director and chief counsel of the board, 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.
(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 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 may, in its discretion, enter into a written
agreement which 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) 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 to reestablish the liability, or any
portion thereof, if the feepayer has sufficient annual income during
the succeeding five-year period. The board shall establish criteria
for determining "sufficient annual income" for purposes of this
subdivision.
(g) 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) 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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(i) A determination by the board 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) When an offer in compromise is either accepted or rejected, or
the terms and conditions of a compromise agreement are fulfilled,
the board 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) 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) 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 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
in connection with these statements.
(m) 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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) 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) 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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 14. Section 50156.18 of the Revenue and Taxation Code, as
amended by Section 591 of Chapter 15 of the Statutes of 2011, is
amended to read:
50156.18. (a) (1) The executive director and chief counsel of the
board, 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.
(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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(e) A determination by the board 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 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 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
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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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, 2018.
SEC. 15. Section 55332.5 of the Revenue and Taxation Code, as
amended by Section 592 of Chapter 15 of the Statutes of 2011, is
amended to read:
55332.5. (a) (1) Beginning on January 1, 2007, the executive
director and chief counsel of the board, or their delegates, may
compromise any final fee liability where the reduction of fees is
seven thousand five hundred dollars ($7,500) or less.
(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 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 may, in its discretion, enter into a written
agreement which 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) 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 to reestablish the liability, or any
portion thereof, if the feepayer has sufficient annual income during
the succeeding five-year period. The board shall establish criteria
for determining "sufficient annual income" for purposes of this
subdivision.
(g) 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) 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) 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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(j) A determination by the board 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) (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 an offer in compromise is either accepted or
rejected, or the terms and conditions of a compromise agreement are
fulfilled, the board 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) 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) 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 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 in connection with
these statements.
(o) 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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) 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) 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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 16. Section 55332.5 of the Revenue and Taxation Code, as
amended by Section 593 of Chapter 15 of the Statutes of 2011, is
amended to read:
55332.5. (a) (1) The executive director and chief counsel of the
board, or their delegates, may compromise any final fee liability
where the reduction of fees is seven thousand five hundred dollars
($7,500) or less.
(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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(f) A determination by the board 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 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 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 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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 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, 2018.
SEC. 17. Section 60637 of the Revenue and Taxation Code, as
amended by Section 595 of Chapter 15 of the Statutes of 2011, is
amended to read:
60637. (a) (1) Beginning on January 1, 2007, the executive
director and chief counsel of the board, or their delegates, may
compromise any final tax liability where the reduction of tax is
seven thousand five hundred dollars ($7,500) or less.
(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 finds no evidence that the supplier collected diesel fuel
tax reimbursement from the purchaser or other person and which was
determined by the board 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 may, in its discretion, enter into a written
agreement which 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) 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 to reestablish the liability, or any
portion thereof, if the taxpayer has sufficient annual income during
the succeeding five-year period. The board shall establish criteria
for determining "sufficient annual income" for purposes of this
subdivision.
(g) 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) 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) 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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(j) A determination by the board 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) (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) When an offer in compromise is either accepted or rejected, or
the terms and conditions of a compromise agreement are fulfilled,
the board 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) 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) 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 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 in connection with
these statements.
(o) 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 determines that a person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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) 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) 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) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 18. Section 60637 of the Revenue and Taxation Code, as
amended by Section 596 of Chapter 15 of the Statutes of 2011, is
amended to read:
60637. (a) (1) The executive director and chief counsel of the
board, or their delegates, may compromise any final tax liability
where the reduction of tax is seven thousand five hundred dollars
($7,500) or less.
(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 shall have determined that acceptance of the
compromise is in the best interest of the state.
(f) A determination by the board 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 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 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 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 determines that any person did any of the following
acts regarding the making of the offer:
(A) Concealed from the board 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, 2018.
SEC. 19. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.