BILL NUMBER: AB 2009 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 27, 2014
INTRODUCED BY Assembly Member Weber
FEBRUARY 20, 2014
An act to add Sections 8258, 8258.1, 8258.2, 8258.3, 8258.4,
9259, 9259.1, 9259.2, 9259.3., 9259.3,
9259.4, 30457, 30457.1, 30457.2, 30457.3, 30457.4,
32458, 32458.1, 32458.2, 32458.3, 32458.4, 40177, 40177.1,
40177.2, 40177.3, 40177.4, 41133, 41133.1, 41133.2, 41133.3, 41133.4,
43507, 43507.1, 43507.2, 43507.3, 43507.4, 45855.6,
45855.61, 45855.62, 45855.63, 45855.6.1,
45855.6.2, 45855.6.3, 45855.6.4, 46607, 46607.1, 46607.2,
46607.3, 46607.4, 50155.6, 50155.61, 50155.62,
50155.63, 50155.6.1, 50155.6.2, 50155.6.3, 50155.6.4,
55306, 55306.1, 55306.2, 55306.3, 55306.4, 60611,
60611.1, 60611.2, and 60611.3 , and 60611.4
to , to add Article 4.5 (commencing with Section
40192) to Chapter 7 of Part 19 of, and to add Article 4.5 (commencing
with Section 41153) to Chapter 7 of Part 20 of, Division 2 of,
the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2009, as amended, Weber. State Board of Equalization:
administration: managed audit program.
The Sales and Use Tax Law provides for a managed audit program, in
which, if the State Board of Equalization determines a taxpayer's
account is eligible for the program by meeting specified criteria
, and the taxpayer agrees to participate, the
taxpayer examines its books, records, and equipment to determine if
it has any unreported tax liability for the audit period, in
compliance with the managed audit instructions provided by the board.
Under that law, upon completion of the managed audit and
verification by the board, interest on any unpaid liability is
computed at 1/2 the rate that would otherwise be imposed for
liabilities covered by the audit period.
This bill would authorize a managed audit program for the Motor
Vehicle Fuel Tax Law, Use Fuel Tax Law, Cigarette and Tobacco
Products Tax Law, Alcoholic Beverage Tax Law, Energy Resources
Surcharge Law, Emergency Telephone Users Surcharge Act, Hazardous
Substances Tax Law, Integrated Waste Management Fee Law, Oil Spill
Response, Prevention, and Administration Fees Law, Underground
Storage Tank Maintenance Fee Law, fees collected pursuant to the Fee
Collection Procedures Law, and Diesel Fuel Tax Law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8258 is added to the Revenue and Taxation Code,
to read:
8258. (a) The State Board of Equalization
board shall determine which taxpayer's
taxpayer's accounts are eligible for the managed audit program
in a manner that is consistent with the efficient use of its
auditing resources and the maximum effectiveness of the program.
(b) A taxpayer is not required to participate in the managed audit
program.
SEC. 2. Section 8258.1 is added to the Revenue and Taxation Code,
to read:
8258.1. A taxpayer's taxpayer's
account is eligible for the managed audit program only if the
taxpayer meets all of the following criteria:
(a) The taxpayer's taxpayer's
business involves few or no statutory exemptions.
(b) The taxpayer's taxpayer's
business involves a single or a small number of clearly defined
taxability issues.
(c) The taxpayer is taxed pursuant to this part and agrees to
participate in the managed audit program.
(d) The taxpayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 3. Section 8258.2 is added to the Revenue and Taxation Code,
to read:
8258.2. (a) If the board selects a taxpayer's
taxpayer's account for a managed audit, all of the
following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the taxpayer is to follow in
determining any liability.
(D) The records to be reviewed by the taxpayer.
(E) The manner in which the types of transactions are to be
scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The taxpayer shall:
(A) Examine its books , records, and equipment
and records to determine if it has any unreported tax
liability for the audit period.
(B) Make available to the board for verification all computations
, books, records, and equipment and books and
records examined pursuant to subparagraph (A).
(b) The information provided by the taxpayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 4. Section 8258.3 is added to the
Revenue and Taxation Code , to read:
8258.3. Nothing in the article limits the board's authority to
examine the books and records of a taxpayer under Section 8253.
SEC. 4. SEC. 5. Section
8258.3 8258.4 is added to the Revenue and
Taxation Code, to read:
8258.3. 8258.4. Upon completion of
the managed audit and verification by the board, interest on any
unpaid liability shall be computed at one-half the rate that would
otherwise be imposed for liabilities covered by the audit period.
Payment of the liabilities and interest shall be made within the time
period specified by the board. If the requirements for the managed
audit are not satisfied, the board may proceed to examine the records
of the taxpayer in a manner to be determined by the board under law.
SEC. 5. SEC. 6. Section 9259 is
added to the Revenue and Taxation Code, to read:
9259. (a) The State Board of Equalization
board shall determine which taxpayer's
taxpayer's accounts are eligible for the managed audit program
in a manner that is consistent with the efficient use of its
auditing resources and the maximum effectiveness of the program.
(b) A taxpayer is not required to participate in the managed audit
program.
SEC. 6. SEC. 7. Section 9259.1 is
added to the Revenue and Taxation Code, to read:
9259.1. A taxpayer's taxpayer's
account is eligible for the managed audit program only if the
taxpayer meets all of the following criteria:
(a) The taxpayer's taxpayer's
business involves few or no statutory exemptions.
(b) The taxpayer's taxpayer's
business involves a single or a small number of clearly defined
taxability issues.
(c) The taxpayer is taxed pursuant to this part and agrees to
participate in the managed audit program.
(d) The taxpayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 7. SEC. 8. Section 9259.2 is
added to the Revenue and Taxation Code, to read:
9259.2. (a) If the board selects a taxpayer's account for a
managed audit, all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the taxpayer is to follow in
determining any liability.
(D) The records to be reviewed by the taxpayer.
(E) The manner in which the types of transactions are to be
scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The taxpayer shall:
(A) Examine its books, papers, records, and equipment
to determine if it has any unreported tax liability for the audit
period.
(B) Make available to the board for verification all computations
, books, and books, papers, records,
and equipment examined pursuant to subparagraph (A).
(b) The information provided by the taxpayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 9. Section 9259.3 is added to the
Revenue and Taxation Code , to read:
9259.3. Nothing in this article limits the board's authority to
examine the books, papers, records, and equipment of a taxpayer under
Section 9254.
SEC. 8. SEC. 10. Section
9259.3 9259.4 is added to the Revenue and
Taxation Code, to read:
9259.3. 9259.4. Upon completion of
the managed audit and verification by the board, interest on any
unpaid liability shall be computed at one-half the rate that would
otherwise be imposed for liabilities covered by the audit period.
Payment of the liabilities and interest shall be made within the time
period specified by the board. If the requirements for the managed
audit are not satisfied, the board may proceed to examine the records
of the taxpayer in a manner to be determined by the board under law.
SEC. 9. SEC. 11. Section 30457 is
added to the Revenue and Taxation Code, to read:
30457. (a) The State Board of Equalization
board shall determine which taxpayer's
taxpayer's accounts are eligible for the managed audit
program in a manner that is consistent with the efficient use of its
auditing resources and the maximum effectiveness of the program.
(b) A taxpayer is not required to participate in the managed audit
program.
SEC. 10. SEC. 12. Section 30457.1 is
added to the Revenue and Taxation Code, to read:
30457.1. A taxpayer's taxpayer's
account is eligible for the managed audit program only if the
taxpayer meets all of the following criteria:
(a) The taxpayer's taxpayer's
business involves few or no statutory exemptions.
(b) The taxpayer's taxpayer's
business involves a single or a small number of clearly defined
taxability issues.
(c) The taxpayer is taxed pursuant to this part and agrees to
participate in the managed audit program.
(d) The taxpayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 11. SEC. 13. Section 30457.2 is
added to the Revenue and Taxation Code, to read:
30457.2. (a) If the board selects a taxpayer's
taxpayer's account for a managed audit, all of the
following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the taxpayer is to follow in
determining any liability.
(D) The records to be reviewed by the taxpayer.
(E) The manner in which the types of transactions are to be
scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The taxpayer shall:
(A) Examine its books, papers, records, and equipment
to determine if it has any unreported tax liability for the audit
period.
(B) Make available to the board for verification all computations
, books, and books, papers, records,
and equipment examined pursuant to subparagraph (A).
(b) The information provided by the taxpayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 14. Section 30457.3 is added to the
Revenue and Taxation Code , to read:
30457.3. Nothing in this article limits the board's authority to
examine the books, papers, records, and equipment of a taxpayer under
Section 30454.
SEC. 12. SEC. 15. Section
30457.3 30457.4 is added to the Revenue and
Taxation Code, to read:
30457.3. 30457.4. Upon completion of
the managed audit and verification by the board, interest on any
unpaid liability shall be computed at one-half the rate that would
otherwise be imposed for liabilities covered by the audit period.
Payment of the liabilities and interest shall be made within the time
period specified by the board. If the requirements for the managed
audit are not satisfied, the board may proceed to examine the records
of the taxpayer in a manner to be determined by the board under law.
SEC. 13. SEC. 16. Section 32458 is
added to the Revenue and Taxation Code, to read:
32458. (a) The State Board of Equalization
board shall determine which taxpayer's
taxpayer's accounts are eligible for the managed audit
program in a manner that is consistent with the efficient use of its
auditing resources and the maximum effectiveness of the program.
(b) A taxpayer is not required to participate in the managed audit
program.
SEC. 14. SEC. 17. Section 32458.1 is
added to the Revenue and Taxation Code, to read:
32458.1. A taxpayer's taxpayer's
account is eligible for the managed audit program only if the
taxpayer meets all of the following criteria:
(a) The taxpayer's taxpayer's
business involves few or no statutory exemptions.
(b) The taxpayer's taxpayer's
business involves a single or a small number of clearly defined
taxability issues.
(c) The taxpayer is taxed pursuant to this part and agrees to
participate in the managed audit program.
(d) The taxpayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 15. SEC. 18. Section 32458.2 is
added to the Revenue and Taxation Code, to read:
32458.2. (a) If the board selects a taxpayer's
taxpayer's account for a managed audit, all of the
following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the taxpayer is to follow in
determining any liability.
(D) The records to be reviewed by the taxpayer.
(E) The manner in which the types of transactions are to be
scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The taxpayer shall:
(A) Examine its books , records, and equipment
and records to determine if it has any unreported tax
liability for the audit period.
(B) Make available to the board for verification all computations
, books, records, and equipment and books and
records examined pursuant to subparagraph (A).
(b) The information provided by the taxpayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 19. Section 32458.3 is added to the
Revenue and Taxation Code , to read:
32458.3. Nothing in this article limits the board's authority to
examine the books and records of a taxpayer under Section 32453.
SEC. 16. SEC. 20. Section
32458.3 32458.4 is added to the Revenue and
Taxation Code, to read:
32458.3. 32458.4. Upon completion
of the managed audit and verification by the board, interest on any
unpaid liability shall be computed at one-half the rate that would
otherwise be imposed for liabilities covered by the audit period.
Payment of the liabilities and interest shall be made within the time
period specified by the board. If the requirements for the managed
audit are not satisfied, the board may proceed to examine the records
of the taxpayer in a manner to be determined by the board under law.
SEC. 17. Article 4.5 (commencing with Section
40192) is added to Chapter 7 of Part 19 of Division 2 of the Revenue
and Taxation Code, to read:
Article 4.5. Managed Audits
40192. (a) The board shall determine which electric utility's
accounts are eligible for the managed audit program in a manner that
is consistent with the efficient use of its auditing resources and
the maximum effectiveness of the program.
(b) An electric utility is not required to participate in the
managed audit program.
40192.1. An electric utility's account is eligible for the
managed audit program only if the electric utility meets all of the
following criteria:
(a) The electric utility's business involves few or no statutory
exemptions.
(b) The electric utility's business involves a single or small
number of clearly defined taxability issues.
(c) The electric utility is subject to this part and agrees to
participate in the managed audit program.
(d) The electric utility has the resources to comply with the
managed audit instructions provided by the board.
40192.2. (a) If the board selects an electric utility's account
for a managed audit, all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the electric utility is to follow
in determining any liability.
(D) The records to be reviewed by the electric utility.
(E) The manner in which the types of transactions are to be
scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The electric utility shall:
(A) Examine its books, records, and equipment to determine if it
has any unreported surcharge liability for the audit period.
(B) Make available to the board for verification all computations,
books, records, and equipment examined pursuant to subparagraph (A).
(b) The information provided by the electric utility pursuant to
paragraph (2) of subdivision (a) is the same information that is
required for the completion of any other audit that the board may
conduct.
40192.3. Upon completion of the managed audit and verification by
the board, interest on any unpaid liability shall be computed at
one-half the rate that would otherwise be imposed for liabilities
covered by the audit period. Payment of the liabilities and interest
shall be made within the time period specified by the board. If the
requirements for the managed audit are not satisfied, the board may
proceed to examine the records of the electric utility in a manner to
be determined by the board under law.
SEC. 18. Article 4.5 (commencing with Section
41153) is added to Chapter 7 of Part 20 of Division 2 of the Revenue
and Taxation Code, to read:
Article 4.5. Managed Audits
41153. (a) The board shall determine which service supplier's
accounts are eligible for the managed audit program in a manner that
is consistent with the efficient use of its auditing resources and
the maximum effectiveness of the program.
(b) A service supplier is not required to participate in the
managed audit program.
41153.1. A service supplier's account is eligible for the managed
audit program only if the service supplier meets all of the
following criteria:
(a) The service supplier's business involves few or no statutory
exemptions.
(b) The service supplier's business involves a single or a small
number of clearly defined taxability issues.
(c) The service supplier is taxed pursuant to this part and agrees
to participate in the managed audit program.
(d) The service supplier has the resources to comply with the
managed audit instructions provided by the board.
41153.2. (a) If the board selects a service supplier's account
for a managed audit, all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the service supplier is to follow
in determining any liability.
(D) The records to be reviewed by the service supplier.
(E) The manner in which the types of transactions are to be
scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The service supplier shall:
(A) Examine its books, records, and equipment to determine if it
has any unreported tax liability for the audit period.
(B) Make available to the board for verification all computations,
books, records, and equipment examined pursuant to subparagraph (A).
(b) The information provided by the service supplier pursuant to
paragraph (2) of subdivision (a) is the same information that is
required for the completion of any other audit that the board may
conduct.
41153.3. Upon completion of the managed audit and verification by
the board, interest on any unpaid liability shall be computed at
one-half the rate that would otherwise be imposed for liabilities
covered by the audit period. Payment of the liabilities and interest
shall be made within the time period specified by the board. If the
requirements for the managed audit are not satisfied, the board may
proceed to examine the records of the service supplier in a manner to
be determined by the board under law.
SEC. 21. Section 40177 is added to the
Revenue and Taxation Code , to read:
40177. (a) The board shall determine which electric utility's
accounts are eligible for the managed audit program in a manner that
is consistent with the efficient use of its auditing resources and
the maximum effectiveness of the program.
(b) An electric utility is not required to participate in the
managed audit program.
SEC. 22. Section 40177.1 is added to the
Revenue and Taxation Code , to read:
40177.1. An electric utility's account is eligible for the
managed audit program only if the electric utility meets all of the
following criteria:
(a) The electric utility's business involves few or no statutory
exemptions.
(b) The electric utility's business involves a single or small
number of clearly defined taxability issues.
(c) The electric utility is subject to this part and agrees to
participate in the managed audit program.
(d) The electric utility has the resources to comply with the
managed audit instructions provided by the board.
SEC. 23. Section 40177.2 is added to the
Revenue and Taxation Code , to read:
40177.2. (a) If the board selects an electric utility's account
for a managed audit, all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the electric utility is to follow
in determining any liability.
(D) The records to be reviewed by the electric utility.
(E) The manner in which the types of transactions are to be
scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The electric utility shall:
(A) Examine its records, meters, and equipment to determine if it
has any unreported tax liability for the audit period.
(B) Make available to the board for verification all computations
and records, meters, and equipment examined pursuant to subparagraph
(A).
(b) The information provided by the electric utility pursuant to
paragraph (2) of subdivision (a) is the same information that is
required for the completion of any other audit that the board may
conduct.
SEC. 24. Section 40177.3 is added to the
Revenue and Taxation Code , to read:
40177.3. Nothing in the article limits the board's authority to
examine the records, meters, and equipment of an electric utility
under Section 40174.
SEC. 25. Section 40177.4 is added to the
Revenue and Taxation Code , to read:
40177.4. Upon completion of the managed audit and verification by
the board, interest on any unpaid liability shall be computed at
one-half the rate that would otherwise be imposed for liabilities
covered by the audit period. Payment of the liabilities and interest
shall be made within the time period specified by the board. If the
requirements for the managed audit are not satisfied, the board may
proceed to examine the records of the electric utility in a manner to
be determined by the board under law.
SEC. 26. Section 41133 is added to the
Revenue and Taxation Code , to read:
41133. (a) The board shall determine which service supplier's
accounts are eligible for the managed audit program in a manner that
is consistent with the efficient use of its auditing resources and
the maximum effectiveness of the program.
(b) A service supplier is not required to participate in the
managed audit program.
SEC. 27. Section 41133.1 is added to the
Revenue and Taxation Code , to read:
41133.1. A service supplier's account is eligible for the managed
audit program only if the service supplier meets all of the
following criteria:
(a) The service supplier's business involves few or no statutory
exemptions.
(b) The service supplier's business involves a single or small
number of clearly defined taxability issues.
(c) The service supplier is taxed pursuant to this part and agrees
to participate in the managed audit program.
(d) The service supplier has the resources to comply with the
managed audit instructions provided by the board.
SEC. 28. Section 41133.2 is added to the
Revenue and Taxation Code , to read:
41133.2. (a) If the board selects a service supplier's account
for a managed audit, all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the service supplier is to follow
in determining any liability.
(D) The records to be reviewed by the service supplier.
(E) The manner in which the types of transactions are to be
scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The service supplier shall:
(A) Examine its records and returns to determine if it has any
unreported tax liability for the audit period.
(B) Make available to the board for verification all computations
and records and returns examined pursuant to subparagraph (A).
(b) The information provided by the service supplier pursuant to
paragraph (2) of subdivision (a) is the same information that is
required for the completion of any other audit that the board may
conduct.
SEC. 29.
Section 41133.3 is added to the Revenue and
Taxation Code , to read:
41133.3. Nothing in this article limits the board's authority to
inspect and audit all records and returns of a service supplier under
Section 41130.
SEC. 30. Section 41133.4 is added to the
Revenue and Taxation Code , to read:
41133.4. Upon completion of the managed audit and verification by
the board, interest on any unpaid liability shall be computed at
one-half the rate that would otherwise be imposed for liabilities
covered by the audit period. Payment of the liabilities and interest
shall be made within the time period specified by the board. If the
requirements for the managed audit are not satisfied, the board may
proceed to examine the records of the service supplier in a manner to
be determined by the board under law.
SEC. 19. SEC. 31. Section 43507 is
added to the Revenue and Taxation Code, to read:
43507. (a) The board shall determine which taxpayer's
taxpayer's accounts are eligible for the managed
audit program in a manner that is consistent with the efficient use
of its auditing resources and the maximum effectiveness of the
program.
(b) A taxpayer is not required to participate in the managed audit
program.
SEC. 20. SEC. 32. Section 43507.1 is
added to the Revenue and Taxation Code, to read:
43507.1. A taxpayer's account is eligible for the managed audit
program only if the taxpayer meets all of the following criteria:
(a) The taxpayer's business or activities involve few or no
statutory exemptions.
(b) The taxpayer's business or activities involve a single or a
small number of clearly defined taxability or liability issues.
(c) The taxpayer is taxed pursuant to this part and agrees to
participate in the managed audit program.
(d) The taxpayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 21. SEC. 33. Section 43507.2 is
added to the Revenue and Taxation Code, to read:
43507.2. (a) If the board selects a taxpayer's account for a
managed audit, all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions or activities covered by the managed
audit.
(C) The specific procedures that the taxpayer is to follow in
determining any liability.
(D) The records to be reviewed by the taxpayer.
(E) The manner in which the types of transactions or activities
are to be scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The taxpayer shall:
(A) Examine its books , records, and equipment
and records to determine if it has any unreported
liability for the audit period.
(B) Make available to the board for verification all computations
, books, records, and equipment and books and
records examined pursuant to subparagraph (A).
(b) The information provided by the taxpayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 34. Section 43507.3 is added to the
Revenue and Taxation Code , to read:
43507.3. Nothing in this article limits the board's authority to
examine the books and records of a taxpayer under Section 43502.
SEC. 22. SEC. 35. Section
43507.3 43507.4 is added to the Revenue and
Taxation Code, to read:
43507.3. 43507.4. Upon completion
of the managed audit and verification by the board, interest on any
unpaid liability shall be computed at one-half the rate that would
otherwise be imposed for liabilities covered by the audit period.
Payment of the liabilities and interest shall be made within the time
period specified by the board. If the requirements for the managed
audit are not satisfied, the board may proceed to examine the records
of the taxpayer in a manner to be determined by the board under law.
SEC. 23. SEC. 36. Section 45855.6 is
added to the Revenue and Taxation Code, to read:
45855.6. (a) The board shall determine which feepayer's accounts
are eligible for the managed audit program in a manner that is
consistent with the efficient use of its auditing resources and the
maximum effectiveness of the program.
(b) A feepayer is not required to participate in the managed audit
program.
SEC. 24. SEC. 37. Section
45855.61 45855.6.1 is added to the Revenue and
Taxation Code, to read:
45855.61. 45855.6.1. A feepayer's
account is eligible for the managed audit program only if the
feepayer meets all of the following criteria:
(a) The feepayer's business or activities involve few or no
statutory exemptions.
(b) The feepayer's business or activities involve a single or a
small number of clearly defined taxability or liability issues.
(c) The feepayer is charged pursuant to this part
subject to the fee imposed pursuant to Section 48000
of the Public Resources Code and agrees to participate in the
managed audit program.
(d) The feepayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 25. SEC. 38. Section
45855.62 45855.6.2 is added to the Revenue and
Taxation Code, to read:
45855.62. 45855.6.2. (a) If the
board selects a feepayer's account for a managed audit, all of the
following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions or activities covered by the managed
audit.
(C) The specific procedures that the feepayer is to follow in
determining any liability.
(D) The records to be reviewed by the feepayer.
(E) The manner in which the types of transactions or activities
are to be scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The feepayer shall:
(A) Examine its books , records, and equipment
and records to determine if it has any unreported
liability for the audit period.
(B) Make available to the board for verification all computations
, books, records, and equipment and books and
records examined pursuant to subparagraph (A).
(b) The information provided by the feepayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 39. Section 45855.6.3 is added to the
Revenue and Taxation Code , to read:
45855.6.3. Nothing in this article limits the board's authority
to examine the books and records of a fee payer under Section 45852.
SEC. 26. SEC. 40. Section
45855.63 45855.6.4 is added to the Revenue and
Taxation Code, to read:
45855.63. 45855.6.4. Upon
completion of the managed audit and verification by the board,
interest on any unpaid liability shall be computed at one-half the
rate that would otherwise be imposed for liabilities covered by the
audit period. Payment of the liabilities and interest shall be made
within the time period specified by the board. If the requirements
for the managed audit are not satisfied, the board may proceed to
examine the records of the feepayer in a manner to be determined by
the board under law.
SEC. 27. SEC. 41. Section 46607 is
added to the Revenue and Taxation Code, to read:
46607. (a) The board shall determine which feepayer's accounts
are eligible for the managed audit program in a manner that is
consistent with the efficient use of its auditing resources and the
maximum effectiveness of the program.
(b) A feepayer is not required to participate in the managed audit
program.
SEC. 28. SEC. 42. Section 46607.1 is
added to the Revenue and Taxation Code, to read:
46607.1. A feepayer's account is eligible for the managed audit
program only if the feepayer meets all of the following criteria:
(a) The feepayer's business or activities involve few or no
statutory exemptions.
(b) The feepayer's business or activities involve a single or a
small number of clearly defined taxability or liability issues.
(c) The feepayer is charged pursuant to this part
subject to the fee imposed pursuant to Section 8670.40
or Section 8670.48 of the Government Code and agrees to
participate in the managed audit program.
(d) The feepayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 29. SEC. 43. Section 46607.2 is
added to the Revenue and Taxation Code, to read:
46607.2. (a) If the board selects a feepayer's account for a
managed audit, all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions or activities covered by the managed
audit.
(C) The specific procedures that the feepayer is to follow in
determining any liability.
(D) The records to be reviewed by the feepayer.
(E) The manner in which the types of transactions or activities
are to be scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The feepayer shall:
(A) Examine its books , records, and equipment
and records to determine if it has any unreported
liability for the audit period.
(B) Make available to the board for verification all computations
, books, records, and equipment and books and
records examined pursuant to subparagraph (A).
(b) The information provided by the feepayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 44. Section 46607.3 is added to the
Revenue and Taxation Code , to read:
46607.3. Nothing in this article limits the board's authority to
examine the books and records of a feepayer under Section 46603.
SEC. 30. SEC. 45. Section
46607.3 46607.4 is added to the Revenue and
Taxation Code, to read:
46607.3. 46607.4. Upon completion
of the managed audit and verification by the board, interest on any
unpaid liability shall be computed at one-half the rate that would
otherwise be imposed for liabilities covered by the audit period.
Payment of the liabilities and interest shall be made within the time
period specified by the board. If the requirements for the managed
audit are not satisfied, the board may proceed to examine the records
of the feepayer in a manner to be determined by the board under law.
SEC. 31. SEC. 46. Section 50155.6 is
added to the Revenue and Taxation Code, to read:
50155.6. (a) The board shall determine which feepayer's accounts
are eligible for the managed audit program in a manner that is
consistent with the efficient use of its auditing resources and the
maximum effectiveness of the program.
(b) A feepayer is not required to participate in the managed audit
program.
SEC. 32. SEC. 47. Section
50155.61 50155.6.1 is added to the Revenue and
Taxation Code, to read:
50155.61. 50155.6.1. A feepayer's
account is eligible for the managed audit program only if the
feepayer meets all of the following criteria:
(a) The feepayer's business or activities involve few or no
statutory exemptions.
(b) The feepayer's business or activities involves a single or
small number of clearly defined taxability or liability issues.
(c) The feepayer is charged pursuant to this part
subject to the fee imposed pursuant to Section
25299.41 of the Health and Safety Code and agrees to
participate in the managed audit program.
(d) The feepayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 33. SEC. 48. Section
50155.62 50155.6.2 is added to the Revenue and
Taxation Code, to read:
50155.62. 50155.6.2. (a) If the
board selects a feepayer's account for a managed audit, all of the
following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions or activities covered by the managed
audit.
(C) The specific procedures that the feepayer is to follow in
determining any liability.
(D) The records to be reviewed by the feepayer.
(E) The manner in which the types of transactions or activities
are to be scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The feepayer shall:
(A) Examine its books , records, and equipment
and records to determine if it has any unreported
liability for the audit period.
(B) Make available to the board for verification all computations
, books, records, and equipment and books and
records examined pursuant to subparagraph (A).
(b) The information provided by the feepayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 49. Section 50155.6.3 is added to the
Revenue and Taxation Code , to read:
50155.6.3. Nothing in this article limits the board's authority
to examine the books and records of a fee payer under Section 50153.
SEC. 34. SEC. 50. Section
50155.63 50155.6.4 is added to the Revenue and
Taxation Code, to read:
50155.63. 50155.6.4. Upon
completion of the managed audit and verification by the board,
interest on any unpaid liability shall be computed at one-half the
rate that would otherwise be imposed for liabilities covered by the
audit period. Payment of the liabilities and interest shall be made
within the time period specified by the board. If the requirements
for the managed audit are not satisfied, the board may proceed to
examine the records of the feepayer in a manner to be determined by
the board under law.
SEC. 35. SEC. 51. Section 55306 is
added to the Revenue and Taxation Code, to read:
55306. (a) The board shall determine which feepayer's accounts
are eligible for the managed audit program in a manner that is
consistent with the efficient use of its auditing resources and the
maximum effectiveness of the program.
(b) A feepayer is not required to participate in the managed audit
program.
SEC. 36. SEC. 52. Section 55306.1 is
added to the Revenue and Taxation Code, to read:
55306.1. A feepayer's account is eligible for the managed audit
program only if the feepayer meets all of the following criteria:
(a) The feepayer's business or activities involve few or no
statutory exemptions.
(b) The feepayer's business or activities involve a single or a
small number of clearly defined taxability or liability issues.
(c) The feepayer is subject to the collection procedures
in this liable for payment of a fee collected pursuant
to this part and agrees to participate in the managed audit
program.
(d) The feepayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 37. SEC. 53. Section 55306.2 is
added to the Revenue and Taxation Code, to read:
55306.2. (a) If the board selects a feepayer's account for a
managed audit, all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions or activities covered by the managed
audit.
(C) The specific procedures that the feepayer is to follow in
determining any liability.
(D) The records to be reviewed by the feepayer.
(E) The manner in which the types of transactions or activities
are to be scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The feepayer shall:
(A) Examine its books , records, and equipment
and records to determine if it has any unreported
liability for the audit period.
(B) Make available to the board for verification all computations
, books, records, and equipment books and
records examined pursuant to subparagraph (A).
(b) The information provided by the feepayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 54. Section 55306.3 is added to the
Revenue and Taxation Code , to read:
55306.3. Nothing in this article limits the board's authority to
examine the books and records of a feepayer under Section 55302.
SEC. 38. SEC. 55. Section
55306.3 55306.4 is added to the Revenue and
Taxation Code, to read:
55306.3. 55306.4. Upon completion
of the managed audit and verification by the board, interest on any
unpaid liability shall be computed at one-half the rate that would
otherwise be imposed for liabilities covered by the audit period.
Payment of the liabilities and interest shall be made within the time
period specified by the board. If the requirements for the managed
audit are not satisfied, the board may proceed to examine the records
of the feepayer in a manner to be determined by the board under law.
SEC. 39. SEC. 56. Section 60611 is
added to the Revenue and Taxation Code, to read:
60611. (a) The board shall determine which taxpayer's accounts
are eligible for the managed audit program in a manner that is
consistent with the efficient use of its auditing resources and the
maximum effectiveness of the program.
(b) A taxpayer is not required to participate in the managed audit
program.
SEC. 40. SEC. 57. Section 60611.1 is
added to the Revenue and Taxation Code, to read:
60611.1. A taxpayer's account is eligible for the managed audit
program only if the taxpayer meets all of the following criteria:
(a) The taxpayer's business involves few or no statutory
exemptions.
(b) The taxpayer's business involves a single or a small number of
clearly defined taxability issues.
(c) The taxpayer is taxed pursuant to this part and agrees to
participate in the managed audit program.
(d) The taxpayer has the resources to comply with the managed
audit instructions provided by the board.
SEC. 41. SEC. 58. Section 60611.2 is
added to the Revenue and Taxation Code, to read:
60611.2. (a) If the board selects a taxpayer's account for a
managed audit, all of the following apply:
(1) The board shall identify all of the following:
(A) The audit period covered by the managed audit.
(B) The types of transactions covered by the managed audit.
(C) The specific procedures that the taxpayer is to follow in
determining any liability.
(D) The records to be reviewed by the taxpayer.
(E) The manner in which the types of transactions are to be
scheduled for review.
(F) The time period for completion of the managed audit.
(G) The time period for the payment of the liability and interest.
(H) Any other criteria that the board may require for completion
of the managed audit.
(2) The taxpayer shall:
(A) Examine its books, records, and equipment to determine if it
has any unreported tax liability for the audit period.
(B) Make available to the board for verification all
computations, computations and books, records,
and equipment examined pursuant to subparagraph (A).
(b) The information provided by the taxpayer pursuant to paragraph
(2) of subdivision (a) is the same information that is required for
the completion of any other audit that the board may conduct.
SEC. 59. Section 60611.3 is added to the
Revenue and Taxation Code , to read:
60611.3. Nothing in this article limits the board's authority to
examine the books, records, and equipment of a taxpayer under Section
60606.
SEC. 42. SEC. 60. Section
60611.3 60611.4 is added to the Revenue and
Taxation Code, to read:
60611.3. 60611.4. Upon completion
of the managed audit and verification by the board, interest on any
unpaid liability shall be computed at one-half the rate that would
otherwise be imposed for liabilities covered by the audit period.
Payment of the liabilities and interest shall be made within the time
period specified by the board. If the requirements for the managed
audit are not satisfied, the board may proceed to examine the records
of the taxpayer in a manner to be determined by the board under law.