AB 1450, as introduced, Chang. Income taxes: administration: returns: penalties.
Under existing law, the Franchise Tax Board is authorized to impose a 25% penalty for failure to furnish information in response to a written request from the Franchise Tax Board and failure to file a return upon notice and demand of the Franchise Tax Board.
This bill would instead authorize the Franchise Tax Board to impose a penalty of up to 10%, and would require the board, in determining the amount of penalty, to consider whether the taxpayer has made a good faith effort to comply with that information request or notice and demand.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 19133 of the Revenue and Taxation Code
2 is amended to read:
If any taxpayer fails or refuses to furnish any
4information requested in writing by the Franchise Tax Board or
5fails or refuses to make and file a return required by this part upon
P2 1notice and demand by the Franchise Tax Board, then, unless the
2failure is due to reasonable cause and not willful neglect, the
3Franchise Tax Board may add a penalty ofbegin delete 25end deletebegin insert up to 10end insert percent of
4the amount of tax determined pursuant to Section 19087 or of any
5deficiency tax assessed by the Franchise Tax Board concerning
6the assessment of which the information or return was required.
7begin insert
In determining the amount of penalty, the Franchise Tax Board
8shall consider whether the taxpayer has made a good faith effort
9to comply with that information request or notice and demand.end insert
O
99