AB 1450, as amended, 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 andbegin delete demand.end deletebegin insert demand, as providedend insertbegin insert.end insert
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
2information requested in writing by the Franchise Tax Board or
3fails or refuses to make and file a return required by this part upon
4notice and demand by the Franchise Tax Board, then, unless the
5failure is due to reasonable cause and not willful neglect, the
6Franchise Tax Board may add a penalty of up to 10 percent of the
7amount of tax determined pursuant to Section 19087 or of any
8deficiency tax assessed by the Franchise Tax Board concerning
9the assessment of which the information or return was required.
10
In determining the amount of penalty, the Franchise Tax Board
11shall consider whether the taxpayer has made a good faith effort
12to comply with that information request or notice andbegin delete demand.end delete
13begin insert demand, including whether some or all of the tax determined
14pursuant to Section 19087 or of any deficiency tax assessed has
15been paid.end insert
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