BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2177|
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THIRD READING
Bill No: AB 2177
Author: Beall (D), et al
Amended: 5/26/10 in Senate
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 3-0, 6/9/10
AYES: Wolk, Alquist, Padilla
NO VOTE RECORDED: Walters, Ashburn
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 5/6/10 - See last page for vote
SUBJECT : Income and corporation taxes: administration
SOURCE : Franchise Tax Board
DIGEST : This bill authorizes the Franchise Tax Board to
communicate with taxpayers and their authorized
representatives via electronic mail.
ANALYSIS : Existing federal law requires the Internal
Revenue Service (IRS) to mail correspondence to a taxpayer
at the taxpayer's last known address and provides that the
"last known address" is the address that appears on the
taxpayer's recently filed federal tax return, unless the
IRS has been given clear and concise notice of a different
address. In addition, prior to mailing correspondence to
any particular taxpayer, the IRS may access the U.S. Postal
Service National Change of Address database to update the
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AB 2177
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taxpayer's last known address. While existing federal law
allows taxpayers to submit returns and payments
electronically, the IRS explicitly informs taxpayers that
it does not communicate with taxpayers regarding their
accounts electronically. Existing state law defines "the
taxpayer's last known address" as the address that appears
on the taxpayer's last return filed with the Franchise Tax
Board (FTB), unless the taxpayer has provided the FTB clear
and concise written or electronic notification of a
different address or the FTB has an address that it has
reason to believe is the most current address for the
taxpayer. A Notice of Proposed Assessment and final
deficiency notice issued after January 1, 2008, require a
postmark (which is defined as a postal marking made on a
letter, package, or postcard indicating the date when the
item is delivered to the U.S. Postal Service).
This bill authorizes FTB to implement, by regulation, an
alternative communication method that, would allow FTB to
communicate with the taxpayer electronically at the request
of a taxpayer.
This bill:
1.Allows FTB, to provide an electronic notification, e.g.
an e-mail, of statements, bills or other communications
that have been posted to the taxpayer's online account at
the request of a taxpayer.
2.Requires that prior to obtaining consent from the
taxpayer to use the elective method, the FTB advise the
taxpayer of the ramifications of such an election and of
failing to take appropriate action in response to the
electronic notifications.
3.Allows taxpayers to file electronically a protest,
notification, and other communication to the FTB through
its website.
4.Will be implemented once FTB completes planned upgrades
to its online system, currently planned for 2013, and
sunsets on January 1, 2018.
Comments
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According to the author's office:
AB 2177 would allow the FTB, at a taxpayer's request,
to send a message to the taxpayer (or their authorized
representative) that a bill, notice, or statement can
be retrieved by the taxpayer through the secure FTB
website in lieu of mailing the notice by U.S. postal
mail.
Using secure authentication procedures, taxpayers
would have the option of accessing electronic
communications through FTB's website. The notice
would be considered received by the taxpayer when the
communication is transmitted in the manner as
previously designated. No confidential information
would be transmitted electronically within the
communication.
This bill would allow the FTB to reduce postage costs,
go "green" by cutting down on paper mail, and improve
efficiencies in tax administration workloads, all
while providing the same level of services. The option
for electronic notification also ensures that
taxpayers who move frequently will be given a timely
receipt of FTB notices.
Related Legislation
On April 22, 2010, the Senate approved SB 1493 (Senate
Committee on Revenue and Taxation), by a vote of 33-0,
which allowed assessors to communicate with taxpayers via
email regarding specified property tax information, at the
taxpayer's request. This bill is now on the Assembly
Consent Calendar.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/29/10)
Franchise Tax Board (source)
California Taxpayers' Association
California Manufacturers and Technology Association
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California Society of Enrolled Agents
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
Leon, DeVore, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,
Bonnie Lowenthal, Ma, Miller, Monning, Nava, Nestande,
Niello, Nielsen, Norby, V. Manuel Perez, Portantino,
Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,
Audra Strickland, Swanson, Torlakson, Torres, Torrico,
Tran, Villines, Yamada, John A. Perez
NO VOTE RECORDED: Bass, Block, De La Torre, Gilmore,
Mendoza
DLW:nl 6/30/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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