BILL ANALYSIS �
AB 318
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 318 (Skinner)
As Amended August 14, 2012
Majority vote
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|ASSEMBLY: |75-0 |(January 26, |SENATE: |24-14|(August 21, |
| | |2012) | | |2012) |
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Original Committee Reference: REV. & TAX.
SUMMARY : Conforms California's income tax laws to the federal
income tax law regarding the definition of a "legal holiday" and
the due dates for filing income tax returns and making payments.
Imposes a $2,000 penalty on certain foreign and domestic
limited liability corporations (LLCs) for failure to file a tax
return, as specified below.
The Senate amendments add provisions relating to the imposition
of a $2,000 penalty on certain foreign and domestic LLCs, as
specified, for failure to file a tax return. Specifically, the
amendments:
1)Make the existing $2,000 penalty imposed for each taxable year
for failure to file a tax return applicable to both of the
following entities that are doing business in California:
a) A foreign LLC that fails to qualify to do business in
this state or whose powers, rights, and privileges have
been forfeited; and,
b) A domestic LLC that has been suspended.
2)Specify that the penalty will not be imposed if the failure to
file is due to reasonable cause and not willful neglect.
3)Provide that the penalty shall be imposed if the return is not
filed within 60 days after the Franchise Tax Board (FTB) sends
the LLC a notice and demand to file the required return.
4)Apply to non-qualified, suspended, or forfeited LLCs that fail
to file a return on or after January 1, 2013.
AS PASSED BY THE ASSEMBLY , this bill:
AB 318
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1)Codified the FTB's authority, by reference to Internal Revenue
Code (IRC) Section 7503, to extend the due date for filing tax
returns and making payments, for purposes of the Personal
Income Tax and the Corporation Tax Laws, if the last day to
file or make a payment falls on a Saturday, Sunday, or a legal
holiday.
2)Defined the term "legal holiday" to include legal holidays
recognized by the federal government for filing federal tax
returns and making payments, including legal holidays in the
District of Columbia.
FISCAL EFFECT : The FTB staff estimates that this bill will
result in a gain of $330,000 in fiscal year (FY) 2011-12,
$400,000 in FY 2012-13, $490,000 in FY 2013-14, $600,000 in FY
2014-15, and $700,000 in FY 2015-16.
COMMENTS : This bill was amended in the Senate to add new
provisions that were originally included in AB 2512 (Skinner),
introduced in the current legislative session, which was
approved by the Assembly on May 7, 2012.
Analysis Prepared by : Oksana Jaffe / REV. & TAX. / (916)
319-2098
FN: 0005118