BILL NUMBER: AB 1006 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 25, 2011
INTRODUCED BY Assembly Member Cook
FEBRUARY 18, 2011
An act to add Part 10.1 (commencing with Section 15706) to
Division 3 of Title 2 of the Government Code, and to amend
Sections 17024.5, 18526, 19032, 19057, 19058, 19060, 19061, 19065,
19066.5, 23051.5, 24273.5, and 24945 Section 19032
of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1006, as amended, Cook. Taxation: Franchise Tax Board:
statute of limitations: burden of proof.
Existing law imposes income taxes that are administered and
collected by the Franchise Tax Board. Existing law
establishes a general four-year statute of limitations, subject to
specified exceptions, for actions by the Franchise Tax Board
regarding tax liability and also provides that the taxpayer
has the burden of proof in court proceedings for purposes of state
income tax laws.
This bill would provide that the Franchise Tax Board shall have
the burden of proof in any court or administrative tax proceedings
with respect to any factual issue relevant to ascertaining the tax
liability of a taxpayer specified taxpayers
. This bill would also provide that these provisions shall not
subject a taxpayer those taxpayers to
unreasonable search or access to records in violation of the law.
This bill would additionally revise the statute of
limitations regarding specified actions, including audits, conducted
by the board and would require the board to have just cause
before beginning any audit.
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. This act shall be known, and may be cited, as "The Tax
Fairness Act of 2011."
SEC. 2. Part 10.1 (commencing with Section 15706) is added to
Division 3 of Title 2 of the Government Code, to read:
PART 10.1. BURDEN OF PROOF
15706. (a) The Franchise Tax Board shall have the burden of proof
in any court or administrative tax proceeding with respect to a
factual issue related to ascertaining the tax liability of a
taxpayer.
(b) For purposes of this section:
(1) "Administrative tax proceeding" means, for disputes concerning
taxes collected by the Franchise Tax Board, the oral hearing before
the members of the State Board of Equalization.
(2) "Tax liability" means any tax or fee assessed or determined by
the Franchise Tax Board, including any interest accrued or penalties
levied in association with the tax or fee.
(c) Unless provided otherwise, the burden of proof for purposes of
this part shall be a preponderance of the evidence.
(d) Nothing in this section shall subject a taxpayer to
unreasonable search or access to records in violation of the United
States Constitution, the California Constitution, or any other law.
(e) This section shall apply only to court and administrative
proceedings involving assessments or notices of determination issued
on or after the date on which this act becomes operative.
(f) This section shall apply only to the following taxpayers:
(1) Taxpayers (A) whose filing status is as a single taxpayer, a
married taxpayer filing separately, a registered domestic partner
filing separately, a head of household, or as a qualifying widow or
widower, and (B) whose adjusted gross income is less than one hundred
thousand dollars ($100,000) for the taxable year.
(2) Taxpayers (A) whose filing status is a married taxpayer filing
jointly or a registered domestic partner filing jointly, and (B)
whose adjusted gross income is less than two hundred fifty thousand
dollars ($250,000) for that taxable year.
SEC. 3. Section 19032 of the Revenue
and Taxation Code is amended to read:
19032. (a) As soon as practicable after the
return is filed, the Franchise Tax Board shall examine it and shall
determine the correct amount of the tax.
(b) The Franchise Tax Board shall have just cause in order to
begin any audit. All matter omitted in this version of the bill
appears in the bill as introduced in the Assembly, February 18,
2011. (JR11)