BILL NUMBER: AB 2512	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Skinner

                        FEBRUARY 24, 2012

   An act to amend Section 19135 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2512, as introduced, Skinner. Income taxes: limited liability
company: penalties.
   The Corporation Tax Law imposes taxes measured by income at a
specified rate. Existing law provides that, whenever any foreign
corporation that fails to qualify to do business in this state or
whose powers, rights, and privileges have been forfeited, or any
domestic corporation that has been suspended, and that is doing
business in this state fails to make and file a return, provided, the
Franchise Tax Board shall impose a penalty of $2,000 per taxable
year, as specified.
   This bill would also make this penalty applicable to a foreign
limited liability company which fails to qualify to do business in
this state or whose powers, rights, and privileges have been
forfeited and to a domestic limited liability company which has been
suspended and which is doing business in this state, as specified.
   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.  Section 19135 of the Revenue and Taxation Code is
amended to read:
   19135.  Whenever any foreign corporation  which 
 or any foreign limited liability company that  fails to
qualify to do business in this state or whose powers, rights, and
privileges have been forfeited, or any domestic corporation 
which   or any domestic limited liability company that
 has been suspended, and which is doing business in this state,
within the meaning of Section 23101, fails to make and file a return
as required by this part, the Franchise Tax Board shall impose a
penalty of two thousand dollars ($2,000) per taxable year, unless the
failure to file is due to reasonable cause and not willful neglect.
The penalty shall be in addition to any other penalty which may be
due under this part. The penalty shall be imposed if the return is
not filed within 60 days after the Franchise Tax Board sends the
taxpayer a notice and demand to file the required tax return.