BILL NUMBER: AB 2512	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 10, 2012

INTRODUCED BY   Assembly Member Skinner

                        FEBRUARY 24, 2012

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2512, as amended, 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,
 as  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and Taxation Code   is repealed.  
   19135.  Whenever any foreign corporation which fails to qualify to
do business in this state or whose powers, rights, and privileges
have been forfeited, or any domestic corporation which 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. 
   SEC. 2.    Section 19135 is added to the  
Revenue and Taxation Code   , to read:  
   19135.  (a) (1) The Franchise Tax Board shall impose a penalty of
two thousand dollars ($2,000) per taxable year whenever an entity
described in paragraph (2) is doing business in this state, within
the meaning of Section 23101, and fails to make and file a return as
required by this part, within 60 days after the Franchise Tax Board
sends the taxpayer a notice and demand to file the required tax
return, unless the failure is due to reasonable cause and not willful
neglect.
   (2) (A) A foreign corporation or a foreign limited liability
company that fails to qualify to do business in this state or whose
powers, rights, and privileges have been forfeited.
   (B) A domestic corporation or a domestic limited liability company
that has been suspended.
   (b) The penalty shall be in addition to any other penalty that may
be due under this part.  
  SECTION 1.    Section 19135 of the Revenue and
Taxation Code is amended to read:
   19135.  Whenever any foreign corporation 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 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.