AB 2009, as introduced, Weber. State Board of Equalization: administration: managed audit program.
The Sales and Use Tax Law provides for a managed audit program, in which, if the State Board of Equalization determines a taxpayer’s account is eligible for the program by meeting specified criteria, and the taxpayer agrees to participate, the taxpayer examines its books, records, and equipment to determine if it has any unreported tax liability for the audit period, in compliance with the managed audit instructions provided by the board. Under that law, upon completion of the managed audit and verification by the board, interest on any unpaid liability is computed at1⁄2 the rate that would otherwise be imposed for liabilities covered by the audit period.
This bill would authorize a managed audit program for the Motor Vehicle Fuel Tax Law, Use Fuel Tax Law, Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Energy Resources Surcharge Law, Emergency Telephone Users Surcharge Act, Hazardous Substances Tax Law, Integrated Waste Management Fee Law, Oil Spill Response, Prevention, and Administration Fees Law, Underground Storage Tank Maintenance Fee Law, fees collected pursuant to the Fee Collection Procedures Law, and Diesel Fuel Tax Law.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 8258 is added to the Revenue and
2Taxation Code, to read:
(a) The State Board of Equalization shall determine
4which taxpayer's accounts are eligible for the managed audit
5program in a manner that is consistent with the efficient use of its
6auditing resources and the maximum effectiveness of the program.
7(b) A taxpayer is not required to participate in the managed
8audit program.
Section 8258.1 is added to the Revenue and Taxation
10Code, to read:
A taxpayer's account is eligible for the managed audit
12program only if the taxpayer meets all of the following criteria:
13(a) The taxpayer's business involves few or no statutory
14exemptions.
15(b) The taxpayer's business involves a single or a small number
16of clearly defined taxability issues.
17(c) The taxpayer is taxed pursuant to this part and agrees to
18participate in the managed audit program.
19(d) The taxpayer has the resources to comply with the managed
20audit instructions provided by the board.
Section 8258.2 is added to the Revenue and Taxation
22Code, to read:
(a) If the board selects a taxpayer's account for a
24managed audit, all of the following apply:
25(1) The board shall identify all of the following:
26(A) The audit period covered by the managed audit.
27(B) The types of transactions covered by the managed audit.
P3 1(C) The specific procedures that the taxpayer is to follow in
2determining any liability.
3(D) The records to be reviewed by the taxpayer.
4(E) The manner in which the types of
transactions are to be
5scheduled for review.
6(F) The time period for completion of the managed audit.
7(G) The time period for the payment of the liability and interest.
8(H) Any other criteria that the board may require for completion
9of the managed audit.
10(2) The taxpayer shall:
11(A) Examine its books, records, and equipment to determine if
12it has any unreported tax liability for the audit period.
13(B) Make available to the board for verification all computations,
14books, records, and equipment examined pursuant to subparagraph
15(A).
16(b) The information provided by
the taxpayer pursuant to
17paragraph (2) of subdivision (a) is the same information that is
18required for the completion of any other audit that the board may
19conduct.
Section 8258.3 is added to the Revenue and Taxation
21Code, to read:
Upon completion of the managed audit and verification
23by the board, interest on any unpaid liability shall be computed at
24one-half the rate that would otherwise be imposed for liabilities
25covered by the audit period. Payment of the liabilities and interest
26shall be made within the time period specified by the board. If the
27requirements for the managed audit are not satisfied, the board
28may proceed to examine the records of the taxpayer in a manner
29to be determined by the board under law.
Section 9259 is added to the Revenue and Taxation
31Code, to read:
(a) The State Board of Equalization shall determine
33which taxpayer's accounts are eligible for the managed audit
34program in a manner that is consistent with the efficient use of its
35auditing resources and the maximum effectiveness of the program.
36(b) A taxpayer is not required to participate in the managed
37audit program.
Section 9259.1 is added to the Revenue and Taxation
39Code, to read:
A taxpayer's account is eligible for the managed audit
2program only if the taxpayer meets all of the following criteria:
3(a) The taxpayer's business involves few or no statutory
4exemptions.
5(b) The taxpayer's business involves a single or a small number
6of clearly defined taxability issues.
7(c) The taxpayer is taxed pursuant to this part and agrees to
8participate in the managed audit program.
9(d) The taxpayer has the resources to comply with the managed
10audit instructions provided by the board.
Section 9259.2 is added to the Revenue and Taxation
12Code, to read:
(a) If the board selects a taxpayer's account for a
14managed audit, all of the following apply:
15(1) The board shall identify all of the following:
16(A) The audit period covered by the managed audit.
17(B) The types of transactions covered by the managed audit.
18(C) The specific procedures that the taxpayer is to follow in
19determining any liability.
20(D) The records to be reviewed by the taxpayer.
21(E) The manner in which the types of
transactions are to be
22scheduled for review.
23(F) The time period for completion of the managed audit.
24(G) The time period for the payment of the liability and interest.
25(H) Any other criteria that the board may require for completion
26of the managed audit.
27 (2) The taxpayer shall:
28 (A) Examine its books, records, and equipment to determine if
29it has any unreported tax liability for the audit period.
30(B) Make available to the board for verification all computations,
31books, records, and equipment examined pursuant to subparagraph
32(A).
33(b) The information provided
by the taxpayer pursuant to
34paragraph (2) of subdivision (a) is the same information that is
35required for the completion of any other audit that the board may
36conduct.
Section 9259.3 is added to the Revenue and Taxation
38Code, to read:
Upon completion of the managed audit and verification
40by the board, interest on any unpaid liability shall be computed at
P5 1one-half the rate that would otherwise be imposed for liabilities
2covered by the audit period. Payment of the liabilities and interest
3shall be made within the time period specified by the board. If the
4requirements for the managed audit are not satisfied, the board
5may proceed to examine the records of the taxpayer in a manner
6to be determined by the board under law.
Section 30457 is added to the Revenue and Taxation
8Code, to read:
(a) The State Board of Equalization shall determine
10which taxpayer's accounts are eligible for the managed audit
11program in a manner that is consistent with the efficient use of its
12auditing resources and the maximum effectiveness of the program.
13(b) A taxpayer is not required to participate in the managed
14audit program.
Section 30457.1 is added to the Revenue and Taxation
16Code, to read:
A taxpayer's account is eligible for the managed audit
18program only if the taxpayer meets all of the following criteria:
19(a) The taxpayer's business involves few or no statutory
20exemptions.
21(b) The taxpayer's business involves a single or a small number
22of clearly defined taxability issues.
23(c) The taxpayer is taxed pursuant to this part and agrees to
24participate in the managed audit program.
25(d) The taxpayer has the resources to comply with the managed
26audit instructions provided by the board.
Section 30457.2 is added to the Revenue and Taxation
28Code, to read:
(a) If the board selects a taxpayer's account for a
30managed audit, all of the following apply:
31(1) The board shall identify all of the following:
32 (A) The audit period covered by the managed audit.
33(B) The types of transactions covered by the managed audit.
34(C) The specific procedures that the taxpayer is to follow in
35determining any liability.
36(D) The records to be reviewed by the taxpayer.
37(E) The manner in which the types
of transactions are to be
38scheduled for review.
39(F) The time period for completion of the managed audit.
40(G) The time period for the payment of the liability and interest.
P6 1(H) Any other criteria that the board may require for completion
2of the managed audit.
3(2) The taxpayer shall:
4(A) Examine its books, records, and equipment to determine if
5it has any unreported tax liability for the audit period.
6(B) Make available to the board for verification all computations,
7books, records, and equipment examined pursuant to subparagraph
8(A).
9(b) The information provided
by the taxpayer pursuant to
10paragraph (2) of subdivision (a) is the same information that is
11required for the completion of any other audit that the board may
12conduct.
Section 30457.3 is added to the Revenue and Taxation
14Code, to read:
Upon completion of the managed audit and
16verification by the board, interest on any unpaid liability shall be
17computed at one-half the rate that would otherwise be imposed
18for liabilities covered by the audit period. Payment of the liabilities
19and interest shall be made within the time period specified by the
20board. If the requirements for the managed audit are not satisfied,
21the board may proceed to examine the records of the taxpayer in
22a manner to be determined by the board under law.
Section 32458 is added to the Revenue and Taxation
24Code, to read:
(a) The State Board of Equalization shall determine
26which taxpayer's accounts are eligible for the managed audit
27program in a manner that is consistent with the efficient use of its
28auditing resources and the maximum effectiveness of the program.
29(b) A taxpayer is not required to participate in the managed
30audit program.
Section 32458.1 is added to the Revenue and Taxation
32Code, to read:
A taxpayer's account is eligible for the managed audit
34program only if the taxpayer meets all of the following criteria:
35(a) The taxpayer's business involves few or no statutory
36exemptions.
37(b) The taxpayer's business involves a single or a small number
38of clearly defined taxability issues.
39(c) The taxpayer is taxed pursuant to this part and agrees to
40participate in the managed audit program.
P7 1(d) The taxpayer has the resources to comply with the managed
2audit instructions provided by the board.
Section 32458.2 is added to the Revenue and Taxation
4Code, to read:
(a) If the board selects a taxpayer's account for a
6managed audit, all of the following apply:
7(1) The board shall identify all of the following:
8(A) The audit period covered by the managed audit.
9(B) The types of transactions covered by the managed audit.
10(C) The specific procedures that the taxpayer is to follow in
11determining any liability.
12(D) The records to be reviewed by the taxpayer.
13(E) The manner in which the types
of transactions are to be
14scheduled for review.
15(F) The time period for completion of the managed audit.
16(G) The time period for the payment of the liability and interest.
17(H) Any other criteria that the board may require for completion
18of the managed audit.
19(2) The taxpayer shall:
20(A) Examine its books, records, and equipment to determine if
21it has any unreported tax liability for the audit period.
22(B) Make available to the board for verification all computations,
23books, records, and equipment examined pursuant to subparagraph
24(A).
25(b) The information provided
by the taxpayer pursuant to
26paragraph (2) of subdivision (a) is the same information that is
27required for the completion of any other audit that the board may
28conduct.
Section 32458.3 is added to the Revenue and Taxation
30Code, to read:
Upon completion of the managed audit and
32verification by the board, interest on any unpaid liability shall be
33computed at one-half the rate that would otherwise be imposed
34for liabilities covered by the audit period. Payment of the liabilities
35and interest shall be made within the time period specified by the
36board. If the requirements for the managed audit are not satisfied,
37the board may proceed to examine the records of the taxpayer in
38a manner to be determined by the board under law.
Article 4.5 (commencing with Section 40192) is
2added to Chapter 7 of Part 19 of Division 2 of the Revenue and
3Taxation Code, to read:
4
(a) The board shall determine which electric utility’s
8accounts are eligible for the managed audit program in a manner
9that is consistent with the efficient use of its auditing resources
10and the maximum effectiveness of the program.
11(b) An electric utility is not required to participate in the
12managed audit program.
An electric utility’s account is eligible for the
14managed audit program only if the electric utility meets all of the
15following criteria:
16(a) The electric utility’s business involves few or no statutory
17exemptions.
18(b) The electric utility’s business involves a single or small
19number of clearly defined taxability issues.
20(c) The electric utility is subject to this part and agrees to
21participate in the managed audit program.
22(d) The electric utility has the resources to comply with the
23managed audit instructions provided by the
board.
(a) If the board selects an electric utility’s account
25for a managed audit, all of the following apply:
26(1) The board shall identify all of the following:
27(A) The audit period covered by the managed audit.
28(B) The types of transactions covered by the managed audit.
29(C) The specific procedures that the electric utility is to follow
30in determining any liability.
31(D) The records to be reviewed by the electric utility.
32(E) The
manner in which the types of transactions are to be
33scheduled for review.
34(F) The time period for completion of the managed audit.
35(G) The time period for the payment of the liability and interest.
36(H) Any other criteria that the board may require for completion
37of the managed audit.
38(2) The electric utility shall:
39(A) Examine its books, records, and equipment to determine if
40it has any unreported surcharge liability for the audit period.
P9 1(B) Make available to the board for verification all computations,
2books, records, and equipment examined pursuant to subparagraph
3(A).
4(b) The information provided by the electric utility pursuant to
5paragraph (2) of subdivision (a) is the same information that is
6required for the completion of any other audit that the board may
7conduct.
Upon completion of the managed audit and
9verification by the board, interest on any unpaid liability shall be
10computed at one-half the rate that would otherwise be imposed
11for liabilities covered by the audit period. Payment of the liabilities
12and interest shall be made within the time period specified by the
13board. If the requirements for the managed audit are not satisfied,
14the board may proceed to examine the records of the electric utility
15in a manner to be determined by the board under law.
Article 4.5 (commencing with Section 41153) is
17added to Chapter 7 of Part 20 of Division 2 of the Revenue and
18Taxation Code, to read:
19
(a) The board shall determine which service supplier’s
23accounts are eligible for the managed audit program in a manner
24that is consistent with the efficient use of its auditing resources
25and the maximum effectiveness of the program.
26(b) A service supplier is not required to participate in the
27managed audit program.
A service supplier’s account is eligible for the
29managed audit program only if the service supplier meets all of
30the following criteria:
31(a) The service supplier’s business involves few or no statutory
32exemptions.
33(b) The service supplier’s business involves a single or a small
34number of clearly defined taxability issues.
35(c) The service supplier is taxed pursuant to this part and agrees
36to participate in the managed audit program.
37(d) The service supplier has the resources to comply with the
38managed audit instructions provided by the
board.
(a) If the board selects a service supplier's account
40for a managed audit, all of the following apply:
P10 1(1) The board shall identify all of the following:
2(A) The audit period covered by the managed audit.
3(B) The types of transactions covered by the managed audit.
4(C) The specific procedures that the service supplier is to follow
5in determining any liability.
6(D) The records to be reviewed by the service supplier.
7(E) The
manner in which the types of transactions are to be
8scheduled for review.
9(F) The time period for completion of the managed audit.
10(G) The time period for the payment of the liability and interest.
11(H) Any other criteria that the board may require for completion
12of the managed audit.
13(2) The service supplier shall:
14(A) Examine its books, records, and equipment to determine if
15it has any unreported tax liability for the audit period.
16(B) Make available to the board for verification all computations,
17books, records, and equipment examined pursuant to subparagraph
18(A).
19(b) The information provided by the service supplier pursuant
20to paragraph (2) of subdivision (a) is the same information that is
21required for the completion of any other audit that the board may
22conduct.
Upon completion of the managed audit and
24verification by the board, interest on any unpaid liability shall be
25computed at one-half the rate that would otherwise be imposed
26for liabilities covered by the audit period. Payment of the liabilities
27and interest shall be made within the time period specified by the
28board. If the requirements for the managed audit are not satisfied,
29the board may proceed to examine the records of the service
30supplier in a manner to be determined by the board under law.
Section 43507 is added to the Revenue and Taxation
32Code, to read:
(a) The board shall determine which taxpayer's accounts
34are eligible for the managed audit program in a manner that is
35consistent with the efficient use of its auditing resources and the
36maximum effectiveness of the program.
37(b) A taxpayer is not required to participate in the managed
38audit program.
Section 43507.1 is added to the Revenue and Taxation
40Code, to read:
A taxpayer’s account is eligible for the managed audit
2program only if the taxpayer meets all of the following criteria:
3(a) The taxpayer’s business or activities involve few or no
4statutory exemptions.
5(b) The taxpayer’s business or activities involve a single or a
6small number of clearly defined taxability or liability issues.
7(c) The taxpayer is taxed pursuant to this part and agrees to
8participate in the managed audit program.
9(d) The taxpayer has the resources to comply with the managed
10audit instructions provided by the
board.
Section 43507.2 is added to the Revenue and Taxation
12Code, to read:
(a) If the board selects a taxpayer’s account for a
14managed audit, all of the following apply:
15(1) The board shall identify all of the following:
16(A) The audit period covered by the managed audit.
17(B) The types of transactions or activities covered by the
18managed audit.
19(C) The specific procedures that the taxpayer is to follow in
20determining any liability.
21(D) The records to be reviewed by the taxpayer.
22(E) The manner in
which the types of transactions or activities
23are to be scheduled for review.
24(F) The time period for completion of the managed audit.
25(G) The time period for the payment of the liability and interest.
26(H) Any other criteria that the board may require for completion
27of the managed audit.
28(2) The taxpayer shall:
29(A) Examine its books, records, and equipment to determine if
30it has any unreported liability for the audit period.
31(B) Make available to the board for verification all computations,
32books, records, and equipment examined pursuant to subparagraph
33(A).
34(b) The information provided by the taxpayer pursuant to
35paragraph (2) of subdivision (a) is the same information that is
36required for the completion of any other audit that the board may
37conduct.
Section 43507.3 is added to the Revenue and Taxation
39Code, to read:
Upon completion of the managed audit and
2verification by the board, interest on any unpaid liability shall be
3computed at one-half the rate that would otherwise be imposed
4for liabilities covered by the audit period. Payment of the liabilities
5and interest shall be made within the time period specified by the
6board. If the requirements for the managed audit are not satisfied,
7the board may proceed to examine the records of the taxpayer in
8a manner to be determined by the board under law.
Section 45855.6 is added to the Revenue and Taxation
10Code, to read:
(a) The board shall determine which feepayer’s
12accounts are eligible for the managed audit program in a manner
13that is consistent with the efficient use of its auditing resources
14and the maximum effectiveness of the program.
15(b) A feepayer is not required to participate in the managed
16audit program.
Section 45855.61 is added to the Revenue and
18Taxation Code, to read:
A feepayer’s account is eligible for the managed
20audit program only if the feepayer meets all of the following
21criteria:
22(a) The feepayer’s business or activities involve few or no
23statutory exemptions.
24(b) The feepayer’s business or activities involve a single or a
25small number of clearly defined taxability or liability issues.
26(c) The feepayer is charged pursuant to this part and agrees to
27participate in the managed audit program.
28(d) The feepayer has the resources to comply with the managed
29audit instructions provided by the
board.
Section 45855.62 is added to the Revenue and
31Taxation Code, to read:
(a) If the board selects a feepayer’s account for a
33managed audit, all of the following apply:
34(1) The board shall identify all of the following:
35(A) The audit period covered by the managed audit.
36(B) The types of transactions or activities covered by the
37managed audit.
38(C) The specific procedures that the feepayer is to follow in
39determining any liability.
40(D) The records to be reviewed by the feepayer.
P13 1(E) The manner in
which the types of transactions or activities
2are to be scheduled for review.
3(F) The time period for completion of the managed audit.
4(G) The time period for the payment of the liability and interest.
5(H) Any other criteria that the board may require for completion
6of the managed audit.
7(2) The feepayer shall:
8(A) Examine its books, records, and equipment to determine if
9it has any unreported liability for the audit period.
10(B) Make available to the board for verification all computations,
11books, records, and equipment examined pursuant to subparagraph
12(A).
13(b) The information provided by the feepayer pursuant to
14paragraph (2) of subdivision (a) is the same information that is
15required for the completion of any other audit that the board may
16conduct.
Section 45855.63 is added to the Revenue and
18Taxation Code, to read:
Upon completion of the managed audit and
20verification by the board, interest on any unpaid liability shall be
21computed at one-half the rate that would otherwise be imposed
22for liabilities covered by the audit period. Payment of the liabilities
23and interest shall be made within the time period specified by the
24board. If the requirements for the managed audit are not satisfied,
25the board may proceed to examine the records of the feepayer in
26a manner to be determined by the board under law.
Section 46607 is added to the Revenue and Taxation
28Code, to read:
(a) The board shall determine which feepayer’s
30accounts are eligible for the managed audit program in a manner
31that is consistent with the efficient use of its auditing resources
32and the maximum effectiveness of the program.
33(b) A feepayer is not required to participate in the managed
34audit program.
Section 46607.1 is added to the Revenue and Taxation
36Code, to read:
A feepayer’s account is eligible for the managed audit
38program only if the feepayer meets all of the following criteria:
39(a) The feepayer’s business or activities involve few or no
40statutory exemptions.
P14 1(b) The feepayer’s business or activities involve a single or a
2small number of clearly defined taxability or liability issues.
3(c) The feepayer is charged pursuant to this part and agrees to
4participate in the managed audit program.
5(d) The feepayer has the resources to comply with the managed
6audit instructions provided by the
board.
Section 46607.2 is added to the Revenue and Taxation
8Code, to read:
(a) If the board selects a feepayer’s account for a
10managed audit, all of the following apply:
11(1) The board shall identify all of the following:
12(A) The audit period covered by the managed audit.
13(B) The types of transactions or activities covered by the
14managed audit.
15(C) The specific procedures that the feepayer is to follow in
16determining any liability.
17(D) The records to be reviewed by the feepayer.
18(E) The manner in
which the types of transactions or activities
19are to be scheduled for review.
20(F) The time period for completion of the managed audit.
21(G) The time period for the payment of the liability and interest.
22(H) Any other criteria that the board may require for completion
23of the managed audit.
24(2) The feepayer shall:
25(A) Examine its books, records, and equipment to determine if
26it has any unreported liability for the audit period.
27(B) Make available to the board for verification all computations,
28books, records, and equipment examined pursuant to subparagraph
29(A).
30(b) The information provided by the feepayer pursuant to
31paragraph (2) of subdivision (a) is the same information that is
32required for the completion of any other audit that the board may
33conduct.
Section 46607.3 is added to the Revenue and Taxation
35Code, to read:
Upon completion of the managed audit and
37verification by the board, interest on any unpaid liability shall be
38computed at one-half the rate that would otherwise be imposed
39for liabilities covered by the audit period. Payment of the liabilities
40and interest shall be made within the time period specified by the
P15 1board. If the requirements for the managed audit are not satisfied,
2the board may proceed to examine the records of the feepayer in
3a manner to be determined by the board under law.
Section 50155.6 is added to the Revenue and Taxation
5Code, to read:
(a) The board shall determine which feepayer’s
7accounts are eligible for the managed audit program in a manner
8that is consistent with the efficient use of its auditing resources
9and the maximum effectiveness of the program.
10(b) A feepayer is not required to participate in the managed
11audit program.
Section 50155.61 is added to the Revenue and
13Taxation Code, to read:
A feepayer’s account is eligible for the managed
15audit program only if the feepayer meets all of the following
16criteria:
17(a) The feepayer’s business or activities involve few or no
18statutory exemptions.
19(b) The feepayer’s business or activities involves a single or
20small number of clearly defined taxability or liability issues.
21(c) The feepayer is charged pursuant to this part and agrees to
22participate in the managed audit program.
23 (d) The feepayer has the resources to comply with the managed
24audit instructions provided by the
board.
Section 50155.62 is added to the Revenue and
26Taxation Code, to read:
(a) If the board selects a feepayer’s account for a
28managed audit, all of the following apply:
29(1) The board shall identify all of the following:
30(A) The audit period covered by the managed audit.
31(B) The types of transactions or activities covered by the
32managed audit.
33 (C) The specific procedures that the feepayer is to follow in
34determining any liability.
35(D) The records to be reviewed by the feepayer.
36(E) The manner in
which the types of transactions or activities
37are to be scheduled for review.
38(F) The time period for completion of the managed audit.
39(G) The time period for the payment of the liability and interest.
P16 1(H) Any other criteria that the board may require for completion
2of the managed audit.
3(2) The feepayer shall:
4(A) Examine its books, records, and equipment to determine if
5it has any unreported liability for the audit period.
6(B) Make available to the board for verification all computations,
7books, records, and equipment examined pursuant to subparagraph
8(A).
9(b) The information provided by the feepayer pursuant to
10paragraph (2) of subdivision (a) is the same information that is
11required for the completion of any other audit that the board may
12conduct.
Section 50155.63 is added to the Revenue and
14Taxation Code, to read:
Upon completion of the managed audit and
16verification by the board, interest on any unpaid liability shall be
17computed at one-half the rate that would otherwise be imposed
18for liabilities covered by the audit period. Payment of the liabilities
19and interest shall be made within the time period specified by the
20board. If the requirements for the managed audit are not satisfied,
21the board may proceed to examine the records of the feepayer in
22a manner to be determined by the board under law.
Section 55306 is added to the Revenue and Taxation
24Code, to read:
(a) The board shall determine which feepayer’s
26accounts are eligible for the managed audit program in a manner
27that is consistent with the efficient use of its auditing resources
28and the maximum effectiveness of the program.
29(b) A feepayer is not required to participate in the managed
30audit program.
Section 55306.1 is added to the Revenue and Taxation
32Code, to read:
A feepayer’s account is eligible for the managed audit
34program only if the feepayer meets all of the following criteria:
35(a) The feepayer’s business or activities involve few or no
36statutory exemptions.
37(b) The feepayer’s business or activities involve a single or a
38small number of clearly defined taxability or liability issues.
39 (c) The feepayer is subject to the collection procedures in this
40part and agrees to participate in the managed audit program.
P17 1(d) The feepayer has the resources to comply with the managed
2audit instructions provided by the
board.
Section 55306.2 is added to the Revenue and Taxation
4Code, to read:
(a) If the board selects a feepayer’s account for a
6managed audit, all of the following apply:
7(1) The board shall identify all of the following:
8(A) The audit period covered by the managed audit.
9(B) The types of transactions or activities covered by the
10managed audit.
11(C) The specific procedures that the feepayer is to follow in
12determining any liability.
13(D) The records to be reviewed by the feepayer.
14(E) The manner in
which the types of transactions or activities
15are to be scheduled for review.
16 (F) The time period for completion of the managed audit.
17(G) The time period for the payment of the liability and interest.
18(H) Any other criteria that the board may require for completion
19of the managed audit.
20(2) The feepayer shall:
21(A) Examine its books, records, and equipment to determine if
22it has any unreported liability for the audit period.
23 (B) Make available to the board for verification all computations,
24books, records, and equipment examined pursuant to subparagraph
25(A).
26(b) The information provided by the feepayer pursuant to
27paragraph (2) of subdivision (a) is the same information that is
28required for the completion of any other audit that the board may
29conduct.
Section 55306.3 is added to the Revenue and Taxation
31Code, to read:
Upon completion of the managed audit and
33verification by the board, interest on any unpaid liability shall be
34computed at one-half the rate that would otherwise be imposed
35for liabilities covered by the audit period. Payment of the liabilities
36and interest shall be made within the time period specified by the
37board. If the requirements for the managed audit are not satisfied,
38the board may proceed to examine the records of the feepayer in
39a manner to be determined by the board under law.
Section 60611 is added to the Revenue and Taxation
2Code, to read:
(a) The board shall determine which taxpayer’s
4accounts are eligible for the managed audit program in a manner
5that is consistent with the efficient use of its auditing resources
6and the maximum effectiveness of the program.
7(b) A taxpayer is not required to participate in the managed
8audit program.
Section 60611.1 is added to the Revenue and Taxation
10Code, to read:
A taxpayer’s account is eligible for the managed audit
12program only if the taxpayer meets all of the following criteria:
13(a) The taxpayer’s business involves few or no statutory
14exemptions.
15(b) The taxpayer’s business involves a single or a small number
16of clearly defined taxability issues.
17(c) The taxpayer is taxed pursuant to this part and agrees to
18participate in the managed audit program.
19(d) The taxpayer has the resources to comply with the managed
20audit instructions provided by the board.
Section 60611.2 is added to the Revenue and Taxation
22Code, to read:
(a) If the board selects a taxpayer’s account for a
24managed audit, all of the following apply:
25(1) The board shall identify all of the following:
26 (A) The audit period covered by the managed audit.
27(B) The types of transactions covered by the managed audit.
28(C) The specific procedures that the taxpayer is to follow in
29determining any liability.
30(D) The records to be reviewed by the taxpayer.
31(E) The manner in which the types
of transactions are to be
32scheduled for review.
33(F) The time period for completion of the managed audit.
34(G) The time period for the payment of the liability and interest.
35(H) Any other criteria that the board may require for completion
36of the managed audit.
37(2) The taxpayer shall:
38(A) Examine its books, records, and equipment to determine if
39it has any unreported tax liability for the audit period.
P19 1(B) Make available to the board for verification all computations,
2books, records, and equipment examined pursuant to subparagraph
3(A).
4(b) The information provided
by the taxpayer pursuant to
5paragraph (2) of subdivision (a) is the same information that is
6required for the completion of any other audit that the board may
7conduct.
Section 60611.3 is added to the Revenue and Taxation
9Code, to read:
Upon completion of the managed audit and
11verification by the board, interest on any unpaid liability shall be
12computed at one-half the rate that would otherwise be imposed
13for liabilities covered by the audit period. Payment of the liabilities
14and interest shall be made within the time period specified by the
15board. If the requirements for the managed audit are not satisfied,
16the board may proceed to examine the records of the taxpayer in
17a manner to be determined by the board under law.
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