AB 2009, as amended, 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 at 1⁄2 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 board shall determine which taxpayer’s accounts
4are eligible for the managed audit program in a manner that is
5consistent with the efficient use of its auditing resources and the
6maximum 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:
P3 1(A) The audit period covered by the managed audit.
2(B) The types of transactions covered by the managed audit.
3(C) The specific procedures that the taxpayer is to follow in
4determining any liability.
5(D) The records to be reviewed by the taxpayer.
6(E) The manner in which the types of
transactions are to be
7scheduled for review.
8(F) The time period for completion of the managed audit.
9(G) The time period for the payment of the liability and interest.
10(H) Any other criteria that the board may require for completion
11of the managed audit.
12(2) The taxpayer shall:
13(A) Examine its books and records to determine if it has any
14unreported tax liability for the audit period.
15(B) Make available to the board for verification all computations
16and books and records examined pursuant to subparagraph (A).
17(b) The information provided by the taxpayer pursuant
to
18paragraph (2) of subdivision (a) is the same information that is
19required for the completion of any other audit that the board may
20conduct.
Section 8258.3 is added to the Revenue and Taxation
22Code, to read:
Nothing in the article limits the board’s authority to
24examine the books and records of a taxpayer under Section 8253.
Section 8258.4 is added to the Revenue and Taxation
26Code, to read:
Upon completion of the managed audit and verification
28by the board, interest on any unpaid liability shall be computed at
29one-half the rate that would otherwise be imposed for liabilities
30covered by the audit period. Payment of the liabilities and interest
31shall be made within the time period specified by the board. If the
32requirements for the managed audit are not satisfied, the board
33may proceed to examine the records of the taxpayer in a manner
34to be determined by the board under law.
Section 9259 is added to the Revenue and Taxation
36Code, to read:
(a) The board shall determine which taxpayer’s accounts
38are eligible for the managed audit program in a manner that is
39consistent with the efficient use of its auditing resources and the
40maximum effectiveness of the program.
P4 1(b) A taxpayer is not required to participate in the managed
2audit program.
Section 9259.1 is added to the Revenue and Taxation
4Code, to read:
A taxpayer’s account is eligible for the managed audit
6program only if the taxpayer meets all of the following criteria:
7(a) The taxpayer’s business involves few or no statutory
8exemptions.
9(b) The taxpayer’s business involves a single or a small number
10of clearly defined taxability issues.
11(c) The taxpayer is taxed pursuant to this part and agrees to
12participate in the managed audit program.
13(d) The taxpayer has the resources to comply with the managed
14audit instructions provided by the board.
Section 9259.2 is added to the Revenue and Taxation
16Code, to read:
(a) If the board selects a taxpayer’s account for a
18managed audit, all of the following apply:
19(1) The board shall identify all of the following:
20(A) The audit period covered by the managed audit.
21(B) The types of transactions covered by the managed audit.
22(C) The specific procedures that the taxpayer is to follow in
23determining any liability.
24(D) The records to be reviewed by the taxpayer.
25(E) The manner in which the types of
transactions are to be
26scheduled for review.
27(F) The time period for completion of the managed audit.
28(G) The time period for the payment of the liability and interest.
29(H) Any other criteria that the board may require for completion
30of the managed audit.
31(2) The taxpayer shall:
32(A) Examine its books, papers, records, and equipment to
33determine if it has any unreported tax liability for the audit period.
34(B) Make available to the board for verification all computations
35and books, papers, records, and equipment examined pursuant to
36subparagraph (A).
37(b) The
information provided by the taxpayer pursuant to
38paragraph (2) of subdivision (a) is the same information that is
39required for the completion of any other audit that the board may
40conduct.
Section 9259.3 is added to the Revenue and Taxation
2Code, to read:
Nothing in this article limits the board’s authority to
4examine the books, papers, records, and equipment of a taxpayer
5under Section 9254.
Section 9259.4 is added to the Revenue and Taxation
7Code, to read:
Upon completion of the managed audit and verification
9by the board, interest on any unpaid liability shall be computed at
10one-half the rate that would otherwise be imposed for liabilities
11covered by the audit period. Payment of the liabilities and interest
12shall be made within the time period specified by the board. If the
13requirements for the managed audit are not satisfied, the board
14may proceed to examine the records of the taxpayer in a manner
15to be determined by the board under law.
Section 30457 is added to the Revenue and Taxation
17Code, to read:
(a) The board shall determine which taxpayer’s
19accounts are eligible for the managed audit program in a manner
20that is consistent with the efficient use of its auditing resources
21and the maximum effectiveness of the program.
22(b) A taxpayer is not required to participate in the managed
23audit program.
Section 30457.1 is added to the Revenue and Taxation
25Code, to read:
A taxpayer’s account is eligible for the managed audit
27program only if the taxpayer meets all of the following criteria:
28(a) The taxpayer’s business involves few or no statutory
29exemptions.
30(b) The taxpayer’s business involves a single or a small number
31of clearly defined taxability issues.
32(c) The taxpayer is taxed pursuant to this part and agrees to
33participate in the managed audit program.
34(d) The taxpayer has the resources to comply with the managed
35audit instructions provided by the board.
Section 30457.2 is added to the Revenue and Taxation
37Code, to read:
(a) If the board selects a taxpayer’s account for a
39managed audit, all of the following apply:
40(1) The board shall identify all of the following:
P6 1(A) The audit period covered by the managed audit.
2(B) The types of transactions covered by the managed audit.
3(C) The specific procedures that the taxpayer is to follow in
4determining any liability.
5(D) The records to be reviewed by the taxpayer.
6(E) The manner in which the types
of transactions are to be
7scheduled for review.
8(F) The time period for completion of the managed audit.
9(G) The time period for the payment of the liability and interest.
10(H) Any other criteria that the board may require for completion
11of the managed audit.
12(2) The taxpayer shall:
13(A) Examine its books, papers, records, and equipment to
14determine if it has any unreported tax liability for the audit period.
15(B) Make available to the board for verification all computations
16and books, papers, records, and equipment examined pursuant to
17subparagraph (A).
18(b) The
information provided by the taxpayer pursuant to
19paragraph (2) of subdivision (a) is the same information that is
20required for the completion of any other audit that the board may
21conduct.
Section 30457.3 is added to the Revenue and Taxation
23Code, to read:
Nothing in this article limits the board’s authority to
25examine the books, papers, records, and equipment of a taxpayer
26under Section 30454.
Section 30457.4 is added to the Revenue and Taxation
28Code, to read:
Upon completion of the managed audit and
30verification by the board, interest on any unpaid liability shall be
31computed at one-half the rate that would otherwise be imposed
32for liabilities covered by the audit period. Payment of the liabilities
33and interest shall be made within the time period specified by the
34board. If the requirements for the managed audit are not satisfied,
35the board may proceed to examine the records of the taxpayer in
36a manner to be determined by the board under law.
Section 32458 is added to the Revenue and Taxation
38Code, to read:
(a) The board shall determine which taxpayer’s
40accounts are eligible for the managed audit program in a manner
P7 1that is consistent with the efficient use of its auditing resources
2and the maximum effectiveness of the program.
3(b) A taxpayer is not required to participate in the managed
4audit program.
Section 32458.1 is added to the Revenue and Taxation
6Code, to read:
A taxpayer’s account is eligible for the managed audit
8program only if the taxpayer meets all of the following criteria:
9(a) The taxpayer’s business involves few or no statutory
10exemptions.
11(b) The taxpayer’s business involves a single or a small number
12of clearly defined taxability issues.
13(c) The taxpayer is taxed pursuant to this part and agrees to
14participate in the managed audit program.
15(d) The taxpayer has the resources to comply with the managed
16audit instructions provided by the board.
Section 32458.2 is added to the Revenue and Taxation
18Code, to read:
(a) If the board selects a taxpayer’s account for a
20managed audit, all of the following apply:
21(1) The board shall identify all of the following:
22(A) The audit period covered by the managed audit.
23(B) The types of transactions covered by the managed audit.
24(C) The specific procedures that the taxpayer is to follow in
25determining any liability.
26(D) The records to be reviewed by the taxpayer.
27(E) The manner in which the types
of transactions are to be
28scheduled for review.
29(F) The time period for completion of the managed audit.
30(G) The time period for the payment of the liability and interest.
31(H) Any other criteria that the board may require for completion
32of the managed audit.
33(2) The taxpayer shall:
34(A) Examine its books and records to determine if it has any
35unreported tax liability for the audit period.
36(B) Make available to the board for verification all computations
37and books and records examined pursuant to subparagraph (A).
38(b) The information provided by the taxpayer
pursuant to
39paragraph (2) of subdivision (a) is the same information that is
P8 1required for the completion of any other audit that the board may
2conduct.
Section 32458.3 is added to the Revenue and Taxation
4Code, to read:
Nothing in this article limits the board’s authority to
6examine the books and records of a taxpayer under Section 32453.
Section 32458.4 is added to the Revenue and Taxation
8Code, to read:
Upon completion of the managed audit and
10verification by the board, interest on any unpaid liability shall be
11computed at one-half the rate that would otherwise be imposed
12for liabilities covered by the audit period. Payment of the liabilities
13and interest shall be made within the time period specified by the
14board. If the requirements for the managed audit are not satisfied,
15the board may proceed to examine the records of the taxpayer in
16a manner to be determined by the board under law.
Section 40177 is added to the Revenue and Taxation
18Code, to read:
(a) The board shall determine which electric utility’s
20accounts are eligible for the managed audit program in a manner
21that is consistent with the efficient use of its auditing resources
22and the maximum effectiveness of the program.
23(b) An electric utility is not required to participate in the
24managed audit program.
Section 40177.1 is added to the Revenue and Taxation
26Code, to read:
An electric utility’s account is eligible for the
28managed audit program only if the electric utility meets all of the
29following criteria:
30(a) The electric utility’s business involves few or no statutory
31exemptions.
32(b) The electric utility’s business involves a single or small
33number of clearly defined taxability issues.
34(c) The electric utility is subject to this part and agrees to
35participate in the managed audit program.
36(d) The electric utility has the resources to comply with the
37managed audit instructions provided by the
board.
Section 40177.2 is added to the Revenue and Taxation
39Code, to read:
(a) If the board selects an electric utility’s account
2for a managed audit, all of the following apply:
3(1) The board shall identify all of the following:
4(A) The audit period covered by the managed audit.
5(B) The types of transactions covered by the managed audit.
6(C) The specific procedures that the electric utility is to follow
7in determining any liability.
8(D) The records to be reviewed by the electric utility.
9(E) The
manner in which the types of transactions are to be
10scheduled for review.
11(F) The time period for completion of the managed audit.
12(G) The time period for the payment of the liability and interest.
13(H) Any other criteria that the board may require for completion
14of the managed audit.
15(2) The electric utility shall:
16(A) Examine its records, meters, and equipment to determine
17if it has any unreported tax liability for the audit period.
18(B) Make available to the board for verification all computations
19and records, meters, and equipment examined pursuant to
20subparagraph (A).
21(b) The information provided by the electric utility pursuant to
22paragraph (2) of subdivision (a) is the same information that is
23required for the completion of any other audit that the board may
24conduct.
Section 40177.3 is added to the Revenue and Taxation
26Code, to read:
Nothing in the article limits the board’s authority to
28examine the records, meters, and equipment of an electric utility
29under Section 40174.
Section 40177.4 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 electric utility
39in a manner to be determined by the board under law.
Section 41133 is added to the Revenue and Taxation
2Code, to read:
(a) The board shall determine which service supplier’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 service supplier is not required to participate in the
8managed audit program.
Section 41133.1 is added to the Revenue and Taxation
10Code, to read:
A service supplier’s account is eligible for the
12managed audit program only if the service supplier meets all of
13the following criteria:
14(a) The service supplier’s business involves few or no statutory
15exemptions.
16(b) The service supplier’s business involves a single or small
17number of clearly defined taxability issues.
18(c) The service supplier is taxed pursuant to this part and agrees
19to participate in the managed audit program.
20(d) The service supplier has the resources to comply with the
21managed audit instructions provided by the
board.
Section 41133.2 is added to the Revenue and Taxation
23Code, to read:
(a) If the board selects a service supplier’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 service supplier is to follow
30in determining any liability.
31(D) The records to be reviewed by the service supplier.
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 service supplier shall:
39(A) Examine its records and returns to determine if it has any
40unreported tax liability for the audit period.
P11 1(B) Make available to the board for verification all computations
2and records and returns examined pursuant to subparagraph (A).
3(b) The
information provided by the service supplier pursuant
4to paragraph (2) of subdivision (a) is the same information that is
5required for the completion of any other audit that the board may
6conduct.
Section 41133.3 is added to the Revenue and Taxation
8Code, to read:
Nothing in this article limits the board’s authority to
10inspect and audit all records and returns of a service supplier under
11Section 41130.
Section 41133.4 is added to the Revenue and Taxation
13Code, to read:
Upon completion of the managed audit and
15verification by the board, interest on any unpaid liability shall be
16computed at one-half the rate that would otherwise be imposed
17for liabilities covered by the audit period. Payment of the liabilities
18and interest shall be made within the time period specified by the
19board. If the requirements for the managed audit are not satisfied,
20the board may proceed to examine the records of the service
21supplier in a manner to be determined by the board under law.
Section 43507 is added to the Revenue and Taxation
23Code, to read:
(a) The board shall determine which taxpayer’s
25accounts are eligible for the managed audit program in a manner
26that is consistent with the efficient use of its auditing resources
27and the maximum effectiveness of the program.
28(b) A taxpayer is not required to participate in the managed
29audit program.
Section 43507.1 is added to the Revenue and Taxation
31Code, to read:
A taxpayer’s account is eligible for the managed audit
33program only if the taxpayer meets all of the following criteria:
34(a) The taxpayer’s business or activities involve few or no
35statutory exemptions.
36(b) The taxpayer’s business or activities involve a single or a
37small number of clearly defined taxability or liability issues.
38(c) The taxpayer is taxed pursuant to this part and agrees to
39participate in the managed audit program.
P12 1(d) The taxpayer has the resources to comply with the managed
2audit instructions provided by the
board.
Section 43507.2 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 or activities covered by the
10managed audit.
11(C) The specific procedures that the taxpayer is to follow in
12determining any liability.
13(D) The records to be reviewed by the taxpayer.
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 taxpayer shall:
21(A) Examine its books and records to determine if it has any
22unreported liability for the audit period.
23(B) Make available to the board for verification all computations
24and books and records examined pursuant to subparagraph (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 43507.3 is added to the Revenue and Taxation
30Code, to read:
Nothing in this article limits the board’s authority to
32examine the books and records of a taxpayer under Section 43502.
Section 43507.4 is added to the Revenue and Taxation
34Code, to read:
Upon completion of the managed audit and
36verification by the board, interest on any unpaid liability shall be
37computed at one-half the rate that would otherwise be imposed
38for liabilities covered by the audit period. Payment of the liabilities
39and interest shall be made within the time period specified by the
40board. If the requirements for the managed audit are not satisfied,
P13 1the board may proceed to examine the records of the taxpayer in
2a manner to be determined by the board under law.
Section 45855.6 is added to the Revenue and Taxation
4Code, to read:
(a) The board shall determine which feepayer’s
6accounts are eligible for the managed audit program in a manner
7that is consistent with the efficient use of its auditing resources
8and the maximum effectiveness of the program.
9(b) A feepayer is not required to participate in the managed
10audit program.
Section 45855.6.1 is added to the Revenue and
12Taxation Code, to read:
A feepayer’s account is eligible for the managed
14audit program only if the feepayer meets all of the following
15criteria:
16(a) The feepayer’s business or activities involve few or no
17statutory exemptions.
18(b) The feepayer’s business or activities involve a single or a
19small number of clearly defined taxability or liability issues.
20(c) The feepayer is subject to the fee imposed pursuant to
21Section 48000 of the Public Resources Code 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 45855.6.2 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.
P14 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 and records to determine if it has any
5unreported liability for the audit period.
6(B) Make available to the board for verification all computations
7and books and records examined pursuant to subparagraph (A).
8(b) The information
provided by the feepayer pursuant to
9paragraph (2) of subdivision (a) is the same information that is
10required for the completion of any other audit that the board may
11conduct.
Section 45855.6.3 is added to the Revenue and
13Taxation Code, to read:
Nothing in this article limits the board’s authority
15to examine the books and records of abegin delete fee payerend deletebegin insert feepayerend insert under
16Section 45852.
Section 45855.6.4 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.
P15 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 subject to the fee imposed pursuant to
4Section 8670.40 or Section 8670.48 of the Government Code and
5agrees to participate in the managed audit program.
6(d) The feepayer has the resources to comply with the managed
7audit
instructions provided by the board.
Section 46607.2 is added to the Revenue and Taxation
9Code, to read:
(a) If the board selects a feepayer’s account for a
11managed audit, all of the following apply:
12(1) The board shall identify all of the following:
13(A) The audit period covered by the managed audit.
14(B) The types of transactions or activities covered by the
15managed audit.
16(C) The specific procedures that the feepayer is to follow in
17determining any liability.
18(D) The records to be reviewed by the feepayer.
19(E) The manner in
which the types of transactions or activities
20are to be scheduled for review.
21(F) The time period for completion of the managed audit.
22(G) The time period for the payment of the liability and interest.
23(H) Any other criteria that the board may require for completion
24of the managed audit.
25(2) The feepayer shall:
26(A) Examine its books and records to determine if it has any
27unreported liability for the audit period.
28(B) Make available to the board for verification all computations
29and books and records examined pursuant to subparagraph (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:
Nothing in this article limits the board’s authority to
37examine the books and records of a feepayer under Section 46603.
Section 46607.4 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 feepayer in
8a manner to be determined by the board under law.
Section 50155.6 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 50155.6.1 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 activitiesbegin delete involvesend deletebegin insert involveend insert a single
25or small number of clearly defined taxability or liability issues.
26(c) The feepayer is subject to the fee imposed pursuant to
27Section 25299.41 of the Health and Safety Code and
agrees to
28participate in the managed audit program.
29(d) The feepayer has the resources to comply with the managed
30audit instructions provided by the board.
Section 50155.6.2 is added to the Revenue and
32Taxation Code, to read:
(a) If the board selects a feepayer’s account for a
34managed audit, all of the following apply:
35(1) The board shall identify all of the following:
36(A) The audit period covered by the managed audit.
37(B) The types of transactions or activities covered by the
38managed audit.
39(C) The specific procedures that the feepayer is to follow in
40determining any liability.
P17 1(D) The records to be reviewed by the feepayer.
2(E) The manner in
which the types of transactions or activities
3are to be scheduled for review.
4(F) The time period for completion of the managed audit.
5(G) The time period for the payment of the liability and interest.
6(H) Any other criteria that the board may require for completion
7of the managed audit.
8(2) The feepayer shall:
9(A) Examine its books and records to determine if it has any
10unreported liability for the audit period.
11(B) Make available to the board for verification all computations
12and books and records examined pursuant to subparagraph (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 50155.6.3 is added to the Revenue and
18Taxation Code, to read:
Nothing in this article limits the board’s authority
20to examine the books and records of abegin delete fee payerend deletebegin insert feepayerend insert under
21Section 50153.
Section 50155.6.4 is added to the Revenue and
23Taxation Code, to read:
Upon completion of the managed audit and
25verification by the board, interest on any unpaid liability shall be
26computed at one-half the rate that would otherwise be imposed
27for liabilities covered by the audit period. Payment of the liabilities
28and interest shall be made within the time period specified by the
29board. If the requirements for the managed audit are not satisfied,
30the board may proceed to examine the records of the feepayer in
31a manner to be determined by the board under law.
Section 55306 is added to the Revenue and Taxation
33Code, to read:
(a) The board shall determine which feepayer’s
35accounts are eligible for the managed audit program in a manner
36that is consistent with the efficient use of its auditing resources
37and the maximum effectiveness of the program.
38(b) A feepayer is not required to participate in the managed
39audit program.
Section 55306.1 is added to the Revenue and Taxation
2Code, to read:
A feepayer’s account is eligible for the managed audit
4program only if the feepayer meets all of the following criteria:
5(a) The feepayer’s business or activities involve few or no
6statutory exemptions.
7(b) The feepayer’s business or activities involve a single or a
8small number of clearly defined taxability or liability issues.
9(c) The feepayer is liable for payment of a fee collected pursuant
10tobegin delete this
partend delete
11program.
12(d) The feepayer has the resources to comply with the managed
13audit instructions provided by the board.
Section 55306.2 is added to the Revenue and Taxation
15Code, to read:
(a) If the board selects a feepayer’s account for a
17managed audit, all of the following apply:
18(1) The board shall identify all of the following:
19(A) The audit period covered by the managed audit.
20(B) The types of transactions or activities covered by the
21managed audit.
22(C) The specific procedures that the feepayer is to follow in
23determining any liability.
24(D) The records to be reviewed by the feepayer.
25(E) The manner in
which the types of transactions or activities
26are to be scheduled for review.
27(F) The time period for completion of the managed audit.
28(G) The time period for the payment of the liability and interest.
29(H) Any other criteria that the board may require for completion
30of the managed audit.
31(2) The feepayer shall:
32(A) Examine its books and records to determine if it has any
33unreported liability for the audit period.
34(B) Make available to the board for verification all computations
35books and records examined pursuant to subparagraph (A).
36(b) The information provided
by the feepayer pursuant to
37paragraph (2) of subdivision (a) is the same information that is
38required for the completion of any other audit that the board may
39conduct.
Section 55306.3 is added to the Revenue and Taxation
2Code, to read:
Nothing in this article limits the board’s authority to
4examine the books and records of a feepayer under Section 55302.
Section 55306.4 is added to the Revenue and Taxation
6Code, to read:
Upon completion of the managed audit and
8verification by the board, interest on any unpaid liability shall be
9computed at one-half the rate that would otherwise be imposed
10for liabilities covered by the audit period. Payment of the liabilities
11and interest shall be made within the time period specified by the
12board. If the requirements for the managed audit are not satisfied,
13the board may proceed to examine the records of the feepayer in
14a manner to be determined by the board under law.
Section 60611 is added to the Revenue and Taxation
16Code, to read:
(a) The board shall determine which taxpayer’s
18accounts are eligible for the managed audit program in a manner
19that is consistent with the efficient use of its auditing resources
20and the maximum effectiveness of the program.
21(b) A taxpayer is not required to participate in the managed
22audit program.
Section 60611.1 is added to the Revenue and Taxation
24Code, to read:
A taxpayer’s account is eligible for the managed audit
26program only if the taxpayer meets all of the following criteria:
27(a) The taxpayer’s business involves few or no statutory
28exemptions.
29(b) The taxpayer’s business involves a single or a small number
30of clearly defined taxability issues.
31(c) The taxpayer is taxed pursuant to this part and agrees to
32participate in the managed audit program.
33(d) The taxpayer has the resources to comply with the managed
34audit instructions provided by the board.
Section 60611.2 is added to the Revenue and Taxation
36Code, to read:
(a) If the board selects a taxpayer’s account for a
38managed audit, all of the following apply:
39(1) The board shall identify all of the following:
40(A) The audit period covered by the managed audit.
P20 1(B) The types of transactions covered by the managed audit.
2(C) The specific procedures that the taxpayer is to follow in
3determining any liability.
4(D) The records to be reviewed by the taxpayer.
5(E) The manner in which the types
of transactions are to be
6scheduled for review.
7(F) The time period for completion of the managed audit.
8(G) The time period for the payment of the liability and interest.
9(H) Any other criteria that the board may require for completion
10of the managed audit.
11(2) The taxpayer shall:
12(A) Examine its books, records, and equipment to determine if
13it has any unreported tax liability for the audit period.
14(B) Make available to the board for verification all computations
15and books, records, and equipment examined pursuant to
16subparagraph (A).
17(b) The information
provided by the taxpayer pursuant to
18paragraph (2) of subdivision (a) is the same information that is
19required for the completion of any other audit that the board may
20conduct.
Section 60611.3 is added to the Revenue and Taxation
22Code, to read:
Nothing in this article limits the board’s authority to
24examine the books, records, and equipment of a taxpayer under
25Section 60606.
Section 60611.4 is added to the Revenue and Taxation
27Code, to read:
Upon completion of the managed audit and
29verification by the board, interest on any unpaid liability shall be
30computed at one-half the rate that would otherwise be imposed
31for liabilities covered by the audit period. Payment of the liabilities
32and interest shall be made within the time period specified by the
33board. If the requirements for the managed audit are not satisfied,
34the board may proceed to examine the records of the taxpayer in
35a manner to be determined by the board under law.
O
97