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AB-449 Income taxes: administration.(2017-2018)

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Date Published: 05/01/2017 09:00 PM
AB449:v98#DOCUMENT

Amended  IN  Assembly  May 01, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 449


Introduced by Assembly Member Calderon

February 13, 2017


An act to amend Section 19133 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 449, as amended, Calderon. Income taxes: administration.
Under existing law, the Franchise Tax Board is authorized to impose a penalty for failure to file a return upon notice and demand and failure to furnish information in response to a written request. Under existing law, this penalty amount is 25% of the amount of tax determined to be owed or of any deficiency tax assessed by the Franchise Tax Board.
This bill would instead bill, instead, for taxable years beginning on and after January 1, 2018, would reduce the penalty amount that the Franchise Tax Board may impose to 15% of the amount of total unpaid tax as of the date and time the notice and demand is issued or of any deficiency tax assessed. The bill also would require the Franchise Tax Board, upon request by a taxpayer, to abate this penalty if the Franchise Tax Board has not imposed on the taxpayer a penalty for these reasons in the year of the request or prior 4 years and, as of the date of the request for abatement, the taxpayer has filed the information or return and has paid all tax due.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 19133 of the Revenue and Taxation Code is amended to read:

19133.
 If (a) For taxable years beginning before January 1, 2018, if any taxpayer fails or refuses to furnish any information requested in writing by the Franchise Tax Board or fails or refuses to make and file a return required by this part upon notice and demand by the Franchise Tax Board, then, unless the failure is due to reasonable cause and not willful neglect, the Franchise Tax Board may add a penalty of 15 25 percent of the amount of the total unpaid tax determined pursuant to Section 19087 or of any deficiency tax assessed by the Franchise Tax Board concerning the assessment of which the information or return was required.
(b) (1) For taxable years beginning on and after January 1, 2018, if any taxpayer fails or refuses to furnish any information requested in writing by the Franchise Tax Board or fails or refuses to make and file a return required by this part upon notice and demand by the Franchise Tax Board, then, unless the failure is due to reasonable cause and not willful neglect, the Franchise Tax Board may add a penalty of 15 percent of the amount of the total unpaid tax as of the date and time the notice and demand is issued by the Franchise Tax Board or of any deficiency tax assessed by the Franchise Tax Board concerning the assessment of which the information or return was required.
(2) If a taxpayer described in paragraph (1) requests, either orally or in writing, the abatement of a penalty added pursuant to this subdivision, the penalty shall be abated if all of the following apply:
(A) A penalty under this section has not been imposed on the taxpayer by the Franchise Tax Board in the calendar year of the request for abatement or in the immediately preceding four taxable years.
(B) The taxpayer has filed the information or return as of the date of the taxpayer’s request for abatement under this paragraph.
(C) The taxpayer has paid in full the tax that is due as of the date of the taxpayer’s request for abatement under this paragraph.