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SB-1374 Personal income taxes: timeliness penalty: abatement.(2019-2020)

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Date Published: 03/25/2020 09:00 PM
SB1374:v98#DOCUMENT

Amended  IN  Senate  March 25, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1374


Introduced by Senator Bradford

February 21, 2020


An act to repeal Section 2196.1 of the Streets and Highways Code, relating to ports. An act to repeal and add Section 19132.5 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


SB 1374, as amended, Bradford. Port of Los Angeles and Port of Long Beach: transportation network: import and export data. Personal income taxes: timeliness penalty: abatement.
Existing law imposes penalties when a taxpayer fails to timely file an income tax return or fails to timely pay the tax due as shown on, or as required to be shown on, the tax return, unless it is shown that the failure is due to reasonable cause and not due to willful neglect.
This bill, for taxable years beginning on and after January 1, 2021, would require the Franchise Tax Board, upon request by an individual taxpayer, to grant a one­time abatement of a failure-to-file or failure-to-pay timeliness penalty if the taxpayer was not previously required to file a California personal income tax return or has not previously been granted abatement under this section, the taxpayer has filed all required returns as of the date of the request for abatement, and the taxpayer has paid, or is in a current arrangement to pay, all tax currently due.

Existing law requires the Port of Los Angeles and the Port of Long Beach to evaluate changes to the goods movement network to gauge adherence by those ports to certain state goals related to usage of, and congestion at, the ports and to collect statistics on the operation of the ports regarding compliance with federal, state, and local efforts to achieve specified objectives. Existing law requires the ports to provide certain statistical data on imports and exports to a specified state agency, state office, and the Assembly and Senate Committees on Transportation on or before January 31, 2006, and annually thereafter through 2008.

This bill would repeal the obsolete data reporting provision.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 19132.5 of the Revenue and Taxation Code is repealed.
19132.5.

(a)In the case of a qualified taxpayer, no penalty shall be assessed under Section 19132 if the return is filed timely (not later than the extended due date granted under Section 18567 or 18604) and the tax required to be paid on or before the due date of the return, without regard to extension, is paid within the following time:

(1)In the case of an individual, partnership, or fiduciary, within six months of the original due date of the return.

(2)In the case of a corporation, within seven months of the original due date of the return.

(b)Any penalty imposed under Section 19132 shall be assessed from the original due date of the return if the taxpayer fails to pay the tax within the time specified in this section.

(c)This section shall apply to payment of the amount shown as tax on the original returns required to be filed during calendar year 1994.

(d)For purposes of this section, “qualified taxpayer” means any corporation, fiduciary, partnership, or individual taxpayer to whom one of the following applies as a result of the Northridge earthquake of January 1994, any related aftershock, or any related casualty:

(1)The qualified taxpayer sustained any significant property loss.

(2)The qualified taxpayer suffered a loss of employment due to property damage suffered by his or her employer.

(3)The qualified taxpayer realized significant loss of business income from a business located within the Northridge earthquake area.

SEC. 2.

 Section 19132.5 is added to the Revenue and Taxation Code, to read:

19132.5.
 (a) (1) An individual taxpayer may elect to request a one­time abatement of a timeliness penalty under this section for a timeliness penalty that has been considered and rejected for abatement pursuant to the provisions of the section under which the penalty is imposed.
(2) An individual taxpayer may, in lieu of requesting consideration for abatement pursuant to the section under which the timeliness penalty is imposed, instead request a one­time abatement of a timeliness penalty under this section.
(b) If a taxpayer described in subdivision (a) requests, either orally or in writing, the abatement of a timeliness penalty pursuant to this section, the timeliness penalty shall be abated if all of the following apply:
(1) The taxpayer has not previously been required to file a California personal income tax return under Part 10 (commencing with Section 17001) or has not previously been granted abatement under this section.
(2) The taxpayer has filed all returns required under Part 10 (commencing with Section 17001) as of the date of the taxpayer’s request for abatement under this section.
(3) Excluding the timeliness penalty that is the subject of the abatement request under this section, the taxpayer has paid in full, or arranged to pay pursuant to an installment agreement, any tax, penalties, fees, and interest due for the required returns pursuant to paragraph (2) and the taxpayer is current with all installment payments.
(c) For purposes of this section, “timeliness penalty” means a penalty imposed under Section 19131 or 19132 for one taxable year with respect to a return filed by an individual for that taxable year.
(d) For purposes of this section:
(1) A timeliness penalty imposed and subsequently abated due to a determination of reasonable cause, or reasonable cause and not willful neglect, with respect to the taxpayer or the taxpayer’s spouse shall be considered to have not been imposed for purposes of determining eligibility for timeliness penalty abatement under this section.
(2) A timeliness penalty shall be considered imposed on the original due date of the return for the taxable year for which the penalty is imposed.
(e) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.
(f) This section shall apply to requests for abatement made for taxable years beginning on or after January 1, 2021.

SECTION 1.Section 2196.1 of the Streets and Highways Code is repealed.