Code Section Group

Revenue and Taxation Code - RTC

DIVISION 2. OTHER TAXES [6001 - 61050]

  ( Heading of Division 2 amended by Stats. 1968, Ch. 279. )


  ( Heading of Part 20 amended by Stats. 2017, Ch. 561, Sec. 241. )

CHAPTER 6. Collection of Tax [41115 - 41127.8]

  ( Chapter 6 added by Stats. 1976, Ch. 443. )

ARTICLE 4. Miscellaneous [41127.5 - 41127.8]
  ( Article 4 added by Stats. 1996, Ch. 1003, Sec. 11. )


The department shall not be subject to subdivisions (c) and (d) of Section 16307 of the Corporations Code unless, at the time of application for or issuance of a permit, license, or registration number under this part, the applicant furnishes to the department a written partnership agreement that provides that all business assets shall be held in the name of the partnership.

(Amended by Stats. 2021, Ch. 432, Sec. 124. (SB 824) Effective January 1, 2022.)


(a) The department may, in its discretion, enter into a written installment payment agreement with a person for the payment of any surcharges due, together with interest thereon and any applicable penalties, in installments over an agreed period. With mutual consent, the department and the taxpayer may alter or modify the agreement.

(b) Upon failure of a person to fully comply with the terms of an installment payment agreement with the department, the department may terminate the agreement by mailing a notice of termination to the person. The notice shall include an explanation of the basis for the termination and inform the person of the person’s right to request an administrative review of the termination. Fifteen days after the mailing of the notice, the installment payment agreement shall be void, and the total amount of the surcharge, interest, and penalties due shall be immediately payable.

(c) The department shall establish procedures for an administrative review for persons requesting that review whose installment payment agreements are terminated under subdivision (b). The collection of surcharges, interest, and penalties that are the subject of the terminated installment payment agreement may not be stayed during this administrative review process.

(d) Subdivision (b) shall not apply to any case where the department finds collection of the surcharge to be in jeopardy.

(e) Except in the case of fraud, if an installment payment agreement is entered into within 45 days from the date on which the department’s notice of determination or redetermination becomes final, and the person complies with the terms of the installment payment agreement, the department shall relieve the penalty imposed pursuant to Section 41090.

(Amended by Stats. 2021, Ch. 432, Sec. 125. (SB 824) Effective January 1, 2022.)


The department, beginning no later than January 1, 2001, shall provide each taxpayer who has an installment payment agreement in effect under Section 41127.6 an annual statement setting forth the initial balance at the beginning of the year, the payments made during the year, and the remaining balance as of the end of the year.

(Amended by Stats. 2021, Ch. 432, Sec. 126. (SB 824) Effective January 1, 2022.)


(a) A collection cost recovery fee shall be imposed on any person that fails to pay an amount of surcharge, interest, penalty, or other amount due and payable under this part. The collection cost recovery fee shall be in an amount less than or equal to the department’s costs for collection, as reasonably determined by the department. The collection cost recovery fee shall be imposed only if the department has mailed its demand notice, to that person for payment, that advises that continued failure to pay the amount due may result in collection action, including the imposition of a collection cost recovery fee.

(b) Interest shall not accrue with respect to the collection cost recovery fee provided by this section.

(c) The collection cost recovery fee imposed pursuant to this section shall be collected in the same manner as the collection of any other surcharge imposed by this part.

(d) (1) If the department finds that a person’s failure to pay any amount under this part is due to reasonable cause and circumstances beyond the person’s control, and occurred notwithstanding the exercise of ordinary care and the absence of willful neglect, the person shall be relieved of the collection cost recovery fee provided by this section.

(2) Any person seeking to be relieved of the collection cost recovery fee shall file with the department a statement under penalty of perjury setting forth the facts upon which the person bases the claim for relief.

(e) Subdivision (a) shall be operative with respect to a demand notice for payment which is mailed on or after January 1, 2011.

(f) Collection cost recovery fee revenues shall be deposited in the same manner as revenues derived from any other surcharge imposed by this part.

(Amended by Stats. 2021, Ch. 432, Sec. 127. (SB 824) Effective January 1, 2022.)

RTCRevenue and Taxation Code - RTC4.