Code Section Group

Revenue and Taxation Code - RTC

DIVISION 2. OTHER TAXES [6001 - 61050]

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

PART 20. EMERGENCY TELEPHONE USERS SURCHARGE ACT [41001 - 41176]

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

CHAPTER 7. Administration [41128 - 41176]

  ( Chapter 7 added by Stats. 1976, Ch. 443. )

ARTICLE 1. Regulations, Records and Reports [41128 - 41133.4]
  ( Article 1 added by Stats. 1976, Ch. 443. )

41128.
  

The department shall enforce the provisions of this part and may prescribe, adopt, and enforce rules and regulations relating to the administration and enforcement of this part. The department shall not prescribe, adopt, or enforce any rule or regulation that has the effect, directly or indirectly, of altering the terms and conditions of service of a service supplier serving the general public, other than the imposition of the surcharge.

(Amended by Stats. 2021, Ch. 432, Sec. 128. (SB 824) Effective January 1, 2022.)

41129.
  

Every service supplier or seller in this state shall keep such records pertaining thereto in such form as the department may require.

(Amended by Stats. 2019, Ch. 54, Sec. 35. (SB 96) Effective July 1, 2019.)

41130.
  

Upon proper notification to the service supplier or seller, the department or its authorized representative shall have the right to inspect and audit all records and returns of the service supplier or seller at all reasonable times.

(Amended by Stats. 2019, Ch. 54, Sec. 36. (SB 96) Effective July 1, 2019.)

41131.
  

The department shall have full access to records of the Public Utilities Commission, and any political subdivision or public agency of this state that regulates, operates, or owns a public utility, which pertain to the furnishing of telephone communication services in this state.

(Amended by Stats. 2021, Ch. 432, Sec. 129. (SB 824) Effective January 1, 2022.)

41132.
  

(a) Except as otherwise provided by law, any person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns under Chapter 4 (commencing with Section 41050), or any person who for compensation prepares any such return for any other person, and who knowingly or recklessly does either of the following, shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined not more than one thousand dollars ($1,000) or imprisoned no more than one year, or both, together with the costs of prosecution:

(1) Discloses any information furnished to him or her for, or in connection with, the preparation of the return.

(2) Uses that information for any purpose other than to prepare, or assist in preparing, the return.

(b) Subdivision (a) shall not apply to disclosure of information if that disclosure is made pursuant to the person’s consent or pursuant to a subpoena, court order, or other compulsory legal process.

(Added by Stats. 2000, Ch. 1052, Sec. 54. Effective January 1, 2001.)

41133.
  

(a) The department shall determine which service supplier’s or seller’s accounts are eligible for the managed audit program in a manner that is consistent with the efficient use of its auditing resources and the maximum effectiveness of the program.

(b) A service supplier or seller is not required to participate in the managed audit program.

(Amended by Stats. 2021, Ch. 432, Sec. 130. (SB 824) Effective January 1, 2022.)

41133.1.
  

A service supplier’s or seller’s account is eligible for the managed audit program only if the service supplier or seller meets all of the following criteria:

(a) The service supplier’s or seller’s business involves few or no statutory exemptions.

(b) The service supplier’s or seller’s business involves a single or small number of clearly defined taxability issues.

(c) The service supplier or seller pays a surcharge pursuant to this part and agrees to participate in the managed audit program.

(d) The service supplier or seller has the resources to comply with the managed audit instructions provided by the department.

(Amended by Stats. 2021, Ch. 432, Sec. 131. (SB 824) Effective January 1, 2022.)

41133.2.
  

(a) If the department selects a service supplier’s or seller’s account for a managed audit, all of the following apply:

(1) The department shall identify all of the following:

(A) The audit period covered by the managed audit.

(B) The types of transactions covered by the managed audit.

(C) The specific procedures that the service supplier or seller is to follow in determining any liability.

(D) The records to be reviewed by the service supplier or seller.

(E) The manner in which the types of transactions are to be scheduled for review.

(F) The time period for completion of the managed audit.

(G) The time period for the payment of the liability and interest.

(H) Any other criteria that the department may require for completion of the managed audit.

(2) The service supplier or seller shall:

(A) Examine its records and returns to determine if it has any unreported surcharge liability for the audit period.

(B) Make available to the department for verification all computations and records and returns examined pursuant to subparagraph (A).

(b) The information provided by the service supplier or seller pursuant to paragraph (2) of subdivision (a) is the same information that is required for the completion of any other audit that the department may conduct.

(Amended by Stats. 2021, Ch. 432, Sec. 132. (SB 824) Effective January 1, 2022.)

41133.3.
  

This article does not limit the department’s authority to inspect and audit all records and returns of a service supplier or seller under Section 41130.

(Amended by Stats. 2021, Ch. 432, Sec. 133. (SB 824) Effective January 1, 2022.)

41133.4.
  

Upon completion of the managed audit and verification by the department, interest on any unpaid liability shall be computed at one-half the rate that would otherwise be imposed for liabilities covered by the audit period. Payment of the liabilities and interest shall be made within the time period specified by the department. If the requirements for the managed audit are not satisfied, the department may proceed to examine the records of the service supplier or seller in a manner to be determined by the department under law.

(Amended by Stats. 2021, Ch. 432, Sec. 134. (SB 824) Effective January 1, 2022.)

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