Bill Text: CA SB540 | 2015-2016 | Regular Session | Chaptered


Bill Title: Franchise Tax Board: Taxpayers' Rights Advocate.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2015-10-06 - Chaptered by Secretary of State. Chapter 541, Statutes of 2015. [SB540 Detail]

Download: California-2015-SB540-Chaptered.html
BILL NUMBER: SB 540	CHAPTERED
	BILL TEXT

	CHAPTER  541
	FILED WITH SECRETARY OF STATE  OCTOBER 6, 2015
	APPROVED BY GOVERNOR  OCTOBER 6, 2015
	PASSED THE SENATE  SEPTEMBER 10, 2015
	PASSED THE ASSEMBLY  SEPTEMBER 8, 2015
	AMENDED IN ASSEMBLY  SEPTEMBER 4, 2015
	AMENDED IN ASSEMBLY  JULY 15, 2015
	AMENDED IN SENATE  APRIL 15, 2015
	AMENDED IN SENATE  APRIL 6, 2015

INTRODUCED BY   Senator Hertzberg

                        FEBRUARY 26, 2015

   An act to amend and repeal Section 21004 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 540, Hertzberg. Franchise Tax Board: Taxpayers' Rights
Advocate.
   The Katz-Harris Taxpayers' Bill of Rights Act establishes the
position of Taxpayers' Rights Advocate and provides specified
protections for taxpayers for purposes of, among other things,
determining their correct tax liability. Existing law, until January
1, 2016, authorizes the Taxpayers' Rights Advocate to abate
penalties, fees, additions to tax, or interest attributable to error
of or unreasonable delay caused by the Franchise Tax Board, as
specified. Existing law requires any relief granted in which the
total reduction exceeds $500, as adjusted, to be submitted to the
executive officer of the board for concurrence, and limits the total
relief granted to $7,500, as adjusted. Existing law authorizes relief
to be granted only if no significant aspect of the board's error or
delay is attributed to the taxpayer, as provided.
   This bill, on and after January 1, 2016, would instead require the
Taxpayers' Rights Advocate, in coordination with the Chief Counsel
of the Franchise Tax Board, to abate penalties, fees, additions to
tax, or interest attributable to error of or unreasonable delay
caused by the Franchise Tax Board, increase the limit on the amount
of relief that may be granted from $7,500 to $10,000, revise the
adjustment provision relating to that amount, and specify the
retention period for records of relief granted by the chief counsel.
The bill would require the advocate and the board to provide relief
to the taxpayer only if no significant aspect of the board's error or
delay is attributed to the taxpayer and would require the board
itself to be notified whenever relief is granted.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 21004 of the Revenue and Taxation Code, as
amended by Section 1 of Chapter 349 of the Statutes of 2012, is
amended to read:
   21004.  (a) The board shall establish the position of the
Taxpayers' Rights Advocate. The advocate or his or her designee shall
be responsible for coordinating resolution of taxpayer complaints
and problems, including any taxpayer complaints regarding
unsatisfactory treatment of taxpayers by board employees. The
advocate shall report directly to the executive officer of the board.

   (b) The advocate or his or her designee shall give highest
priority to reviewing and taking prompt and appropriate action,
including staying actions where taxpayers have suffered or will
suffer irreparable loss as the result of board action. Applicable
statutes of limitation shall be tolled during the pendency of a stay.
Any penalties and interest which would otherwise accrue shall not be
affected by the granting of a stay.
   (c) (1) On and after January 1, 2016, the Taxpayers' Rights
Advocate, in coordination with the Chief Counsel of the Franchise Tax
Board, shall provide relief pursuant to this subdivision and abate
any penalties, fees, additions to tax, or interest assessed if it is
determined that the penalties, fees, additions to tax, or interest
that have been assessed, or any part thereof, is attributable to any
of the following:
   (A) Erroneous action or erroneous inaction by the board in
processing documents filed or payments made by taxpayers.
   (B) Unreasonable delay caused by the board.
   (C) Erroneous written advice that does not qualify for relief
under Section 21012.
   (2) Relief shall be granted pursuant to this subdivision only if
no significant aspect of that error or delay can be attributed to the
taxpayer involved and relief is not available under any other
provision of this part, Part 10 (commencing with Section 17001), Part
10.2 (commencing with Section 18401), or Part 11 (commencing with
Section 23001), including any relief granted under any regulation or
other administrative pronouncement of the board.
   (3) (A) (i) Any relief granted pursuant to this subdivision in
which the total reduction in penalties, fees, additions to tax, or
interest exceeds five hundred dollars ($500) shall be submitted to
the executive officer for concurrence.
   (ii) The total relief granted pursuant to this subdivision to a
taxpayer with respect to penalties, fees, additions to tax, or
interest for a taxable year may not exceed ten thousand dollars
($10,000).
   (iii) Beginning on January 1, 2017, and annually thereafter, the
amount specified in clause (ii) shall be recomputed in accordance
with subparagraph (B) of paragraph (3) of subdivision (b) of Section
19442, modified by substituting "January 1, 2017" for "January 1,
2004."
   (B) Whenever relief is granted under this subdivision, the board
itself shall be notified and there shall be placed on file for at
least one year in the office of the executive officer of the board a
public record with respect to that relief. The public record shall
include the following:
   (i) The taxpayer's name.
   (ii) The total amount involved.
   (iii) The amount payable or refundable due to the error or delay.
   (iv) A summary of why the relief is warranted.
   (4) A refund may be paid as a result of relief granted under this
subdivision only if the applicable statute of limitations, with
respect to filing a claim for refund, remains open as of the date
that the basis for providing relief, as authorized in subparagraphs
(A) to (C), inclusive, of paragraph (1), as determined by the board.
   (d) No other entity may participate in the grant or denial of
relief pursuant to this section.
   (e) Notwithstanding any other law or rule of law, all
determinations made under paragraph (1) of subdivision (c) shall not
be subject to review in any administrative or judicial proceeding.
   (f) (1) The amendments made by Section 1 of Chapter 349 of the
Statutes of 2012 shall become operative on January 1, 2013.
   (2) The amendments made by the act adding this paragraph shall
become operative on January 1, 2016.
  SEC. 2.  Section 21004 of the Revenue and Taxation Code, as added
by Section 2 of Chapter 349 of the Statutes of 2012, is repealed.
             
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