Bill Text: CA SB950 | 2011-2012 | Regular Session | Introduced
Bill Title: Sales and use taxes: administration: tax amnesty.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-03-28 - Set, first hearing. Hearing canceled at the request of author. [SB950 Detail]
Download: California-2011-SB950-Introduced.html
BILL NUMBER: SB 950 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Alquist
JANUARY 4, 2012
An act to repeal and add Article 2 (commencing with Section 7070)
of Chapter 8 of Part 1 of Division 2 of the Revenue and Taxation
Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 950, as introduced, Alquist. Sales and use taxes:
administration: tax amnesty.
The Sales and Use Tax Law imposes sales and use taxes which are
administered by the State Board of Equalization.
This bill would require the board to develop and administer a tax
amnesty program for taxpayers subject to sales taxes and for
taxpayers who are qualified purchasers, as defined, subject to use
taxes during a 2-month period beginning ____, and ending ____,
inclusive, or during any other 2-month period ending before ____, as
provided.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 2 (commencing with Section 7070) of Chapter 8
of Part 1 of Division 2 of the Revenue and Taxation Code is repealed.
SEC. 2. Article 2 (commencing with Section 7070) is added to
Chapter 8 of Part 1 of Division 2 of the Revenue and Taxation Code,
to read:
Article 2. Tax Amnesty Program
7070. The board shall develop and administer a tax amnesty
program for taxpayers subject to the sales taxes imposed under
Chapter 2 (commencing with Section 6051) of this part and Section 35
of Article XIII of the California Constitution and for taxpayers who
are qualified purchasers as defined in Section 6225 subject to the
use taxes imposed under Chapter 3 (commencing with Section 6201) of
this part and Section 35 of Article XIII of the California
Constitution, as provided in this article.
7071. The tax amnesty program shall be conducted for a two month
period beginning ____ through ____, inclusive, or during a timeframe
ending no later than ____. The program shall apply to tax liabilities
due and payable for tax reporting periods beginning before January
1, 2012.
7072. (a) For any taxpayer who meets the requirements of Section
7073:
(1) The board shall waive all penalties imposed by this part, for
the tax reporting periods for which tax amnesty is allowed for the
nonreporting or underreporting of tax liabilities or the nonpayment
of any taxes previously determined or proposed to be determined.
(2) Except as provided in subdivision (b), no criminal action
shall be brought against the taxpayer, for the tax reporting periods
for which tax amnesty is requested, for the nonreporting or
underreporting of tax liabilities.
(b) This section does not apply to violations of this part for
which, as of the first day of the amnesty period specified in Section
7071, (1) the taxpayer is on notice of a criminal investigation by a
complaint having been filed against him or her or by written notice
having been mailed to him or her that he or she is under criminal
investigation, or (2) a court proceeding has already been initiated.
(c) No refund or credit shall be granted of any penalty paid prior
to the time the taxpayer makes a request for tax amnesty pursuant to
Section 7073.
7073. (a) This article shall apply to any taxpayer who, during
the amnesty period specified in Section 7071, meets all of the
following:
(1) Is eligible to participate in the tax amnesty program.
(2) Files a completed amnesty application with the board, signed
under penalty of perjury, to participate in the tax amnesty program.
(3) Within 60 days after the conclusion of the tax amnesty period,
does all of the following:
(A) Files completed tax returns for all tax reporting periods for
which he or she has not previously filed a tax return and files
completed amended returns for all tax reporting periods for which he
or she underreported his or her tax liability.
(B) Pays in full the taxes and interest due for all periods for
which amnesty is requested, or applies for an installment agreement
under subdivision (b).
(C) For taxpayers who have not paid in full any tax liabilities
due and payable for tax reporting periods beginning before January 1,
2012, pays in full the taxes and interest due for each period for
that portion of the proposed determination for each period for which
amnesty is requested or applies for an installment payment agreement
under subdivision (b).
(4) In the case of any taxpayer that has filed for bankruptcy
protection under Title 11 of the United States Code, submits an order
from a Federal Bankruptcy Court allowing the taxpayer to participate
in the amnesty program.
(b) The board may enter into an installment payment agreement in
lieu of the complete payment required under subparagraph (B) of
paragraph (3) of subdivision (a), but only if final payment under the
terms of that installment payment agreement is due and is paid no
later than ____. The installment payment agreement shall include
interest on the outstanding amount due at the rate prescribed by law.
Failure by the taxpayer to fully comply with the terms of the
installment payment agreement shall render the waiver of penalties
null and void, unless the board determines that the failure was due
to reasonable causes, and the total amount of tax, interest, and all
penalties shall be immediately due and payable.
(c) If, subsequent to the amnesty period specified in Section
7071, the board issues a deficiency determination upon a return filed
pursuant to subdivision (a), or upon any other nonreporting or
underreporting of tax liability by any person who could have
otherwise been eligible for amnesty, the board shall impose penalties
at a rate that is double the rate of penalties described in law and
criminal action may be brought under this part only with respect to
the difference between the amount shown on that return and the
correct amount of tax, or the amount of unreported or underreported
tax, whichever the case may be. This action may not invalidate any
waivers granted under Section 7072.
(d) If the board issues a deficiency determination under
conditions described in subdivision (c), the board may issue that
deficiency determination within 10 years from the last day of the
calendar month following the quarterly period for which the amount is
proposed to be determined.
(e) The application required under paragraph (2) of subdivision
(a) shall be in the form and manner specified by the board, but in no
case shall a mere payment of any taxes and interest due, in whole or
in part, for any period otherwise eligible for amnesty under this
part, be deemed to constitute an acceptable amnesty application under
this part. For purposes of the preceding sentence, the application
of a refund from one period to offset a tax liability for another
period otherwise eligible for amnesty shall not be allowed without
the filing of an amnesty application under this part.
7074. (a) Except for taxpayers who have entered into an
installment payment agreement pursuant to subdivision (b) of Section
7073, there shall be added to the tax for each period for which
amnesty could have been requested:
(1) For amounts that are due and payable on the last date of the
amnesty period, an amount equal to 50 percent of the accrued interest
payable under Section 6591 for the period beginning on the date in
which the tax was due and ending on the last day of the amnesty
period specified in Section 7071.
(2) An amount equal to 50 percent of the interest computed under
Section 6591 on any final amount, including final deficiencies and
self-assessed amounts, for the period beginning on the date in which
the tax was due and ending on the last day of the amnesty period
specified in Section 7071.
(b) The penalty imposed by this section is in addition to any
other penalty imposed under this part.
(c) Article 2 (commencing with Section 6481) does not apply with
respect to the assessment or collection of any penalty imposed by
subdivision (a).
(d) Notwithstanding Chapter 7 (commencing with Section 6901), a
taxpayer may not file a claim for refund for any amounts paid in
connection with the penalty imposed under this section.
7074.5. If the board finds that a person's failure to make a
timely return or payment 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 penalties provided by Sections 7073
and 7074, as added by the act adding this section, as described in
Section 6592.
7075. Any taxpayer who has an existing installment payment
agreement under Section 6832 as of the start of the amnesty program,
and who does not participate in the amnesty program, may not be
subject to the penalty imposed under Section 7074.
7075.5. The board shall issue forms and instructions and take
other actions needed to implement this article. The provisions
contained in subdivision (c) of Section 19735, to the extent feasible
and practical, shall also apply to the board.
7075.7. The board shall adequately publicize the tax penalty
amnesty program so as to maximize public awareness of the
participation in the program. The board shall coordinate to the
highest degree possible its publicity efforts and other actions taken
in implementing this article with similar programs administered by
the Franchise Tax Board.
7075.9. Subdivision (b) of Section 19736, to the extent feasible
and practical, shall also apply to the board.
