If the board is dissatisfied with the report or return filed by any person, it may compute and determine the amount to be paid upon the basis of any information available to it. One or more deficiency determinations may be made of the amount of tax due for one or for more than one month.
DeterminationsDeficiency Determinations
Section § 30201
This law allows the board to set the tax amount a person must pay if the board is not satisfied with the person's tax report or return. They can use any information they have to figure out how much is owed. The board can also determine a tax deficiency for one or several months.
tax deficiency determination board's authority on taxes unsatisfactory tax report
Section § 30202
If you owe taxes, the amount due will accumulate interest each month until you pay it. This interest rate is set based on another law, Section 6591.5, and does not include any penalties you might owe.
The amount of the determination, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date the amount of the tax, or any portion thereof, should have been reported until the date of payment.
tax interest monthly interest rate tax payment deadline
Section § 30203
This section allows the board to balance out differences in payments. If someone paid too much for a certain period, that overpayment can be used to cover any underpayments from other periods, including any interest or penalties related to those underpayments.
In making a determination the board may offset overpayments for a month or months against underpayments for another month or months and against the interest and penalties on the underpayments.
overpayments underpayments offset payments
Section § 30204
This law states that if you owe a tax deficiency because of negligence or intentionally ignoring tax regulations, an additional penalty of 10% will be added to the amount you owe.
If any part of the deficiency for which a deficiency determination is made is due to negligence or intentional disregard of this part or the rules and regulations adopted under this part, a penalty of 10 percent of the amount of the determination shall be added thereto.
tax deficiency negligence penalty intentional disregard
Section § 30205
If you owe tax money and it's determined that fraud or intentional evasion was involved, you will face an extra penalty of 25% of the amount you owe.
If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade this part or the rules and regulations adopted under this part, a penalty of 25 percent of the amount of the determination shall be added thereto.
deficiency determination fraud penalty intent to evade taxes
Section § 30206
This section outlines how the department sends a person written notice about its decisions. Notices can be delivered in three main ways: First, they can be mailed to the address listed in the department's records, with service complete when mailed. Second, they can be delivered in person, with service complete upon delivery. Third, they can be sent electronically if the person requests it or if mail is undeliverable to the physical address, with service complete when sent electronically.
The department shall give the person written notice of its determination. The notice shall be served in one of the following manners:
(a)CA Revenue & Taxation Code § 30206(a) By placing the notice in a sealed envelope, with postage paid, addressed to the person at their address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of deposit of the notice in the United States Post Office, or a mailbox, sub-post office, substation, or mail chute, or other facility regularly maintained or provided by the United States Postal Service, without extension of time for any reason.
(b)CA Revenue & Taxation Code § 30206(b) By personally delivering the notice to the person to be served. Service
made pursuant to this subdivision shall be deemed complete at the time of such delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(c)Copy CA Revenue & Taxation Code § 30206(c)
(1)Copy CA Revenue & Taxation Code § 30206(c)(1) By delivering the notice electronically via secure transmission when either of the following applies:
(A)CA Revenue & Taxation Code § 30206(c)(1)(A) The taxpayer requests the notice of determination to be sent electronically via secure transmission.
(B)CA Revenue & Taxation Code § 30206(c)(1)(B) The department has evidence that the taxpayer no longer receives mail at the address of record and has previously provided an address for electronic mail.
(2)CA Revenue & Taxation Code § 30206(c)(2) Service provided pursuant to paragraph (1) shall be deemed complete
at the time the department electronically transmits the notice via the taxpayer’s secure web portal, without extension of time for any reason.
written notice mail delivery personal delivery
Section § 30207
If you owe taxes and haven't reported it, the state can notify you of your tax deficiency within three years of when the tax was due or when you filed, whichever is later. But if you never filed a report or return, they have eight years to notify you. This time limit doesn't apply if there's fraud, intent to evade, or no report was filed at all.
Except in the case of fraud, intent to evade the tax, or failure to make a report or return, every notice of a deficiency determination shall be served within three years after the 25th day of the month following the month for which the amount should have been paid or the report or return was due, or within three years after the report or return was filed, whichever period expires later. In the case of failure to make a report or return, the notice of determination shall be served within eight years after the date the report or return was due.
tax deficiency three-year period eight-year period
Section § 30207.1
This section states that if there is a tax deficiency related to a deceased person's financial matters, the tax authorities must notify the person responsible for handling the estate, known as the fiduciary, within four months. This notice must be given after they receive a written request in the specific format the department requires.
In the case of a deficiency arising under this part during the lifetime of a decedent, a notice of deficiency determination shall be served within four months after written request therefor, in the form required by the department, by the fiduciary of the estate or trust or by any other person liable for the tax or any portion thereof.
tax deficiency decedent notice of deficiency
Section § 30208
This law section says that if a taxpayer agrees in writing to receive a notice of deficiency after the usual deadline, the authorities can send the notice at any time before the new deadline that both parties agree upon. However, this new deadline can be extended further if both sides agree in writing before the current deadline ends.
If before the expiration of the time prescribed in Section 30207 for serving a notice of deficiency determination the taxpayer has consented in writing to the service of the notice after such time, the notice may be served at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
notice of deficiency determination taxpayer consent written agreement
