The board shall enforce the provisions of this part and may prescribe, adopt, and enforce rules and regulations relating to the application, administration and enforcement of this part. The board may prescribe the extent to which any ruling or regulation shall be applied without retroactive effect.
Timber Yield TaxAdministration
Section § 38701
This section empowers the board to enforce the rules and regulations related to this part of the law. It allows the board to establish, adopt, and implement rules to manage and enforce the provisions. The board can also decide whether these rules apply only moving forward and not backward in time.
enforcement authority regulation implementation rule application
Section § 38702
This law section allows the board to hire various professionals like accountants and auditors to help manage their responsibilities effectively. They can also appoint representatives to hold hearings, set rules, or take on other tasks required by this part or other state laws.
The board may employ accountants, auditors, appraisers, investigators, assistants, and clerks necessary for the efficient administration of this part and may designate representatives to conduct hearings, prescribe regulations, or perform any other duties imposed by this part or other laws of this state upon the board.
board authority employ professionals accountants
Section § 38703
Timber owners in California are required to maintain detailed records, including receipts and invoices, in a format specified by the board's rules and regulations.
Every timber owner shall keep such records, receipts, invoices, and other pertinent papers in such form as the board may require by rules or regulations.
timber owner record keeping receipts
Section § 38704
This law allows the board, or anyone authorized by it, to examine the financial and business records of timber owners or operators. They do this to check if what's reported is accurate, or to figure out how much should be paid if no information is submitted.
The board or any person authorized in writing by it may examine the books, papers, records, and timber of any timber owner or timber operator as defined in Section 4526.5 of the Public Resources Code and may investigate the character of the business of the person in order to verify the accuracy of any return made, or, if no return is made by the person, to ascertain and determine the amount required to be paid.
timber owners timber operators verify accuracy
Section § 38705
This law makes it illegal for anyone involved with administrative duties related to certain tax matters to disclose any information about the business activities or financial details of timber owners or other individuals required to report to the board. This includes keeping details like income or expenses confidential. However, the Governor can allow certain state and federal officers, or others specified, to access these records under specific conditions. Any information shared due to such permission cannot be made public unless explicitly allowed by the Governor's order.
Except as provided in Sections 38402 and 38706, it is unlawful for the board or any person having an administrative duty under this part to make known in any manner whatever the business affairs, operations, or any other information pertaining to any timber owner or any other person required to report to the board or pay a tax pursuant to this part, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any return, or to permit any return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person. However, the Governor may, by general or special order,
authorize examination by other state officers, by tax officers of another state, by the federal government, if a reciprocal arrangement exists, or by any other person of the records maintained by the board under this part. The information so obtained pursuant to the order of the Governor shall not be made public except to the extent and in the manner that the order may authorize that it be made public.
timber owner confidentiality tax report privacy administrative duty
Section § 38706
This law allows county assessors in areas with timber to examine relevant records maintained by a state board to assist with property evaluations. However, it strictly prohibits sharing any confidential business information learned from these records, like income or transactions of timber owners, with anyone else. If an assessor improperly discloses such information, they face a penalty of $1,000, which is to be recovered through legal action directed by the board.
Upon written request of the assessor of any county containing timber, the board shall permit the assessor, or any duly authorized deputy or employee of such assessor, to examine any records pertaining to the county of such assessor which are maintained by the board under this part. It is unlawful for the assessor or any other person examining records pursuant to this section to make known in any manner whatever the business affairs, operations or any other information pertaining to any timber owner or any other person required to report to the board or pay a tax pursuant to this part, or the amount or source of income, profits, loans, expenditures, or any particular
thereof, set forth or disclosed in any return, except that any appraisal data, including “market data” as defined in Section 408, may be disclosed to any other assessor. Any assessor who unlawfully discloses information of any timber owner or any other person required to report to the board or pay a tax pursuant to this part shall forfeit one thousand dollars ($1,000) to the county, to be recovered on his official bond in an action brought in the name of the people by the Attorney General, when directed to do so by the board.
county assessor records access timber records examination confidentiality of business information
Section § 38707
This law states that anyone who prepares tax returns for others, either as a business or for payment, must not misuse or wrongly share the information provided to them for tax preparation. If they knowingly or recklessly reveal or use this sensitive information for reasons other than preparing the tax return, they can be convicted of a misdemeanor. This can result in a fine up to $1,000, jail time of up to one year, or both, along with prosecution costs. However, if the taxpayer consents, or if a legal order demands it, the preparer can disclose the information legally.
(a)CA Revenue & Taxation Code § 38707(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 5 of this part, 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)CA Revenue & Taxation Code § 38707(a)(1) Discloses any information furnished to him or her for, or in connection with, the preparation of the return.
(2)CA Revenue & Taxation Code § 38707(a)(2) Uses that information for any purpose other than to prepare, or assist in preparing, the return.
(b)CA Revenue & Taxation Code § 38707(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.
tax return preparer misuse of taxpayer information tax preparer penalties
Section § 38708
If you've had a hearing with the board and they were unreasonable, you can get reimbursed for your reasonable fees and expenses. To qualify, you must file your claim within a year after the board's final decision. The board decides if their staff was unreasonable and sets how much you'll be reimbursed. Fees are only reimbursed for expenses related to unreasonable actions and after certain points in the hearing process.
The board also needs to justify if their staff's position was reasonable or not. Any proposed award must be made public for at least 10 days before it takes effect. This rule applies to claims filed since January 1, 2001.
(a)CA Revenue & Taxation Code § 38708(a) Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the board if all of the following conditions are met:
(1)CA Revenue & Taxation Code § 38708(a)(1) The taxpayer files a claim for the fee and expenses with the board within one year of the date the decision of the board becomes final.
(2)CA Revenue & Taxation Code § 38708(a)(2) The board, in its sole discretion, finds that the action taken by the board staff was unreasonable.
(3)CA Revenue & Taxation Code § 38708(a)(3) The board decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount determined by the board in its sole discretion.
(b)CA Revenue & Taxation Code § 38708(b) To determine whether the board staff has been unreasonable, the board shall consider whether the board staff has established that its position was substantially justified.
(c)CA Revenue & Taxation Code § 38708(c) The amount of reimbursed fees and expenses shall be limited to the following:
(1)CA Revenue & Taxation Code § 38708(c)(1) Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or denial of a claim for refund.
(2)CA Revenue & Taxation Code § 38708(c)(2) If the board finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues,
the amount of reimbursed fees and expenses shall be limited to those which relate to the issues where the staff was unreasonable.
(d)CA Revenue & Taxation Code § 38708(d) Any proposed award by the board pursuant to this section shall be available as a public record for at least 10 days prior to the effective date of the award.
(e)CA Revenue & Taxation Code § 38708(e) This section shall be operative for claims filed on or after January 1, 2001.
taxpayer reimbursement hearing fees board decision
Section § 38800
This law allows certain tax debts to be reduced through compromises. If the tax reduction is $7,500 or less, the executive director and chief counsel can approve it. For amounts above that, the board can approve it based on recommendations or delegates authority for debts under $10,000. To be eligible, the taxpayer must not have recently harvested timber or been convicted of tax evasion during that period. The taxpayer must also prove they can't reasonably pay more than the compromise amount. When fraud or evasion is involved, the minimum offer must cover unpaid taxes and penalties, unless someone else was responsible for the fraud.
A public record is kept for compromises over $500, excluding private business details. If any deceit or noncompliance is discovered, the compromise can be rescinded. Fraud in making these offers could lead to serious penalties, including fines and imprisonment. Affected parties include the taxpayer and related entities or individuals.
(a)Copy CA Revenue & Taxation Code § 38800(a)
(1)Copy CA Revenue & Taxation Code § 38800(a)(1) Beginning on January 1, 2007, the executive director and chief counsel of the board, or their delegates, may compromise any final tax liability where the reduction of tax is seven thousand five hundred dollars ($7,500) or less.
(2)CA Revenue & Taxation Code § 38800(a)(2) Except as provided in paragraph (3), the board,
upon recommendation by its executive director and chief counsel, jointly, may compromise a final tax liability involving a reduction in tax in excess of seven thousand five hundred dollars ($7,500). Any recommendation for approval of an offer in compromise that is not either approved or disapproved within 45 days of the submission of the recommendation shall be deemed approved.
(3)CA Revenue & Taxation Code § 38800(a)(3) The board, itself, may by resolution delegate to the executive director and the chief counsel, jointly, the authority to compromise a final tax liability in which the reduction of tax is in excess of seven thousand five hundred dollars ($7,500), but less than ten thousand dollars ($10,000).
(b)CA Revenue & Taxation Code § 38800(b) For purposes of this section, “a final tax liability” means any final tax liability arising under Part 18.5 (commencing with Section 38101), or related interest, additions to tax, penalties, or other amounts
assessed under this part.
(c)CA Revenue & Taxation Code § 38800(c) Offers in compromise shall be considered only for liabilities that were generated from persons who no longer harvest timber, or property owners that no longer harvest their property, except where the taxpayer making the offer has their primary residence located on the property that generated the timber tax liability.
(d)CA Revenue & Taxation Code § 38800(d) Offers in compromise shall not be considered where the taxpayer has been convicted of felony tax evasion under this part during the liability period.
(e)CA Revenue & Taxation Code § 38800(e) For amounts to be compromised under this section, the following conditions shall exist:
(1)CA Revenue & Taxation Code § 38800(e)(1) The taxpayer shall establish that:
(A)CA Revenue & Taxation Code § 38800(e)(1)(A) The amount offered in payment is the most that can be
expected to be paid or collected from the taxpayer’s present assets or income.
(B)CA Revenue & Taxation Code § 38800(e)(1)(B) The taxpayer does not have reasonable prospects of acquiring increased income or assets that would enable the taxpayer to satisfy a greater amount of the liability than the amount offered, within a reasonable period of time.
(2)CA Revenue & Taxation Code § 38800(e)(2) The board shall have determined that acceptance of the compromise is in the best interest of the state.
(f)CA Revenue & Taxation Code § 38800(f) A determination by the board that it would not be in the best interest of the state to accept an offer in compromise in satisfaction of a final tax liability shall not be subject to administrative appeal or judicial review.
(g)Copy CA Revenue & Taxation Code § 38800(g)
(1)Copy CA Revenue & Taxation Code § 38800(g)(1) Offers for liabilities with a fraud or evasion penalty shall require a minimum offer of
the unpaid tax and fraud or evasion penalty.
(2)CA Revenue & Taxation Code § 38800(g)(2) The minimum offer may be waived if it can be shown that the taxpayer making the offer was not the person responsible for perpetrating the fraud or evasion. This authorization to waive only applies to partnership accounts where the intent to commit fraud or evasion can be clearly attributed to a partner of the taxpayer.
(h)CA Revenue & Taxation Code § 38800(h) When an offer in compromise is either accepted or rejected, or the terms and conditions of a compromise agreement are fulfilled, the board shall notify the taxpayer in writing. In the event an offer is rejected, the amount posted will either be applied to the liability or refunded, at the discretion of the taxpayer.
(i)CA Revenue & Taxation Code § 38800(i) When more than one taxpayer is liable for the debt, such as with spouses or partnerships or other business combinations, including,
but not limited to, taxpayers who are liable through dual determination or successor’s liability, the acceptance of an offer in compromise from one liable taxpayer shall reduce the amount of the liability of the other taxpayers by the amount of the accepted offer.
(j)CA Revenue & Taxation Code § 38800(j) Whenever a compromise of tax or penalties or total tax and penalties in excess of five hundred dollars ($500) is approved, there shall be placed on file for at least one year in the office of the executive director of the board a public record with respect to that compromise. The public record shall include all of the following information:
(1)CA Revenue & Taxation Code § 38800(j)(1) The name of the taxpayer.
(2)CA Revenue & Taxation Code § 38800(j)(2) The amount of unpaid tax and related penalties, additions to tax, interest, or other amounts involved.
(3)CA Revenue & Taxation Code § 38800(j)(3) The amount
offered.
(4)CA Revenue & Taxation Code § 38800(j)(4) A summary of the reason why the compromise is in the best interest of the state.
The public record shall not include any information that relates to any trade secrets, patent, process, style of work, apparatus, business secret, or organizational structure, that if disclosed, would adversely affect the taxpayer or violate the confidentiality provisions of Section 38705. No list shall be prepared and no releases distributed by the board in connection with these statements.
(k)CA Revenue & Taxation Code § 38800(k) Any compromise made under this section may be rescinded, all compromised liabilities may be reestablished, without regard to any statute of limitations that otherwise may be applicable, and no portion of the amount offered in compromise refunded, if either of the following occurs:
(1)CA Revenue & Taxation Code § 38800(k)(1) The
board determines that any person did any of the following acts regarding the making of the offer:
(A)CA Revenue & Taxation Code § 38800(k)(1)(A) Concealed from the board any property belonging to the estate of any taxpayer or other person liable for the tax.
(B)CA Revenue & Taxation Code § 38800(k)(1)(B) Received, withheld, destroyed, mutilated, or falsified any book, document, or record or made any false statement, relating to the estate or financial condition of the taxpayer or other person liable for the tax.
(2)CA Revenue & Taxation Code § 38800(k)(2) The taxpayer fails to comply with any of the terms and conditions relative to the offer.
(l)CA Revenue & Taxation Code § 38800(l) Any person who, in connection with any offer or compromise under this section, or offer of that compromise to enter into that agreement, willfully does either of the following shall be guilty of a felony and, upon conviction, shall be
fined not more than fifty thousand dollars ($50,000) or imprisoned pursuant to subdivision (h) of Section 1170 of the Penal Code, or both, together with the costs of investigation and prosecution:
(1)CA Revenue & Taxation Code § 38800(l)(1) Conceals from any officer or employee of this state any property belonging to the estate of a taxpayer or other person liable in respect of the tax.
(2)CA Revenue & Taxation Code § 38800(l)(2) Receives, withholds, destroys, mutilates, or falsifies any book, document, or record, or makes any false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax.
(m)CA Revenue & Taxation Code § 38800(m) For purposes of this section, “person” means the taxpayer, any member of the taxpayer’s family, any corporation, agent, fiduciary, or representative of, or any other individual or entity acting on behalf of, the taxpayer, or any other corporation
or entity owned or controlled by the taxpayer, directly or indirectly, or that owns or controls the taxpayer, directly or indirectly.
tax liability compromise executive director chief counsel
