reglab/statecodes huggingface dataset:
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 6 - Interest › Section 19110.

19110. (a) When the correction of an erroneous inclusion or deduction of an item or items in the computation of income of a trust, estate, parent, or spouse for any year results in an overpayment for that year by the trust, estate, parent, or spouse, and also results in a deficiency for the same year for a grantor of the trust or beneficiary of the estate or trust, or child of the parent, or spouse of the child, or the spouse of the spouse, the overpayment, if the period within which credit for the overpayment may be allowed has not expired, shall be credited on the deficiency, if the period within which the deficiency may be proposed has not expired, and the balance, if any, shall be credited or refunded. No interest shall be assessed on the portion of the deficiency as is extinguished by the credit for the period of time subsequent to the date the overpayment was made.
(b) When the correction of an erroneous inclusion or deduction of an item or items in the computation of income of a grantor of a trust, beneficiary of an estate or trust, a child, or spouse of the child, or a spouse for any year results in an overpayment for that year by the grantor, beneficiary, child, or spouse, and also results in a deficiency for the same year for the grantor’s or beneficiary’s trust, the beneficiary’s estate, the child’s parent, or spouse of the child, or the beneficiary’s spouse, the overpayment, if the period within which credit for the overpayment may be allowed has not expired, shall be credited on the deficiency, if the period within which the deficiency may be proposed has not expired, and the balance, if any, shall be credited or refunded. No interest shall be assessed on the portion of the deficiency as is extinguished by the credit for the period of time subsequent to the date the overpayment was made.
(c) Subdivisions (a) and (b) are not intended, nor shall they be construed as a limitation on the Franchise Tax Board’s right to offset or recoup barred assessments against overpayments.
(Amended by Stats. 2016, Ch. 50, Sec. 110. (SB 1005) Effective January 1, 2017.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 6 - Interest › Section 19112.

19112. Interest may be waived for any period for which the Franchise Tax Board determines that an individual or fiduciary demonstrates inability to pay that interest solely because of extreme financial hardship caused by significant disability or other catastrophic circumstance. Any waiver under this section shall be withdrawn retroactively if made because of fraud, malfeasance, misrepresentation, or omission of any material fact.
(Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 6 - Interest › Section 19113.

19113. If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under this article on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowable with respect to the overpayment.
(Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 6 - Interest › Section 19114.

19114. Interest prescribed under this article on any tax may be assessed and collected at any time during the period within which the tax to which the interest relates may be collected.
(Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 6 - Interest › Section 19117.

19117. (a) The Franchise Tax Board shall include with each notice to an individual taxpayer which includes an amount of interest required to be paid by the taxpayer under this part information with respect to the section under which interest is imposed and a description of how the interest is computed. Upon the request of the taxpayer, the Franchise Tax Board shall also provide a computation of the interest.
(b) This section shall apply to any notice issued after December 31, 2001.
(Added by Stats. 1999, Ch. 931, Sec. 19. Effective October 10, 1999.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 6 - Interest › Section 19120.

19120. Any portion of any amount that has been erroneously refunded and that is recoverable by suit pursuant to Section 19411 shall bear interest at the adjusted annual rate established pursuant to Section 19521 from the date of the payment of the refund. Abatement of interest under this section is governed by subdivision (c) of Section 19104.
(Amended by Stats. 2003, Ch. 455, Sec. 3. Effective January 1, 2004.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19131.5.

19131.5. (a) Section 6164 of the Internal Revenue Code, relating to extension of time for payment of taxes by corporations expecting carrybacks, shall apply, except as otherwise provided.
(b) (1) Section 6164 of the Internal Revenue Code is modified by substituting the phrase “Secretary or the Franchise Tax Board” for the word “Secretary” in each place it appears.
(2) Section 6164(a) of the Internal Revenue Code is modified by substituting the phrase “Part 11 (commencing with Section 23001)” in lieu of the phrase “subtitle A.”
(3) Section 6164(b) of the Internal Revenue Code, relating to contents of statement, is modified by substituting the phrase “Section 24416” in lieu of the phrase “Section 172(b).”
(4) Section 6164(d)(2) of the Internal Revenue Code shall not apply.
(5) Section 6164(h) of the Internal Revenue Code, relating to jeopardy, is modified as follows:
(A) By substituting the phrase “he or the Franchise Tax Board” for the word “he” in each place it appears.
(B) By substituting the phrase “him or the Franchise Tax Board” for the word “him” in each place it appears.
(6) Section 6164(i) of the Internal Revenue Code, relating to consolidated returns, is modified by substituting the phrase “combined report” in lieu of the phrase “consolidated return” in each place it appears.
(c) This section shall not apply to a carryback of a net operating loss attributable to taxable years beginning on or after January 1, 2019.
(Amended by Stats. 2019, Ch. 39, Sec. 19. (AB 91) Effective July 1, 2019.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19132.5.

19132.5. (a) (1) An individual taxpayer may elect to request a one-time abatement of a timeliness penalty under this section for a timeliness penalty that has been considered and rejected for abatement pursuant to the provisions of the section under which the penalty is imposed.
(2) An individual taxpayer may, in lieu of requesting consideration for abatement pursuant to the section under which the timeliness penalty is imposed, instead request a one-time abatement of a timeliness penalty under this section.
(b) If a taxpayer described in subdivision (a) requests, either orally or in writing, the abatement of a timeliness penalty pursuant to this section, the timeliness penalty shall be abated if all of the following apply:
(1) The taxpayer has not previously been required to file a California personal income tax return under Part 10 (commencing with Section 17001) or has not previously been granted abatement under this section.
(2) The taxpayer has filed all returns required under Part 10 (commencing with Section 17001) as of the date of the taxpayer’s request for abatement under this section.
(3) Excluding the timeliness penalty that is the subject of the abatement request under this section, the taxpayer has paid in full, or arranged to pay pursuant to an installment agreement, any tax, penalties, fees, and interest due for the required returns pursuant to paragraph (2) and the taxpayer is current with all installment payments.
(c) For purposes of this section, “timeliness penalty” means a penalty imposed under Section 19131 or 19132 for one taxable year with respect to a return filed by an individual for that taxable year.
(d) For purposes of this section:
(1) A timeliness penalty imposed and subsequently abated due to a determination of reasonable cause, or reasonable cause and not willful neglect, with respect to the taxpayer or the taxpayer’s spouse shall be considered to have not been imposed for purposes of determining eligibility for timeliness penalty abatement under this section.
(2) A timeliness penalty shall be considered imposed on the original due date of the return for the taxable year for which the penalty is imposed.
(e) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.
(f) This section shall apply to requests for abatement made for taxable years beginning on or after January 1, 2022.
(Repealed and added by Stats. 2022, Ch. 55, Sec. 10. (AB 194) Effective June 30, 2022.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19133.

19133. If any taxpayer fails or refuses to furnish any information requested in writing by the Franchise Tax Board or fails or refuses to make and file a return required by this part upon notice and demand by the Franchise Tax Board, then, unless the failure is due to reasonable cause and not willful neglect, the Franchise Tax Board may add a penalty of 25 percent of the amount of tax determined pursuant to Section 19087 or of any deficiency tax assessed by the Franchise Tax Board concerning the assessment of which the information or return was required.
(Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19134.

19134. (a) The provisions of Section 6657 of the Internal Revenue Code, relating to bad checks, shall apply except as otherwise provided.
(b) Section 6657 of the Internal Revenue Code, relating to bad checks, is modified to apply to payments made by credit card remittance or electronic funds transfer (as provided by Section 19011) in addition to payments made by check or money order.
(c) For payments received prior to January 1, 1993, this section shall be applied only to payments pertaining to taxable years beginning on or after January 1, 1990.
(d) For payments received on or after January 1, 1993, this section shall be applied to all payments, without regard to taxable year.
(e) The amendments made to Section 6657 of the Internal Revenue Code by Public Law 110-28 that are incorporated by reference under this section shall apply to all payments received after the effective date of the act adding this subdivision, without regard to taxable year.
(Amended by Stats. 2010, Ch. 14, Sec. 45. (SB 401) Effective January 1, 2011.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19135.

19135. (a) (1) The Franchise Tax Board shall impose a penalty of two thousand dollars ($2,000) per taxable year whenever an entity described in paragraph (2) is doing business in this state, within the meaning of Section 23101, and fails to make and file a return as required by this part, within 60 days after the Franchise Tax Board sends the taxpayer a notice and demand to file the required tax return, unless the failure is due to reasonable cause and not willful neglect.
(2) (A) A foreign corporation or a foreign limited liability company that fails to qualify to do business in this state or whose powers, rights, and privileges have been forfeited.
(B) A domestic corporation or a domestic limited liability company that has been suspended.
(b) The penalty shall be in addition to any other penalty that may be due under this part.
(Repealed and added by Stats. 2012, Ch. 313, Sec. 3. (AB 318) Effective January 1, 2013.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19136.1.

19136.1. (a) Section 6654(d)(1)(A) of the Internal Revenue Code is modified to provide that in lieu of the required installments specified in that section, the amount of required installments shall instead be as follows:
(1) For each taxable year beginning on or after January 1, 2009, and before January 1, 2010, the amount of required installments shall be:
(A) For the 1st and 2nd required installments, 30 percent of the required annual payment.
(B) For the 3rd and 4th required installments, 20 percent of the required annual payment.
(2) For each taxable year beginning on or after January 1, 2010, the amount of required installments shall be:
(A) For the 1st required installment, 30 percent of the required annual payment.
(B) For the 2nd required installment, 40 percent of the required annual payment.
(C) The amount of the 3rd required installment shall be zero.
(D) For the 4th required installment, 30 percent of the required annual payment.
(b) Section 6654(d)(2)(C)(ii) of the Internal Revenue Code, relating to applicable percentage, is modified as follows:
(1) For each taxable year beginning on or after January 1, 2009, and before January 1, 2010, by substituting “27” for “22.5,” “54” for “45,” and “72” for “67.5.”
(2) For each taxable year beginning on or after January 1, 2010, by substituting “27” for “22.5,” “63” for “45,” and “63” for “67.5.”
(Amended by Stats. 2009, 4th Ex. Sess., Ch. 15, Sec. 4. (AB 17 4x) Effective October 23, 2009.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19136.2.

19136.2. For taxable years beginning on or after January 1, 1998, and before January 1, 1999, Section 6654(d)(1)(C)(i) of the Internal Revenue Code, relating to limitation on use of preceding year’s tax, shall not apply.
(Added by Stats. 1997, Ch. 611, Sec. 56.5. Effective October 3, 1997.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19136.3.

19136.3. (a) Section 6654(d)(1)(B) of the Internal Revenue Code is modified to additionally provide that clause (ii) shall not apply if the adjusted gross income shown on the return of the individual for the taxable year is equal to or greater than $1 million ($500,000 in the case of a married individual filing a separate return).
(b) This section shall apply to taxable years beginning on or after January 1, 2009.
(Added by Stats. 2008, 1st Ex. Sess., Ch. 1, Sec. 3. Effective December 31, 2008.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19136.5.

19136.5. No addition to tax shall be made under Section 19136 for any installment of tax due on or after January 1, 1993, to the extent that the underpayment is attributable solely to changes made to the laws of other states applicable to the determination of credits that make Section 18001 inapplicable, by its terms, to a resident of this state.
(Added by Stats. 1993, Ch. 877, Sec. 28.1. Effective October 6, 1993. Operative January 1, 1994, by Sec. 102 of Ch. 877.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19136.7.

19136.7. (a) No additions to tax shall be made under Section 19136 or 19142 with respect to any underpayment of an installment for a taxable year, to the extent that the underpayment was created or increased as the direct result of an erroneous levy, erroneous processing action, or erroneous collection action by the Franchise Tax Board.
(b) The Franchise Tax Board shall implement this section in a reasonable manner.
(Added by Stats. 2005, Ch. 349, Sec. 3. Effective January 1, 2006.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19136.12.

19136.12. (a) No addition to tax shall be made pursuant to Section 19136 for any period before the date prescribed under Section 18566 for the filing of the return for the 2005 taxable year, with respect to any underpayment of an installment for the 2005 taxable year, to the extent that the underpayment was created or increased by any provision of the act adding this section.
(b) No addition to tax shall be made pursuant to Section 18601 for the filing of the return for the 2005 taxable year, with respect to any underpayment of an installment for the 2005 taxable year, to the extent that the underpayment was created or increased by any provision of the act adding this section.
(c) The Franchise Tax Board shall implement this section in a reasonable manner.
(Added by Stats. 2005, Ch. 691, Sec. 47. Effective October 7, 2005.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19136.13.

19136.13. No addition to tax shall be made pursuant to Section 19136 for any period before the date prescribed under Section 18566 for the filing of the return for the 2007 taxable year, with respect to any underpayment of an installment for the 2007 taxable year, to the extent that the underpayment was created or increased by any provision of the act adding this section or Chapter 802 of the Statutes of 2006.
(Added by Stats. 2007, Ch. 426, Sec. 3. Effective October 10, 2007.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19141.

19141. Upon certification by the Secretary of State pursuant to subdivision (a) of Section 2204 or subdivision (a) of Section 17713.09 of the Corporations Code, the Franchise Tax Board shall assess a penalty of two hundred fifty dollars ($250). Upon certification by the Secretary of State pursuant to subdivision (a) of Section 6810 or subdivision (a) of Section 8810 of the Corporations Code, the Franchise Tax Board shall assess a penalty of fifty dollars ($50). Any penalty assessed under this section shall be a final assessment due and payable at the time of assessment but no interest shall accrue thereon. The assessment shall be collected as other taxes, interest, and penalties are collected by the Franchise Tax Board unless the Secretary of State decertifies the name of the corporation as provided in subdivision (e) or (f) of Section 2204, subdivision (e) of Section 6810, subdivision (e) of Section 8810, or subdivision (e) of Section 17713.08, of the Corporations Code.
(Amended by Stats. 2012, Ch. 419, Sec. 28. (SB 323) Effective January 1, 2013. Operative January 1, 2014, by Sec. 32 of Ch. 419.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19141.2.

19141.2. (a) Section 6038 of the Internal Revenue Code, relating to information with respect to certain foreign corporations, shall apply, except as otherwise provided.
(b) Section 6038(a) is modified as follows:
(1) The information required to be filed with the Franchise Tax Board under this section shall be a copy of the information required to be filed with the Internal Revenue Service.
(2) The term “United States person,” as defined in Section 7701(a)(30) of the Internal Revenue Code, shall be limited to a domestic corporation, as defined in Section 7701(a) of the Internal Revenue Code, or a bank, as defined in Section 23039, that is subject to the tax imposed under Chapter 2 (commencing with Section 23101), Chapter 2.5 (commencing with Section 23400), or Chapter 3 (commencing with Section 23501), of Part 11.
(c) (1) Unless it is shown that the failure is due to reasonable cause and not due to willful neglect, a penalty shall be imposed under this part for failure to furnish information and that penalty shall be determined in accordance with Section 6038 of the Internal Revenue Code, except as otherwise provided.
(A) Section 6038(b) of the Internal Revenue Code shall be modified by substituting “$1,000” for “$10,000” in each place it appears.
(B) Section 6038(b)(2) of the Internal Revenue Code shall be modified by substituting “$24,000” for “$50,000.”
(2) No penalty shall be imposed under paragraph (1) if the copy of the information required to be filed with the Internal Revenue Service was not attached to the taxpayer’s return as originally filed but the taxpayer does both of the following:
(A) Furnishes the copy of the information required to be filed with the Internal Revenue Service either upon its own initiative or within 90 days of notification by the Franchise Tax Board of the requirements of this section.
(B) Agrees to attach a copy of the information required to be filed with the Internal Revenue Service to the taxpayer’s original return filed for subsequent taxable years.
(3) All or any portion of the penalty imposed under paragraph (1) may be waived by the Franchise Tax Board when the taxpayer has entered into a voluntary disclosure agreement under Article 8 (commencing with Section 19191) of Chapter 4.
(4) The penalty imposed under this subdivision shall not apply to returns required to be filed for taxable years beginning before January 1, 1998.
(d) This section shall apply to returns required to be filed for taxable years beginning on or after January 1, 1997.
(Amended by Stats. 2000, Ch. 862, Sec. 21. Effective January 1, 2001.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19142.

19142. (a) Except as provided in Sections 19147 and 19148 and subdivision (b), in the case of any underpayment of tax imposed under Part 11 (commencing with Section 23001) there shall be added to the tax for the taxable year an amount determined at the rate established under Section 19521 on the amount of the underpayment for the period of the underpayment.
(b) (1) No addition to tax shall be imposed under this section to the extent that the underpayment was created or increased by any provision of law that is chaptered during and operative for the taxable year of the underpayment.
(2) Notwithstanding Section 18415, this subdivision applies to penalties imposed on and after January 1, 2005.
(Amended by Stats. 2005, Ch. 242, Sec. 8. Effective September 22, 2005.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19144.

19144. For the purposes of Section 19142 the amount of the underpayment shall be the excess of—
(a) (1) The amount of the installment which would be required to be paid if the estimated tax were equal to the applicable percentage of the tax shown on the return for the taxable year, or (2) in the case of the tax imposed by Article 3 (commencing with Section 23181) of Chapter 2 of Part 11 an amount equal to the applicable percentage of the lesser of the tax computed at the rate provided by Section 19024 (but otherwise on the basis of the facts shown on the return and the law applicable to the taxable year), or the tax shown on the return for the taxable year as prescribed by Section 19021, or (3) if no return was filed, the applicable percentage of the tax for that year, over
(b) The amount, if any, of the installment paid on or before the last date prescribed for payment.
(c) For purposes of this section, the “applicable percentage” shall be as follows:
(1) For taxable years beginning before January 1, 1998, 95 percent.
(2) For taxable years beginning on or after January 1, 1998, 100 percent.
(Amended by Stats. 2000, Ch. 862, Sec. 24. Effective January 1, 2001.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19145.

19145. For purposes of Section 19142, the period of the underpayment shall run from the date the installment was required to be made to whichever of the following dates is the earlier:
(a) The 15th day of the third month following the close of the taxable year, except in the case of an organization described in Section 23731 subject to the tax imposed under Section 23731, in which case “fifth” shall be substituted for “third.”
(b) With respect to any portion of the underpayment, the date on which that portion is paid. For purposes of this subdivision, a payment of estimated tax on any installment date shall be considered a payment of any previous underpayment only to the extent the payment exceeds the amount of the installment determined under subdivision (a) of Section 19144 for the installment date.
(Amended by Stats. 2000, Ch. 862, Sec. 25. Effective January 1, 2001.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19148.

19148. (a) Notwithstanding Sections 19142 to 19147, inclusive, the addition to the tax with respect to any underpayment of any installment shall not be imposed if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment of that installment equals or exceeds the applicable percentage specified in Section 19144 of the amount determined under subdivision (b).
(b) The amount determined under this subdivision for any installment shall be determined in the following manner:
(1) Take the net income for all months during the taxable year preceding the filing month.
(2) Divide that amount by the base period percentage for all months during the taxable year preceding the filing month.
(3) Determine the tax on the amount determined under paragraph (2).
(4) Multiply the tax computed under paragraph (3) by the base period percentage for the filing months and all months during the taxable year preceding the filing month.
(c) For purposes of this subdivision:
(1) The base period percentage for any period of months shall be the average percent which the net income for the corresponding months in each of the three preceding taxable years bears to the net income for the three preceding taxable years.
(2) “Filing month” means the month in which the installment is required to be paid.
(3) This subdivision shall only apply if the base period percentage for any six consecutive months of the taxable year equals or exceeds 70 percent.
(4) The Franchise Tax Board may by regulations provide for the determination of the base period percentage in the case of reorganizations, new corporations, and other similar circumstances.
(Amended by Stats. 2000, Ch. 862, Sec. 27. Effective January 1, 2001.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19149.

19149. (a) Notwithstanding any other provision of Sections 19142 to 19151, inclusive, if the amount of estimated tax due and payable under Section 19025 is only the minimum franchise tax imposed by Section 23153 and, if applicable, the tax of a wholly owned subsidiary under Section 23800.5, then the addition to the tax with respect to any underpayment of any installment imposed by Section 19142 shall be calculated only on the basis of the amount of the minimum franchise tax and the amount of the tax of each wholly owned subsidiary.
(b) This section shall not apply to a large corporation as defined in subdivision (b) of Section 19147.
(Amended by Stats. 1998, Ch. 7, Sec. 22. Effective March 14, 1998.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19150.

19150. The application of Sections 19142 to 19151, inclusive, to taxable years of less than 12 months shall be in accordance with regulations prescribed by the Franchise Tax Board.
(Amended by Stats. 2000, Ch. 862, Sec. 28. Effective January 1, 2001.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19151.

19151. Notwithstanding Sections 19142 to 19150, inclusive, the addition to the tax with respect to underpayment of any installment shall not be imposed on an exempt organization described in Section 23731 whose exemption is retroactively revoked unless the organization described in Section 23731 has notice that the estimated tax should have been paid. The denial of the organization’s exemption application or the revocation of its exemption by the Internal Revenue Service normally satisfies the notice requirement.
(Amended by Stats. 1999, Ch. 987, Sec. 75.3. Effective October 10, 1999.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19161.

19161. (a) An addition to tax shall not be made under Section 19132, 19136, or 19142 for failure to make timely payment of tax with respect to a period during which a case is pending under Title 11 of the United States Code in either of the following situations:
(1) If that tax was incurred by the estate and the failure occurred pursuant to an order of the court finding probable insufficiency of funds of the estate to pay administrative expenses.
(2) If:
(A) That tax was incurred by the debtor before the earlier of the order for relief or (in the involuntary case) the appointment of a trustee, and
(B) (i) The petition was filed before the due date prescribed by law (including extensions) for filing a return of that tax, or
(ii) The date for making the addition to the tax occurs on or after the day on which the petition was filed.
(b) Subdivision (a) does not apply to any liability for an addition to the tax which arises from the failure to pay or deposit a tax withheld or collected from others and required to be paid to the State of California.
(Amended by Stats. 2016, Ch. 86, Sec. 285. (SB 1171) Effective January 1, 2017.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19164.1.

19164.1. (a) Any understatement determined pursuant to subdivision (a) of Section 19164 (relating to the accuracy-related penalty) may not include amounts that are attributable to the credit allowed under Section 17052.2 (relating to the teacher retention tax credit).
(b) This section applies only to tax credits claimed under Section 17052.2 for taxable years beginning on or after January 1, 2000, and before January 1, 2001.
(Added by Stats. 2001, Ch. 410, Sec. 1. Effective January 1, 2002.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19164.5.

19164.5. (a) A reportable transaction accuracy-related penalty shall be imposed under this part and shall be determined in accordance with Section 6662A of the Internal Revenue Code, relating to the imposition of an accuracy-related penalty on understatements with respect to reportable transactions, except as otherwise provided.
(b) (1) The reportable transaction understatement, as determined under Section 6662A(b) of the Internal Revenue Code, is modified to not include amounts to which the penalty of Section 19774 is imposed.
(2) Section 6662A(b)(1)(A)(ii) of the Internal Revenue Code is modified to substitute the phrase “Sections 17041, 23151, 23181, or 23501” for “section 1 (section 11 in the case of a taxpayer which is a corporation).”
(3) Section 6662A(b)(1)(B) of the Internal Revenue Code is modified to substitute the phrase “Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001)” for “subtitle A.”
(4) Section 6662A(b)(2)(B) of the Internal Revenue Code is modified to substitute the phrase “income or franchise tax” for “Federal income tax.”
(5) Section 6662A(e)(1) of the Internal Revenue Code is modified to additionally provide that the amount of the understatement is increased by noneconomic transaction understatements, as defined in Section 19774.
(c) Section 6662A(e)(2) of the Internal Revenue Code is modified to additionally provide that Section 6662A of the Internal Revenue Code does not apply to amounts to which a penalty is imposed under Section 19774.
(d) The provisions of subdivision (f) of Section 19772, relating to the rescission of the penalty by the Chief Counsel, shall apply to any penalty imposed by this section.
(Added by Stats. 2005, Ch. 691, Sec. 47.2. Effective October 7, 2005.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19168.

19168. The following rules shall apply to any penalty imposed under Section 19166 or 19167:
(a) The penalties shall be in addition to any other penalties provided by law.
(b) Article 3 (commencing with Section 19031) of this chapter (relating to deficiency assessments) shall not be applicable.
(Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19169.

19169. (a) In addition to the criminal penalty provided by Section 19712, any tax preparer who endorses or otherwise negotiates (directly or through an agent) any warrant made in respect of the taxes imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) which is issued to a taxpayer (other than the tax preparer) shall pay a penalty of two hundred fifty dollars ($250) with respect to each warrant. The preceding sentence shall not apply with respect to the deposit by a bank (as defined by Section 581 of the Internal Revenue Code) of the full amount of the warrant in the taxpayer’s account in that bank for the benefit of the taxpayer.
(b) For purposes of subdivision (a), “tax preparer” means any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any return of tax imposed by Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) or any claim for refund of tax imposed by Part 10 or Part 11. For purposes of the preceding sentence, the preparation of a substantial portion of a return or claim for refund shall be treated as if it were the preparation of that return or claim for refund.
A person shall not be a “tax preparer” merely because the person does any of the following:
(1) Furnishes typing, reproducing, or other mechanical assistance.
(2) Prepares a return or claim for refund of the employer (or of an officer or employee of the employer) by whom that person is regularly and continuously employed.
(3) Prepares as a fiduciary a return or claim for refund for any person.
(c) This section shall not apply where the tax preparer has advanced the taxpayer an amount of money equal to or greater than the amount of the taxpayer’s refund.
(Added by Stats. 1993, Ch. 31, Sec. 26. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19170.

19170. (a) An income tax preparer that is subject to Section 18621.9 is liable for a penalty in the amount of fifty dollars ($50) for each acceptable individual income tax return prepared by that income tax preparer that is not electronically filed, unless it is shown that the failure to electronically file that acceptable individual income tax return is due to reasonable cause and not due to willful neglect.
(b) For purposes of this section, reasonable cause includes, but is not limited to, a taxpayer’s election not to electronically file an acceptable individual income tax return in compliance with Section 18621.9.
(c) This section shall apply to acceptable individual income tax returns required to be filed on or after January 1, 2005.
(Repealed (by Sec. 1) and added by Stats. 2004, Ch. 267, Sec. 3. Effective August 23, 2004. Added section applicable January 1, 2005, as provided in subd. (c).)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19171.

19171. (a) A business entity required to electronically file a return pursuant to Section 18621.10 that files a return in a manner that fails to comply with Section 18621.10, shall be subject to a penalty in the amount of one hundred dollars ($100) for an initial failure and a penalty in the amount of five hundred dollars ($500) for each subsequent failure unless the failure is due to reasonable cause, and not willful neglect.
(b) If a group return is filed on behalf of eligible electing taxpayer members of a combined reporting group, the penalties described in subdivision (a) shall apply to the combined reporting group and not to a taxpayer member of the combined reporting group.
(c) This section shall apply to returns filed for taxable years beginning on or after January 1, 2017.
(Added by Stats. 2014, Ch. 478, Sec. 6. (AB 2754) Effective January 1, 2015.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19172.

19172. (a) In addition to the penalty imposed by Section 19706 (relating to willful failure to file return, supply information, or pay tax), if any partnership required to file a return under Section 18633 or 18633.5 for any taxable year does either of the following:
(1) Fails to file the return at the time prescribed therefor (determined with regard to any extension of time for filing).
(2) Files a return which fails to show the information required under Section 18633 or 18633.5, that partnership shall be liable for a penalty determined under subdivision (b) for each month (or fraction thereof) during which that failure continues (but not to exceed 12 months), unless it is shown that the failure is due to reasonable cause.
(b) For purposes of subdivision (a), the amount determined under this subdivision for any month is the product of the following:
(1) Eighteen dollars ($18), multiplied by
(2) The number of persons who were partners in the partnership during any part of the taxable year.
(c) The penalty imposed by subdivision (a) shall be assessed against the partnership.
(d) Article 3 (commencing with Section 19031) of this chapter (relating to deficiency assessments) shall not apply with respect to the assessment or collection of any penalty imposed by subdivision (a).
(e) The amendments made to this section by the act adding this subdivision shall apply to returns required to be filed after the effective date of the act adding this subdivision.
(Amended by Stats. 2010, Ch. 14, Sec. 48. (SB 401) Effective January 1, 2011.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19172.5.

19172.5. (a) In addition to the penalty imposed by Section 19706, if any “S” corporation required to file a return under Section 18601 for any taxable year fails to file the return at the time prescribed therefor (determined with regard to any extension of time for filing), or files a return that fails to show the information required under Section 18601, then that “S” corporation shall be liable for a penalty determined under subdivision (b) for each month (or fraction thereof) during which that failure continues (but not to exceed 12 months), unless that failure is due to reasonable cause.
(b) (1) For purposes of subdivision (a), the amount determined under this subdivision for any month is the product of the following:
(2) Eighteen dollars ($18), multiplied by the number of persons who were shareholders in the “S” corporation during any part of the taxable year.
(c) The penalty imposed by subdivision (a) shall be assessed against the “S” corporation.
(d) Article 3 (commencing with Section 19031), relating to deficiency assessments, shall not apply with respect to the assessment or collection of any penalty imposed by subdivision (a).
(e) This section shall apply to returns required to be filed after the effective date of the act adding this section.
(Added by Stats. 2010, Ch. 14, Sec. 49. (SB 401) Effective January 1, 2011.)
2023 California Code › Revenue and Taxation Code - RTC › DIVISION 2 - OTHER TAXES › PART 10.2 - ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS › CHAPTER 4 - Payments and Assessments › ARTICLE 7 - Penalties and Additions to Tax › Section 19173.

19173. (a) A penalty shall be imposed under this part for failure to maintain lists of advisees with respect to reportable transactions and shall be determined in accordance with Section 6708 of the Internal Revenue Code, except as otherwise provided.
(b) If a material advisor fails to meet the requirements of subdivision (d) of Section 18648 with respect to a listed transaction, as defined in Section 6707A(c)(2) of the Internal Revenue Code, an additional penalty shall be imposed equal to the greater of:
(1) One hundred thousand dollars ($100,000).
(2) Fifty percent of the gross income that the material advisor derived from that activity.
(c) A penalty imposed under this section does not apply if it is shown that the additional information required under paragraph (1) of subdivision (d) of Section 18648 was not identified in a Franchise Tax Board notice issued prior to the date the transaction or shelter was entered into.
(d) The penalty imposed by subdivision (a) shall be assessed against the person required to maintain or provide a list under Section 18648. The penalty may be assessed at any time during the period ending eight years after the failure has occurred.
(e) (1) The Chief Counsel of the Franchise Tax Board may rescind all or any portion of any penalty imposed by this section with respect to a list required to be maintained or provided under Section 18648, if all of the following apply:
(A) The violation is with respect to a reportable transaction, other than a listed transaction, as defined in Section 6707A(c)(2) of the Internal Revenue Code.
(B) The person on whom the penalty is imposed has a history of complying with the requirements of this part and Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001).
(C) It is shown that the violation is due to an unintentional mistake of fact.
(D) Imposing the penalty would be against equity and good conscience.
(E) Rescinding the penalty would promote compliance with the requirements of this part and Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) and effective tax administration.
(2) The exercise of authority under paragraph (1) shall be at the sole discretion of the Chief Counsel of the Franchise Tax Board and may not be delegated.
(3) Notwithstanding any other law or rule of law, any determination under this subdivision may not be reviewed in any administrative or judicial proceeding.
(f) Article 3 (commencing with Section 19031) of this chapter (relating to deficiency assessments) shall not apply with respect to the assessment or collection of any penalty imposed by subdivision (a).
(g) The penalty imposed by this section is in addition to any penalty imposed under Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or this part.
(Amended by Stats. 2005, Ch. 691, Sec. 47.4. Effective October 7, 2005.)