California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 2.6 - Administration of Franchise and Income Tax › Subchapter 4 - Payments and Assessments › Article 3 - Deficiency Assessments › Section 19059 - Period of Limitation for Proposing Deficiency After Federal Changes

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Section
					 18622,
					 of the Revenue and Taxation Code, requires that a taxpayer report certain
					 specified federal changes.
Such notification shall be made by mailing to the
						Franchise Tax Board, Audit Section, P.O. Box 1673, Sacramento, CA 95812-1673,
						Attn: RAR/VOL, the original or a copy of the final determination or
						renegotiation agreement as well as any other data upon which such final
						determination or renegotiation agreement is claimed. If requested to do so the
						Franchise Tax Board will make a copy of any final determination or
						renegotiation agreement furnished to it, and return the taxpayer's copy to him.
						The notification must be given by the taxpayer regardless of whether he
						believes any modification of his tax liability will be required. However, a
						nonresident taxpayer shall give such notification, and shall file an amended
						return as required by subsection (b) of this regulation, only if the change,
						results of renegotiation or amended return relate to income taxable to a
						nonresident under Chapter 11 of the Personal Income Tax Law.
(b) A taxpayer who files an amended return
					 with the United States Treasury Department shall also file, within 90 days
					 thereafter, a similarly amended return with the Franchise Tax Board and shall
					 pay the additional tax, if any, shown to be due thereon.
(c) Within six months after receipt of any
					 such notification of filing of an amended return, or at any time within four
					 years if such notification is not given or amended return is not filed, the
					 Franchise Tax Board will recompute the amount of tax and if it appears from
					 such recomputation that an additional tax is due will issue an assessment,
					 notwithstanding the limitations of time within which an assessment may
					 otherwise be made.
(d) The
					 Franchise Tax Board is not required to accept as correct any modification in
					 taxable income as herein above set forth but may conduct an independent
					 investigation in regard thereto.
(e) A final determination is an irrevocable
					 determination or adjustment of a taxpayer's federal tax liability from which
					 there exists no further right of appeal either administrative or judicial. For
					 example:
(1) a closing agreement made under
					 Section 7121 of the Internal Revenue Code
					 of 1986 finally and irrevocably adjusting and settling a taxpayer's tax
					 liability.
(2) The 90-day
					 deficiency notice pursuant to Section
					 6213(a) of the
					 Internal Revenue Code of 1986 is a final determination, unless a timely
					 petition to redetermine the deficiency is filed in the Tax Court of the United
					 States, in which event the judgment of the court of last resort affirming the
					 deficiency, or the redetermination of the deficiency pursuant to a judgment of
					 the court of last resort is the final determination. But the determination does
					 not become final until the time for petitioning for a rehearing or appealing to
					 a higher court has expired.
(3) The
					 assessment of a deficiency pursuant to a waiver filed under Section
					 6213(d) of the
					 Internal Revenue Code of 1986 where no 90-day deficiency notice is
					 issued.