California Code of Regulations › Title 18 - Public Revenues › Division 5 - California Department of Tax and Fee Administration › Chapter 1 - Appeals › Article 2a - Petitioning Notices of Determination › Section 35017 - Review of a Petition by the Assigned Section

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				  assigned section must review the petition, notice of determination, and all
				  other relevant information available to it in reaching findings on behalf of
				  BTFD, subject to the oversight of the Deputy Director.
(b) The assigned section may refer the
				  petition to the CDTFA office or section that issued the notice being petitioned
				  for further investigation and comment, but any findings resulting from such
				  referral are tentative and subject to review by the assigned section. The
				  assigned section will promptly notify the taxpayer of such a referral, provide
				  assistance needed to complete the investigation, monitor the progress of the
				  CDTFA office or other section to which the petition is referred, and respond to
				  the taxpayer's requests for updates regarding such progress.
(c) Where the assigned section, or the CDTFA
				  office or other section to whom the petition is referred, believes additional
				  documentary evidence is needed as support for the petition for redetermination,
				  it will contact the petitioner and request such information. The failure to
				  provide such information upon request may result in the assigned section's
				  conclusion that the petition for redetermination should be denied.
(d) The assigned section must look for
				  consistency, adequacy of procedures, proper application of law, and
				  consideration of any recent law or regulatory changes or precedential opinions
				  from the Office of Tax Appeals that may affect the audit or investigation
				  findings, where appropriate.
(e)
				  Upon completion of the review, the assigned section will mail the taxpayer a
				  letter to advise the taxpayer of its findings.
(f) Where the findings of the assigned
				  section are that all matters put into dispute by the petition should be
				  resolved in the taxpayer's favor, the assigned section will mail the taxpayer a
				  letter notifying the taxpayer of the assigned section's findings and advising
				  that, except as provided in subdivision (j), the appeal will be resolved in
				  accordance with those findings unless, within 30 days of the date of the
				  letter, the taxpayer advises the assigned section that its findings do not
				  resolve all matters and that some matter remains in dispute.
(g) If, within 30 days of a letter issued
				  pursuant to subdivision (f), the taxpayer responds advising the assigned
				  section that some matter remains in dispute, the assigned section will consider
				  the remaining dispute. If the assigned section's findings are that the dispute
				  should be resolved in the taxpayer's favor, the assigned section will mail a
				  letter notifying the taxpayer of those findings and advising that, except as
				  provided in subdivision (j), the appeal will be resolved in accordance with
				  those findings. Otherwise, the provisions of subdivision (h) are
				  applicable.
(h) Where the findings
				  of the assigned section are that some or all of the matters put into dispute by
				  the petition should not be resolved in the taxpayer's favor and the taxpayer
				  has not previously requested an appeals conference, the assigned section will
				  mail the taxpayer a letter notifying the taxpayer of the assigned section's
				  findings and advising that, except as provided in subdivision (j), the appeal
				  will be resolved in accordance with those findings unless, within 30 days of
				  the date of that letter, the taxpayer makes a written request to the assigned
				  section for an appeals conference. If the taxpayer submits a written request
				  within 30 days for an appeals conference, the appeal will be forwarded to the
				  Appeals Bureau for the scheduling of an appeals conference; otherwise, unless
				  an appeals conference is requested by another party as provided in subdivision
				  (j), the appeal will be resolved in accordance with the assigned section's
				  findings as stated in its letter to the taxpayer. However, the Deputy Director
				  may, in the Deputy Director's sole discretion, reinstate an appeal if, before
				  the taxpayer's Notice of Redetermination is issued, the taxpayer submits a
				  written request for an appeals conference and documentation that establishes
				  that the taxpayer was unavailable (e.g., out of town, hospitalized, or
				  incarcerated) to reply to the assigned section's letter within the 30 days
				  allowed and the taxpayer submitted the request for an appeals conference within
				  30 days of the date the taxpayer became available.
(i) Where the findings of the assigned
				  section are that some or all of the matters put into dispute by the petition
				  should not be resolved in the taxpayer's favor and the taxpayer had previously
				  requested an appeals conference, the assigned section will mail a letter to the
				  taxpayer either advising the taxpayer that the appeal will be forwarded to the
				  Appeals Bureau for the scheduling of an appeals conference, or requesting the
				  taxpayer to confirm its prior request for an appeals conference.
(1) Reasons for asking for confirmation
				  include that the taxpayer failed to respond to requests for additional
				  supporting information or documentation, or that the assigned section believes
				  that the taxpayer accepts its findings.
(2) If the assigned section asks the taxpayer
				  to confirm its prior request, the assigned section will state the reason it is
				  asking for confirmation, and will also explain that, unless the taxpayer
				  confirms in writing to the assigned section within 30 days of the date of the
				  letter from the assigned section that the taxpayer still wants an appeals
				  conference, the taxpayer's petition will be resolved in accordance with the
				  findings of the assigned section as stated in its letter.
(3) If the taxpayer confirms in writing
				  within 30 days of the date of the letter from the assigned section that the
				  taxpayer still wants an appeals conference, the appeal will be forwarded to the
				  Appeals Bureau for the scheduling of an appeals conference; otherwise, unless
				  an appeals conference is requested by another party as provided in subdivision
				  (j), the appeal will be resolved in accordance with the assigned section's
				  findings as stated in its letter to the taxpayer.