Bill Text: CA AB318 | 2011-2012 | Regular Session | Chaptered

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Bill Title: Franchise Tax Board: administration: penalties: legal

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-14 - Chaptered by Secretary of State - Chapter 313, Statutes of 2012. [AB318 Detail]

Download: California-2011-AB318-Chaptered.html

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BILL NUMBER: AB 318	CHAPTERED
	BILL TEXT

	CHAPTER  313
	FILED WITH SECRETARY OF STATE  SEPTEMBER 14, 2012
	APPROVED BY GOVERNOR  SEPTEMBER 14, 2012
	PASSED THE SENATE  AUGUST 21, 2012
	PASSED THE ASSEMBLY  AUGUST 24, 2012
	AMENDED IN SENATE  AUGUST 14, 2012
	AMENDED IN ASSEMBLY  JANUARY 4, 2012

INTRODUCED BY   Assembly Member Skinner

                        FEBRUARY 9, 2011

   An act to add Section 18410 to, and to repeal and add Section
19135 of, the Revenue and Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 318, Skinner. Franchise Tax Board: administration: penalties:
legal holiday.
   The Personal Income Tax Law and the Corporation Tax Law establish
specified dates for the filing of tax returns, and provide that if
the last day for filing a return falls on a Saturday, Sunday, or
other legal holiday, returns may be filed and payments made on the
following day without penalty.
   This bill would conform to federal income tax law regarding the
definition of a legal holiday for the purposes of the Personal Income
Tax Law and the Corporation Tax Law.
   The Corporation Tax Law imposes taxes measured by income at a
specified rate. Existing law provides that whenever any foreign
corporation that fails to qualify to do business in this state or
whose powers, rights, and privileges have been forfeited, or any
domestic corporation that has been suspended, and that is doing
business in this state, fails to make and file a return, as provided,
the Franchise Tax Board shall impose a penalty of $2,000 per taxable
year, as specified.
   This bill would also make this penalty applicable to a foreign
limited liability company that fails to qualify to do business in
this state or whose powers, rights, and privileges have been
forfeited and to a domestic limited liability company that has been
suspended and that is doing business in this state, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 18410 is added to the Revenue and Taxation
Code, to read:
   18410.  For purposes of Part 10 (commencing with Section 17001),
Part 11 (commencing with Section 23001), and this part, a legal
holiday includes a federal legal holiday recognized by the Internal
Revenue Service under Section 7503 of the Internal Revenue Code.
  SEC. 2.  Section 19135 of the Revenue and Taxation Code is
repealed.
  SEC. 3.  Section 19135 is added to the Revenue and Taxation Code,
to read:
   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.