ARTICLE 2. Deficiency Determinations
(Article 2 added by Stats. 1959, Ch 1040.)
30201. If the board is dissatisfied with the report or return filed by any person,
it may compute and determine the amount to be paid upon the basis of any
information available to it. One or more deficiency determinations may
be made of the amount of tax due for one or for more than one month.
History.—Stats. 1989, Ch. 634, in effect September 21, 1989, added "or return" after "report"
30202. The amount of the determination, exclusive of penalties, shall bear interest
at the modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the date the amount of the tax, or any
portion thereof, should have been reported until the date of payment.
History.—Stats. 1967, p. 2521, operative August 1, 1967, substituted "date" for "fifteenth day after the close of the month for which." Stats. 1975, Ch. 661, operative to interest accruing on or after January 1, 1976, substituted "1 percent" for "one-half of 1 percent." Stats. 1982, Ch. 5, First Extra Session, in effect May 27, 1982, substituted "adjusted … 19269" for "rate … thereof" before "from." Stats. 1984, Ch. 1020, effective January 1, 1985, operative July 1, 1985, substituted "Section 6591.5" for "Section 19269.
30203. In making a determination the board may offset overpayments for a month or months against underpayments for another month or months and against the interest and penalties on the underpayments.
30204. If any part of the deficiency for which a deficiency determination is made is due to negligence or intentional disregard of this part or the rules and regulations adopted under this part, a penalty of 10 percent of the amount of the determination shall be added thereto.
30205. If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade this part or the rules and regulations adopted under this part, a penalty of 25 percent of the amount of the determination shall be added thereto.
30206. The board shall give the person written notice of its determination. The
notice shall be placed in a sealed envelope, with postage paid, addressed
to the person at his address as it appears in the records of the board.
The giving of notice shall be deemed complete at the time of deposit of
the notice in the United States Post Office, or a mailbox, sub-post office,
substation or mail chute or other facility regularly maintained or provided
by the United States Postal Service, without extension of time for any
reason. In lieu of mailing a notice may be served personally by delivering
to the person to be served and service shall be deemed complete at the
time of such delivery. Personal service to a corporation may be made by
delivery of a notice to any person designated in the Code of Civil Procedure
to be served for the corporation with summons and complaint in a civil action.
History.—Stats. 1974, Ch. 610, effective January 1, 1975, revised and enlarged the section and deleted the reference to Section 1013 of the C.C.P
30207. Except in the case of fraud, intent to evade the tax, or failure to make
a report or return, every notice of a deficiency determination shall be
given within three years after the 25th day of the month following the
month for which the amount should have been paid or the report or return
was due, or within three years after the report or return was filed, whichever
period expires later. In the case of failure to make a report or return,
the notice of determination shall be mailed within eight years after the
date the report or return was due.
History.—Stats. 1968, p. 1102, in effect November 13, 1968, substituted "25th day … for which" for "date when". Stats. 1993, Ch. 1113, in effect January 1, 1994, added "or return" following "report"; and substituted "paid or the report … return was due" for "reported" at the end of the section
30207.1. In the case of a deficiency arising under this part during the lifetime
of a decedent, a notice of deficiency determination shall be mailed within
four months after written request therefor, in the form required by the
board, by the fiduciary of the estate or trust or by any other person
liable for the tax or any portion thereof.
History.—Added by Stats. 1968, p. 2449, in effect November 13, 1968
30208. If before the expiration of the time prescribed in Section 30207 for the
mailing of a notice of deficiency determination the taxpayer has consented
in writing to the mailing of the notice after such time, the notice may
be mailed at any time prior to the expiration of the period agreed upon.
The period so agreed upon may be extended by subsequent agreements in
writing made before the expiration of the period previously agreed upon.
History.—Added by Stats. 1965, p. 4441, in effect September 17, 1965