ARTICLE 3. Determinations If No Report or Return Made
(Heading of Article 3 amended by Stats. 1989, Ch. 634, Sec. 32.)
30221. If any person fails to make a report or return, the board shall make an
estimate of the number of cigarettes or the wholesale cost of tobacco
products distributed by him or her. The estimate shall be made for the
month or months in respect to which the person failed to make a report
or return and shall be based upon any information available to the board.
Upon the basis of this estimate the board shall compute and determine
the amount required to be paid to the state, adding to the sum thus fixed
a penalty equal to 10 percent thereof. One or more determinations may
be made for one or for more than one month.
History.—Stats. 1967, p. 2521, operative August 1, 1967, deleted ", sold or received" following "distributed" in the first sentence. Stats. 1989, Ch. 634, in effect September 21, 1989, added "or return" after "report" in the first and second sentences, added "or the … products" before "distributed" and added "or her" after "him" in the first sentence
30222. In making a determination the board may offset overpayments for a month or months against underpayments for another month or months and against interest and penalties on the underpayments.
30223. . 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, 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 "modified … thereof" for "adjusted annual rate" before "established," substituted "Section 6591.5" for "Section 19269.
30224. If the failure of a person to file a report is due to fraud or an intent to evade the tax, a penalty of 25 percent of the amount required to be paid by the person, exclusive of penalties, shall be added thereto in addition to the 10 percent penalty provided in Section 30221.
30225. Promptly after making its determination the board shall give to the person written notice of its estimate and determination, and of the penalty, the notice to be served personally or by mail in the manner prescribed for service of notice of a deficiency determination.