Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2016
 

Rules For Tax Appeals

Chapter 2. Sales and Use Tax, Timber Yield Tax, and Special Taxes and Fees

ARTICLE 3. CLAIMS FOR REFUND

Rule 5237

5237. deletionDeputy Director Approval Required for Refunds Over $100,000.

(a) If the assigned section determines that a refund in excess of $100,000 should be granted, the recommendation for the proposed refund must be submitted to the deletionDeputy Director of the assigned sectionís Department for approval deletion where such a claim is one for overpayment of diesel fuel tax filed under Revenue and Taxation Code section 60501 or 60502, or where such a claim is for overpayment of insurance tax prepayments.

(b) Once the recommendation is submitted to the deletionDeputy Director, the deletionDeputy Director may approve the assigned sectionís recommendation or exercise discretion to make deletionDeputy Director's own determination as to whether the claim for refund should be granted, denied, or granted in part and denied in part, and may do so without further documentation or testimony from the claimant.

(1) If Where the deletionDeputy Director approves the assigned sectionís recommendation to grant a refund, the assigned section will send the taxpayer a notice of refund showing the amount to be refunded, and will have a refund warrant prepared and sent to the taxpayer after determining if such amounts should be credited or offset against other liabilities as provided in section 5238.

(2) If the Deputy Director makes his or her own determination, then the Deputy Director will send the taxpayer a letter notifying the taxpayer of the determination. If the result of the Deputy Directorís determination will be more favorable to the taxpayer than the result of the assigned sectionís recommended determination, then the Deputy Directorís letter shall advise the taxpayer that its claim for refund will be granted or denied in accordance with the Deputy Directorís determination. However, if the result of the Deputy Directorís determination will be less favorable to the taxpayer than the result of the assigned sectionís recommended determination, then:

(A) The letter shall advise the taxpayer that the claim for refund will be granted or denied in accordance with the Deputy Directorís determination, unless the taxpayer requests an appeals conference or Board hearing within 30 days of the date of the letter; and

(B) If the taxpayer thereafter timely requests an appeals conference or Board hearing and the request is not denied under section 5236, the Board Proceedings Division will schedule an appeals conference; otherwise, the claim for refund will be granted or denied in accordance with the Deputy Directorís findings.

deletion

(deletionc) If the assigned section determines that a refund in excess of $100,000 should be denied, and the deletiontaxpayer has not requested an appeals conference with the Appeals Division or Board hearing, or confirmed a prior request for such a conference or hearing, or such prior requests were denied, the recommendation to deny the refund must be submitted to the deletionDeputy Director of the assigned sectionís Department for approval as provided in subdivision (b). If the deletionDeputy Director approves the assigned sectionís determination, the assigned section will send the taxpayer a notice of denial of claim for refund in accord with that determination.

(f) If the assigned section determines that a refund in excess of $50,000 should be granted and the determination is not required to be submitted to the Board, the proposed determination must be available as a public record for at least 10 days prior to its effective date.

Note: Authority cited: Government Code section 15606; Revenue and Taxation Code sections 7051, 8251, 9251, 13170, 30451, 32451, 38701, 40171, 41128, 43501, 45851, 46601, 50152, 55301, 60601.

Reference: Revenue and Taxation Code sections 6901, 8126, 9151, 12977, 30361, 32401, 38601, 40111, 41100, 43451, 45651, 46501, 50139, 55221, 60521.

History: 1. New section adopted 9-12-2007; effective 2-6-2008.

2. Amendments adopted October 6, 2009, effective February 19, 2010. Replaced $50,000 with $100,000 in title and subdivisions (a), (d), and (f), and added new subdivision (g).

3. Amendments adopted November 19, 2013, effective April 1, 2014. The amendments deleted "Board Staff in" from before and deleted "or group" after "the assigned section" and added the text after "Board" in subdivision (a); replaced "a refund is warranted and in what amount" with "the claim for refund should be granted, denied, or granted in part and denied in part and replaced "will" with "may" in the first sentence in subdivision (b); added the second sentence to subdivision (b); deleted "Board Staff in" from before "the assigned section" in subdivision (d); deleted subdivision (e); renumbered subdivisions (f) and (g) as subdivisions (e) and (f), respectively; deleted "Board Staff in" from before "the assigned section," replaced "disagreed with such determination by requesting" with "requested," replaced "oral" with "Board" before and deleted "before the Board" after "hearing," and deleted "as provided in subdivision (a)" from after "approval" in the first sentence in renumbered subdivision (e); added the second sentence to renumbered subdivision (e); and replaced "Board Staff" with "the assign section" in renumbered subdivision (f).

4. Amendments adopted December 16, 2015, effective March 1, 2016. The amendments replaced "Board" with "Deputy Director" in the regulationís title; replaced "Board" with "Deputy Director of the Assigned Sectionís Department" and deleted "where such a claim is for a duplicate or erroneous payment made through the electronic funds transfer program," from after "except" in subdivision (a); replaced "Board" with "Deputy Director," replaced "Board has" with "Deputy Director may approve the assigned sectionís recommendation or exercise," replaced "its" with "the Deputy Directorís," and replaced "claimant" with "taxpayer" in the first sentence in subdivision (b); reformatted the second sentence in subdivision (b) as subdivision (b)(1) and added a new subdivision (b)(2); replaced "Where the Board approves" with "If the Deputy Director approves the assigned sectionís recommendation to grant" at the beginning of subdivision (b)(1); deleted subdivisions (c) and (d) and renumbered subdivisions (e) and (f) as (c) and (d), respectively; replaced "claimant" with "taxpayer," replaced "Board" with "Deputy Director of the assigned sectionís Department," and added "as provided in subdivision (b)" after "approval" in the first sentence in renumbered subdivision (c); replaced "Board" with "Deputy Director" in the second sentence in renumbered subdivision (c); added "or the Deputy Director of the assigned sectionís Department" to renumbered subdivision (d); and deleted "and the determination is not required to be submitted to the Board" from after "granted" in renumbered subdivision (d).