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 6. APPEALS CONFERENCES

Rule 5267

5267. Issuance of Post Appeals Conference Notices; Board Approval.

The following rules apply where there is no timely request for Board hearing, or a request for a discretionary Board hearing has been denied, following the issuance of the Decision and Recommendation or, if applicable, Supplemental Decision and Recommendation.

(a) The recommendation of the Appeals Division will be held in abeyance, if:

(1) The facts and circumstances involved in the taxpayer’s appeal are similar to the facts and circumstances involved in another pending matter;

(2) The Appeals Division’s recommendation to grant or deny the taxpayer’s appeal in whole or in part may have a direct or indirect effect on the outcome of the other pending matter; and

(3) The Chief Counsel determines that the Department, the Appeals Division, or the Board needs to review or decide the other pending matter in conjunction with the taxpayer’s appeal.

(b) Except as provided in subdivision (a), where the Appeals Division recommends that an appeal be granted in whole or in part and that tax and penalty (excluding for fraud or evasion) not exceeding $100,000 be refunded, credited, or canceled, a Notice of Redetermination, Statement of Account, or Notice of Refund will be promptly issued based on that recommendation.

(c) Except as provided in subdivision (a), where the Appeals Division recommends that an appeal be granted in whole or in part and that tax and penalty in excess of $100,000 be refunded, credited, or canceled or that a fraud or evasion penalty in any amount be canceled, the recommendation will be submitted to the deletionDeputy Director of the Board’s Department responsible for administering the tax for approval deletion, at which time:

(1) The deletionDeputy Director may approve the recommendation.

(2) The deletionDeputy Director may exercise deletion discretion to make deletionthe Deputy Director’ own determination as to whether the appeal should be granted, denied, or granted in part and denied in part, and may do so without further documentation or testimony from the taxpayerdeletion. 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 Director’s determination will be more favorable to the taxpayer than the result of the Appeals Division’s recommendation, then the Deputy Director’s letter shall advise the taxpayer that its appeal will be granted or denied in accordance with the Deputy Director’s determination. However, if the result of the Deputy Director’s determination will be less favorable to the taxpayer than the result of the Appeals Division’s recommendation, then:

(A) The letter shall advise the taxpayer that the appeal will be granted or denied in accordance with the Deputy Director’s determination, unless the taxpayer requests a Board hearing within 30 days of the date of the letter; and

(B) If the taxpayer thereafter timely requests a Board hearing, the Board Proceedings Division will schedule the requested hearing. However, the appeal will be granted or denied in accordance with the Deputy Director’s findings if the taxpayer does not timely request a Board hearing or a timely request for a discretionary Board hearing is denied.

deletion

(d) If deletionthe Appeals Division or a Deputy Director recommends that an amount determined pursuant to the Integrated Waste Management Fee Law exceeding $15,000 be canceled, or otherwise recommends that an amount exceeding $50,000 be refunded, credited, or canceleddeletion, the proposed action to refund, credit, or cancel such amount 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 6074, 6456, 6538, 6562, 6592, 6593, 6593.5, 6596, 6814, 6901, 6902, 6906, 6981, 7657, 7657.1, 7658, 7658.1, 7700, 7700.5, 7711, 8126, 8128, 8191, 8828, 8828.5, 8852, 8877, 8878, deletion8878.5, 8879, 9151, 9152, 9196, 12429, 12636, 12637, 12951, 12977, 12978, 12981, 30175, 30176, 30176.1, 30176.2, 30177, 30178, 30178.1, 30243, 30243.5, 30262, 30282, 30283, 30283.5, 30284, 30361, 30362, 30365, 30421, 32255, 32256, 32256.5, 32257, 32302, 32312, 32313, 32401, 32402, 32402.1, 32404, 32407, 32440, 38433, 38435, 38443, 38452, 38453, 38454, 38455, 38601, 38602, 38605, 38631, 40093, 40102, 40103, 40103.5, 40104, 40111, 40112, 40115, 40121, 41087, 41096, 41097, 41097.5, 41098, 41100, 41101, 41104, 41107, 43157, 43158, 43158.5, 43159, 43303, 43351, 43352, 43451, 43452, 43454, 43491, 45155, 45156, 45156.5, 45157, 45303, 45352, 45353, 45651, 45652, 45654, 45801, 46156, 46157, 46157.5, 46158, 46302, 46303, 46353, 46501, 46502, 46505, deletion46551, 50112.2, 50112.3, 50112.4, 50112.5, 50116, 50120.2, 50120.3, 50139, 50140, 50142, 50151, 55044, 55045, 55046, 55046.5, 55083, 55102, 55103, 55221, 55222, 55224, 55281, 60209, 60210, 60211, 60212, 60332, 60333, 60352, 60501, 60502, 60506, 60507, 60521, 60522, 60581.

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

2. Amendments adopted November 19, 2013, effective April 1, 2014. The amendments added "; Board Approval" to the title of the regulation and replaced all of the prior text of the regulation with new text.

3. Amendments adopted December 16, 2015, effective March 1, 2016. The amendments replaced "Board" with "Deputy Director of the Board’s Department responsible for administering the tax" and deleted "as a nonappearance item" from after "approval" in subdivision (c); replaced "Board" with "Deputy Director" at the beginning of subdivision (c)(1) and (2); deleted "its" after "exercise," replaced "its" with "the Deputy Director’s," and inserted "and may do so" before "without" in the first sentence in subdivision (c)(2); deleted ", but may do so with respect to an appeal for which the taxpayer has a statutory right to a Board hearing only if the result will be more favorable to the taxpayer than the result recommended by the Appeals Division" from the end of the first sentence in subdivision (c)(2); added the second, third, and fourth sentences to subdivision (c)(2) and added subdivision (c)(2)(A) and (B); deleted subdivision (c)(3); replaced "a Decision and Recommendation or, if applicable, Supplemental Decision and Recommendation," with "the Appeals Division or a Deputy Director" in subdivision (d); and deleted ", and the recommendation does not require Board approval" from before "the proposed action" in subdivision (d).