Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales And Use Tax Law

CHAPTER 8. ADMINISTRATION

Article 3. The California Taxpayers' Bill of Rights*

Section 7096

7096. Claim for reimbursement of bank charges by taxpayer. (a) A taxpayer may file a claim with the board for reimbursement of bank charges and any other reasonable third-party check charge fees incurred by the taxpayer as the direct result of an erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action by the board. Bank and third-party charges include a financial institution's or third party's customary charge for complying with the levy or notice to withhold instructions and reasonable charges for overdrafts that are a direct consequence of the erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action. The charges are those paid by the taxpayer and not waived or reimbursed by the financial institution or third party. Each claimant applying for reimbursement shall file a claim with the board that shall be in the form as may be prescribed by the board. In order for the board to grant a claim, the board shall determine that both of the following conditions have been satisfied:

(1) The erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action was caused by board error.

(2) Prior to the erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action, the taxpayer responded to all contacts by the board and provided the board with any requested information or documentation sufficient to establish the taxpayer's position. This provision may be waived by the board for reasonable cause.

(b) Claims pursuant to this section shall be filed within 90 days from the date the bank and third-party charges were incurred by the taxpayerdeletion. Within 30 days from the date the claim is received, the board shall respond to the claim. If the board denies the claim, the taxpayer shall be notified in writing of the reason or reasons for the denial of the claim.

History.—Stats. 1991, Ch. 236, in effect July 29, 1991, added "or notice to withhold" after "levy" throughout entire text of section. Stats. 2001, Ch. 543 (SB 1185), in effect January 1, 2002, added "and any other . . . fees" after "bank charges" in the first sentence, added "and third-party" after "board. Bank" and added "or third party's" after "financial institution's" in the second sentence, and added "or third party" after "financial institution" in the third sentence, and substituted "that" for "which" after "with the board", substituted "the" for "such" after "shall be in" in the fourth sentence. Stats. 2011, Ch. 727 (AB 242), in effect January 1, 2012, added ", erroneous processing action, or erroneous collection action" after "notice to withhold" in the first and second sentences and in paragraph (1) of subdivision (a), and in the first sentence of subdivision (b); added "erroneous" after "Prior to the" and added "erroneous processing action, or erroneous collection action," after "notice of withhold," in the first sentence of paragraph (2) of subdivision (a), and added "erroneous" after "date of the" in the first sentence of subdivision (b). Stats. 2013, Ch. 253 (SB 442), in effect January 1, 2014, substituted "the bank . . . the taxpayer" for "of the erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action" after "from the date" in subdivision (b).

* Article 3 was added by Stats. 1988, Ch. 1574, in effect January 1, 1989.