Southern California Appeals & Settlement Office Initiative
The Board of Equalization (BOE) approved a Budget Change Proposal (BCP) that expedites the settlement of tax appeals and accelerates state revenue. This proposal established the Southern California Appeals and Settlement Unit.
The downward turn in the economy caused a corresponding change in taxpayer behavior and financial practices. Specifically, more and more taxpayers are motivated to seek settlements or appeal their audit findings for as long as possible so as to defer and minimize tax liabilities. As a result, there was a significant increase in the incoming cases in the prior two fiscal years.
Consequently, there was a substantial increase in inventory levels in the Settlement and Appeals Divisions. In addition, the nature of the cases had become increasingly complex as more taxpayers opted to defer final disposition of their tax disputes by appealing and/or submitting settlement offers, thus avoiding for as long as possible payment of their tax liabilities. The increased complexity in incoming cases requires extensive analysis; i.e., more attorney and auditor time researching, drafting, and preparing multiple formal documents for the Board's consideration.
Over 55 percent of all settlement and appeals cases are filed by Southern California taxpayers. Establishing the Southern California Appeals and Settlement Unit empowered the Board to address these significant increases and accelerate revenues.
The Southern California Appeals and Settlement Unit creates many benefits to California taxpayers. Specifically, it accelerates the resolution of these cases for taxpayers and limits interest accruing on unpaid assessments. In addition, the Southern California Appeals and Settlement Unit significantly increases the possibility of collection by accelerating the resolution of appeals and revenues to the general fund, as well as local jurisdictions and special taxing districts, and avoiding the loss of potentially collectible amounts.
October 1, 2011: Since its inception, through September 30, 2011, the Southern California Appeals and Settlement Unit accelerated revenues of $19.8 million.
5901 Green Valley Circle
Suite 200, 90230-6948
(PO Box 3652, 90231-3652)
12440 E. Imperial Highway
Suite 200, 90650-8397
(PO Box 409, 90651-0409)
15350 Sherman Way
Suite 250, 91406-4203
(PO Box 7735, 91409-7735)
1521 West Cameron Ave.
Suite 300, 91790-2738
(PO Box 1500, 91793-1500)