CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 375Introduced by Senator BradfordFebruary 14, 2017 An act to add Section 19188 to the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 375, as introduced, Bradford. Income taxation: penalty relief. Existing law imposes penalties when a taxpayer fails to timely file an income tax return or fails to timely pay the tax due as shown on, or as required to be shown on, the tax return, unless it is shown that the failure is due to reasonable cause and not due to willful neglect. This bill, for taxable years beginning on and after January 1, 2018, would require the Franchise Tax Board to provide relief from a penalty that otherwise would be applicable for failure to file a tax return or failure to pay tax when due if the taxpayer was not previously required to file a return or the taxpayer has no penalties for the 4 taxable years before the taxable year for which the penalty was applied, the taxpayer has filed all currently required returns or filed an extension of time to file, and the taxpayer has paid, or arranged to pay, any tax due.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. It is the intent of the Legislature to enact legislation that would require the Franchise Tax Board to provide a first-time penalty abatement waiver to relieve taxpayers from a penalty for failure to file a tax return or for failure to pay the tax due, similar to the administrative waiver that may be granted by the Internal Revenue Service, for first-time taxpayers or for taxpayers who have had no penalties for the previous four years.SEC. 2. Section 19188 is added to the Revenue and Taxation Code, to read:19188. Notwithstanding any other law, with respect to taxable years beginning on or after January 1, 2018, the Franchise Tax Board shall provide relief from penalties that otherwise would be applicable for failure to file a tax return or failure to timely pay the amount due, when all of the following requirements are met:(a) The taxpayer was not previously required to file a return or the taxpayer has no penalties for the four taxable years before the taxable year for which the penalty was applied.(b) The taxpayer has filed all currently required returns or filed an extension of time to file.(c) The taxpayer has paid, or arranged to pay, any tax due.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 375Introduced by Senator BradfordFebruary 14, 2017 An act to add Section 19188 to the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTSB 375, as introduced, Bradford. Income taxation: penalty relief. Existing law imposes penalties when a taxpayer fails to timely file an income tax return or fails to timely pay the tax due as shown on, or as required to be shown on, the tax return, unless it is shown that the failure is due to reasonable cause and not due to willful neglect. This bill, for taxable years beginning on and after January 1, 2018, would require the Franchise Tax Board to provide relief from a penalty that otherwise would be applicable for failure to file a tax return or failure to pay tax when due if the taxpayer was not previously required to file a return or the taxpayer has no penalties for the 4 taxable years before the taxable year for which the penalty was applied, the taxpayer has filed all currently required returns or filed an extension of time to file, and the taxpayer has paid, or arranged to pay, any tax due.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Senate Bill No. 375
Introduced by Senator BradfordFebruary 14, 2017
Introduced by Senator Bradford
February 14, 2017
An act to add Section 19188 to the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 375, as introduced, Bradford. Income taxation: penalty relief.
Existing law imposes penalties when a taxpayer fails to timely file an income tax return or fails to timely pay the tax due as shown on, or as required to be shown on, the tax return, unless it is shown that the failure is due to reasonable cause and not due to willful neglect. This bill, for taxable years beginning on and after January 1, 2018, would require the Franchise Tax Board to provide relief from a penalty that otherwise would be applicable for failure to file a tax return or failure to pay tax when due if the taxpayer was not previously required to file a return or the taxpayer has no penalties for the 4 taxable years before the taxable year for which the penalty was applied, the taxpayer has filed all currently required returns or filed an extension of time to file, and the taxpayer has paid, or arranged to pay, any tax due.
Existing law imposes penalties when a taxpayer fails to timely file an income tax return or fails to timely pay the tax due as shown on, or as required to be shown on, the tax return, unless it is shown that the failure is due to reasonable cause and not due to willful neglect.
This bill, for taxable years beginning on and after January 1, 2018, would require the Franchise Tax Board to provide relief from a penalty that otherwise would be applicable for failure to file a tax return or failure to pay tax when due if the taxpayer was not previously required to file a return or the taxpayer has no penalties for the 4 taxable years before the taxable year for which the penalty was applied, the taxpayer has filed all currently required returns or filed an extension of time to file, and the taxpayer has paid, or arranged to pay, any tax due.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. It is the intent of the Legislature to enact legislation that would require the Franchise Tax Board to provide a first-time penalty abatement waiver to relieve taxpayers from a penalty for failure to file a tax return or for failure to pay the tax due, similar to the administrative waiver that may be granted by the Internal Revenue Service, for first-time taxpayers or for taxpayers who have had no penalties for the previous four years.SEC. 2. Section 19188 is added to the Revenue and Taxation Code, to read:19188. Notwithstanding any other law, with respect to taxable years beginning on or after January 1, 2018, the Franchise Tax Board shall provide relief from penalties that otherwise would be applicable for failure to file a tax return or failure to timely pay the amount due, when all of the following requirements are met:(a) The taxpayer was not previously required to file a return or the taxpayer has no penalties for the four taxable years before the taxable year for which the penalty was applied.(b) The taxpayer has filed all currently required returns or filed an extension of time to file.(c) The taxpayer has paid, or arranged to pay, any tax due.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. It is the intent of the Legislature to enact legislation that would require the Franchise Tax Board to provide a first-time penalty abatement waiver to relieve taxpayers from a penalty for failure to file a tax return or for failure to pay the tax due, similar to the administrative waiver that may be granted by the Internal Revenue Service, for first-time taxpayers or for taxpayers who have had no penalties for the previous four years.
SECTION 1. It is the intent of the Legislature to enact legislation that would require the Franchise Tax Board to provide a first-time penalty abatement waiver to relieve taxpayers from a penalty for failure to file a tax return or for failure to pay the tax due, similar to the administrative waiver that may be granted by the Internal Revenue Service, for first-time taxpayers or for taxpayers who have had no penalties for the previous four years.
SECTION 1. It is the intent of the Legislature to enact legislation that would require the Franchise Tax Board to provide a first-time penalty abatement waiver to relieve taxpayers from a penalty for failure to file a tax return or for failure to pay the tax due, similar to the administrative waiver that may be granted by the Internal Revenue Service, for first-time taxpayers or for taxpayers who have had no penalties for the previous four years.
### SECTION 1.
SEC. 2. Section 19188 is added to the Revenue and Taxation Code, to read:19188. Notwithstanding any other law, with respect to taxable years beginning on or after January 1, 2018, the Franchise Tax Board shall provide relief from penalties that otherwise would be applicable for failure to file a tax return or failure to timely pay the amount due, when all of the following requirements are met:(a) The taxpayer was not previously required to file a return or the taxpayer has no penalties for the four taxable years before the taxable year for which the penalty was applied.(b) The taxpayer has filed all currently required returns or filed an extension of time to file.(c) The taxpayer has paid, or arranged to pay, any tax due.
SEC. 2. Section 19188 is added to the Revenue and Taxation Code, to read:
### SEC. 2.
19188. Notwithstanding any other law, with respect to taxable years beginning on or after January 1, 2018, the Franchise Tax Board shall provide relief from penalties that otherwise would be applicable for failure to file a tax return or failure to timely pay the amount due, when all of the following requirements are met:(a) The taxpayer was not previously required to file a return or the taxpayer has no penalties for the four taxable years before the taxable year for which the penalty was applied.(b) The taxpayer has filed all currently required returns or filed an extension of time to file.(c) The taxpayer has paid, or arranged to pay, any tax due.
19188. Notwithstanding any other law, with respect to taxable years beginning on or after January 1, 2018, the Franchise Tax Board shall provide relief from penalties that otherwise would be applicable for failure to file a tax return or failure to timely pay the amount due, when all of the following requirements are met:(a) The taxpayer was not previously required to file a return or the taxpayer has no penalties for the four taxable years before the taxable year for which the penalty was applied.(b) The taxpayer has filed all currently required returns or filed an extension of time to file.(c) The taxpayer has paid, or arranged to pay, any tax due.
19188. Notwithstanding any other law, with respect to taxable years beginning on or after January 1, 2018, the Franchise Tax Board shall provide relief from penalties that otherwise would be applicable for failure to file a tax return or failure to timely pay the amount due, when all of the following requirements are met:(a) The taxpayer was not previously required to file a return or the taxpayer has no penalties for the four taxable years before the taxable year for which the penalty was applied.(b) The taxpayer has filed all currently required returns or filed an extension of time to file.(c) The taxpayer has paid, or arranged to pay, any tax due.
19188. Notwithstanding any other law, with respect to taxable years beginning on or after January 1, 2018, the Franchise Tax Board shall provide relief from penalties that otherwise would be applicable for failure to file a tax return or failure to timely pay the amount due, when all of the following requirements are met:
(a) The taxpayer was not previously required to file a return or the taxpayer has no penalties for the four taxable years before the taxable year for which the penalty was applied.
(b) The taxpayer has filed all currently required returns or filed an extension of time to file.
(c) The taxpayer has paid, or arranged to pay, any tax due.