32260-32263

REVENUE AND TAXATION CODE
SECTION 32260-32263




32260.  (a) Any person whose estimated tax liability under this part
averages twenty thousand dollars ($20,000) or more per month, as
determined by the board pursuant to methods of calculation prescribed
by the board, shall remit amounts due by an electronic funds
transfer under procedures prescribed by the board.
   (b) Any person whose estimated tax liability under this part
averages less than twenty thousand dollars ($20,000) per month may
elect to remit amounts due by electronic funds transfer with the
approval of the board.
   (c) Any person remitting amounts due pursuant to subdivision (a)
or (b) shall perform electronic funds transfer in compliance with the
due dates set forth in Article 1 (commencing with Section 32251).
Payment is deemed complete on the date the electronic funds transfer
is initiated if settlement to the state's demand account occurs on or
before the banking day following the date the transfer is initiated.
If settlement to the state's demand account does not occur on or
before the banking day following the date the transfer is initiated,
payment is deemed to occur on the date settlement occurs.
   (d) Any person remitting taxes by electronic funds transfer shall,
on or before the due date of the remittance, file a return for the
preceding reporting period in the form and manner prescribed by the
board. Any person who fails to timely file the required return shall
pay a penalty of 10 percent of the amount of taxes, with respect to
the period for which the return is required.
   (e) Any person required to remit taxes pursuant to this article
who remits those taxes by means other than appropriate electronic
funds transfer shall pay a penalty of 10 percent of the taxes
incorrectly remitted.
   (f) Any person who fails to pay any tax to the state or any amount
of tax required to be collected and paid to the state, except
amounts of determinations made by the board under Article 2
(commencing with Section 32271) or Article 3 (commencing with Section
32291), within the time required shall pay a penalty of 10 percent
of the tax or amount of tax, in addition to the tax or amount of tax,
plus interest at the modified adjusted rate per month, or fraction
thereof, established pursuant to Section 6591.5, from the date on
which the tax became due and payable to the state until the date of
payment.
   (g) In determining whether a person's estimated tax liability
averages twenty thousand dollars ($20,000) or more per month, the
board may consider tax returns filed pursuant to this part and any
other information in the board's possession.
   (h) The penalties imposed by subdivisions (d), (e), and (f) shall
be limited to a maximum of 10 percent of the taxes due for any one
return. Any person remitting taxes by electronic funds transfer shall
be subject to the penalties under this section and not Section
32252.
   (i) The board shall promulgate regulations pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2
of the Government Code for purposes of implementing this section.



32261.  If the board finds that a person's failure to make payment
by an appropriate electronic funds transfer in accordance with board
procedures is due to reasonable cause and circumstances beyond the
person's control, and occurred notwithstanding the exercise of
ordinary care and in the absence of willful neglect, that person
shall be relieved of the penalty provided in subdivision (e) of
Section 32260. Any person seeking to be relieved of the penalty shall
file with the board a statement under penalty of perjury setting
forth the facts upon which he or she bases his or her claim for
relief.


32262.  (a) "Electronic funds transfer" means any transfer of funds,
other than a transaction originated by check, draft, or similar
paper instrument, that is initiated through an electronic terminal,
telephonic instrument, or computer or magnetic tape, so as to order,
instruct, or authorize a financial institution to debit or credit an
account. Electronic funds transfers shall be accomplished by an
automated clearinghouse debit, an automated clearinghouse credit, or
by Federal Reserve Wire Transfer (Fedwire).
   (b) "Automated clearinghouse" means any federal reserve bank, or
an organization established in agreement with the National Automated
Clearing House Association, that operates as a clearinghouse for
transmitting or receiving entries between banks or bank accounts and
which authorizes an electronic transfer of funds between these banks
or bank accounts.
   (c) "Automated clearinghouse debit" means a transaction in which
the state, through its designated depository bank, originates an
automated clearinghouse transaction debiting the person's bank
account and crediting the state's bank account for the amount of tax.
Banking costs incurred for the automated clearinghouse debit
transaction shall be paid by the state.
   (d) "Automated clearinghouse credit" means an automated
clearinghouse transaction in which the person through his or her own
bank originates an entry crediting the state's bank account and
debiting his or her own bank account. Banking costs incurred for the
automated clearinghouse credit transaction charged to the state shall
be paid by the person originating the credit.
   (e) "Fedwire transfer" means any transaction originated by a
person and utilizing the national electronic payment system to
transfer funds through the federal reserve banks, when that person
debits his or her own bank account and credits the state's bank
account. Electronic funds transfers pursuant to Section 32260 may be
made by Fedwire only if payment cannot, for good cause, be made
according to subdivision (a), and the use of Fedwire is preapproved
by the board. Banking costs incurred for the Fedwire transaction
charged to the person and to the state shall be paid by the person
originating the transaction.


32263.  (a) Any return, declaration, statement, or other document
required to be made under this part that is filed using electronic
media shall be filed and authenticated pursuant to any method or form
the board may prescribe.
   (b) Notwithstanding any other law, any return, declaration,
statement, or other document otherwise required to be signed that is
filed by the taxpayer using electronic media in a form as required by
the board shall be deemed to be a signed, valid original document,
including upon reproduction to paper form by the board.
   (c) Electronic media includes, but is not limited to, computer
modem, magnetic media, optical disk, facsimile machine, or telephone.