6481-6488

REVENUE AND TAXATION CODE
SECTION 6481-6488




6481.  If the board is not satisfied with the return or returns of
the tax or the amount of tax, or other amount, required to be paid to
the state by any person, it may compute and determine the amount
required to be paid upon the basis of the facts contained in the
return or returns or upon the basis of any information within its
possession or that may come into its possession. One or more
deficiency determinations may be made of the amount due for one or
for more than one period. When a business is discontinued a
determination may be made at any time thereafter, within the periods
specified in Section 6487, as to liability arising out of that
business, irrespective of whether the determination is issued prior
to the due date of the liability as otherwise specified in this part.



6482.  The amount of the determination, exclusive of penalties,
shall bear interest at the modified adjusted rate per month, or
fraction thereof, established pursuant to Section 6591.5, from the
last day of the month following the quarterly period for which the
amount or any portion thereof should have been returned until the
date of payment.



6483.  In making a determination the board may offset overpayments
for a period or periods, together with interest on the overpayments,
against underpayments for another period or periods, against
penalties, and against the interest on the underpayments. The
interest on underpayments and overpayments shall be computed in the
manner set forth in Sections 6591 and 6907.



6484.  If any part of the deficiency for which a deficiency
determination is made is due to negligence or intentional disregard
of this part or authorized rules and regulations, a penalty of 10 per
cent of the amount of the determination shall be added thereto.




6485.  If any part of the deficiency for which a deficiency
determination is made is due to fraud or an intent to evade this part
or authorized rules and regulations, a penalty of 25 per cent of the
amount of the determination shall be added thereto.




6485.1.  Any purchaser of a vehicle, vessel, or aircraft who
registers it outside the State of California for the purpose of
evading the payment of taxes due under this part shall be liable for
a penalty of 50 percent of any tax determined to be due on the sales
price of the vehicle, vessel, or aircraft.



6486.  The board shall give to the retailer or person storing,
using, or consuming tangible personal property written notice of its
determination. The notice shall be placed in a sealed envelope, with
postage paid, addressed to the retailer or person storing, using, or
consuming tangible personal property at his or her address as it
appears in the records of the board. The giving of notice shall be
deemed complete at the time of the deposit of the notice in the
United States Post Office, or a mailbox, sub-post office, substation
or mail chute or other facility regularly maintained or provided by
the United States Postal Service, without extension of time for any
reason. In lieu of mailing, a notice may be served personally by
delivering it to the person to be served and service is complete at
the time of delivery. Personal service to a corporation may be made
by delivery of a notice to any person designated in the Code of Civil
Procedure to be served for the corporation with summons and
complaint in a civil action.


6487.  (a) For taxpayers filing returns, other than a return filed
pursuant to Section 6452.1, on other than an annual basis, except in
the case of fraud, intent to evade this part or authorized rules and
regulations, or failure to make a return, every notice of a
deficiency determination shall be mailed within three years after the
last day of the calendar month following the quarterly period for
which the amount is proposed to be determined or within three years
after the return is filed, whichever period expires the later. In the
case of failure to make a return, every notice of determination
shall be mailed within eight years after the last day of the calendar
month following the quarterly period for which the amount is
proposed to be determined.
   (b) For taxpayers filing returns on an annual basis, except in the
case of fraud, intent to evade this part or authorized rules and
regulations, or failure to make a return, every notice of a
deficiency determination shall be mailed within three years after the
last day of the calendar month following the one-year period for
which the amount is proposed to be determined or within three years
after the return is filed, whichever period expires the later. In the
case of failure to make a return, every notice of determination
shall be mailed within eight years after the last day of the calendar
month following the one-year period for which the amount is proposed
to be determined.
   (c) The limitation specified in this section does not apply in
case of a sales tax proposed to be determined with respect to sales
of property for the storage, use, or other consumption of which
notice of a deficiency determination has been or is given pursuant to
subdivision (a) or (b) or pursuant to Section 6486, 6515, or 6536.
The limitation specified in this section does not apply in case of an
amount of use tax proposed to be determined with respect to storage,
use, or other consumption of property for the sale of which notice
of a deficiency determination has been or is given pursuant to
subdivision (a) or (b) or pursuant to Section 6486, 6515, or 6536.



6487.05.  (a) Notwithstanding Section 6487, the period during which
a deficiency determination may be mailed to a qualifying retailer is
limited to three years after the last day of the calendar month
following the quarterly period for which the amount is proposed to be
determined. For purposes of this section, a "qualifying retailer" is
a retailer that meets all of the following conditions:
   (1) The retailer is located outside this state, and has not
previously registered with the board.
   (2) The retailer is engaged in business in this state, as defined
in Section 6203.
   (3) The retailer voluntarily registers with the board.
   (4) The retailer has not been previously contacted by the board or
its agents regarding the provisions of Section 6203.
   (5) As determined by the board, the retailer's failure to file a
return or failure to report or pay the tax or amount due required by
law was due to reasonable cause and was not a result of negligence or
intentional disregard of the law, or because of fraud or an intent
to evade the provisions of this part.
   (b) If the board or its designee finds that the retailer's failure
to make a timely return or payment is due to reasonable cause and
circumstances beyond the retailer's control, and occurred
notwithstanding the exercise of ordinary care and the absence of
willful neglect, the retailer shall be relieved of the penalties
imposed pursuant to this part. Any retailer seeking relief of penalty
shall file a statement under penalty of perjury setting forth the
facts upon which he or she bases his or her claim for relief.



6487.06.  (a) Notwithstanding Section 6487, the period during which
a deficiency determination may be mailed to a qualifying purchaser is
limited to three years after the last day of the calendar month
following the quarterly period for which the amount is proposed to be
determined.
   (b) For purposes of this section, a "qualifying purchaser" is a
person that voluntarily files an individual use tax return for
tangible personal property that is purchased from a retailer outside
of this state for storage, use, or other consumption in this state,
and that meets all of the following conditions:
   (1) The purchaser resides or is located within this state and has
not previously done any of the following:
   (A) Registered with the State Board of Equalization.
   (B) Filed an individual use tax return with the State Board of
Equalization.
   (C) Reported an amount on his or her individual California income
tax return.
   (2) The purchaser is not engaged in business in this state as a
retailer, as defined in Section 6015.
   (3) The purchaser has not been contacted by the State Board of
Equalization regarding failure to report the use tax imposed by
Section 6202.
   (4) The State Board of Equalization has made a determination that
the purchaser's failure to file an individual use tax return or to
otherwise report or pay the use tax imposed by Section 6202 was due
to reasonable cause and was not caused by reason of negligence,
intentional disregard of the law, or by an intent to evade the taxes
imposed by this part.
   (c) If the State Board of Equalization makes a determination that
the purchaser's failure to timely report or remit the taxes imposed
by this part is due to reasonable cause or due to circumstances
beyond the purchaser's control, the purchaser may be relieved of any
penalties imposed by this part. Any purchaser seeking relief from
penalties imposed by this part shall file a statement, signed under
penalty of perjury, setting forth the facts that form the basis for
the claim for relief.
   (d) This section shall not apply to purchases of vehicles,
vessels, or aircraft as defined in Article 1 (commencing with Section
6271) of Chapter 3.5.



6487.1.  In the case of a deficiency arising under this part during
the lifetime of a decedent, a notice of deficiency determination
shall be mailed within four months after written request therefor, in
the form required by the board, by the fiduciary of the estate or
trust or by any other person liable for the tax or any portion
thereof.



6487.2.  (a) A notice of determination issued pursuant to Section
6486, 6515, or 6536 to an individual who was a general partner, as
shown on the board's records, and who, prior to the period covered by
the determination, withdrew from the partnership, causing a change
in ownership, and failed to notify the board, shall be mailed within
four years after the last day of the calendar month following the
quarterly period in which the change of ownership occurred.
   (b) An individual who was a general partner, as shown on the board'
s records, who withdraws from a partnership without notifying the
board of the change in ownership, shall not be liable for any unpaid,
self-assessed liability of the partnership that becomes due at least
three years after the last day of the calendar month following the
quarterly period in which the change in ownership occurred.
   (c) Subdivisions (a) and (b) shall not apply to either of the
following:
   (1) Cases of fraud or intent to evade this part or other
administrative or interpretive regulations.
   (2) Any partners who retain an ownership interest in a corporation
that is a successor to the partnership.
   (d) For purposes of this part, change in ownership means that a
new "person," as defined in Section 6005, is created by the action of
the former owner by means of a sale, an incorporation, an addition
or elimination of one or more partners, or the termination of a
spouse's ownership or community property interest due to legal
separation or divorce.
   (e) For purposes of this section, "individual" includes only
natural persons.


6487.3.  (a) (1) For persons that elect to report qualified use tax
in accordance with Section 6452.1, except in the case of fraud,
intent to avoid this part or authorized rules and regulations issued
by the board, or the gross understatement of qualified use taxes,
every notice of a deficiency determination with respect to the
qualified use tax shall be mailed within three years after the last
day for which an acceptable tax return is due or filed, whichever
occurs later.
   (2) In the case of a gross understatement of qualified use tax,
every notice of a deficiency determination with respect to the
qualified use tax shall be mailed within six years after the last day
for which an acceptable tax return is due or filed, whichever occurs
later.
   (3) For purposes of this subdivision a "gross understatement of
qualified use tax" is a deficiency that is in excess of 25 percent of
the amount of qualified use tax reported on a person's acceptable
tax return. In the case of married individuals filing separate
California personal income tax returns, the total amount of qualified
use tax reported will be considered in determining whether there is
a gross understatement of qualified use tax.
   (4) For purposes of this section "acceptable tax return" means a
timely filed original return that is filed pursuant to Article 1
(commencing with Section 18501), Article 2 (commencing with Section
18601), Section 18633, Section 18633.5 of Chapter 2 (commencing with
Section 18501) of Part 10.2, or Article 3 (commencing with Section
23771) of Chapter 4 of Part 11.
   (b) This section applies to reporting of purchases of tangible
personal property made on or after January 1, 2010, in taxable years
beginning on or after January 1, 2010.



6488.  If before the expiration of the time prescribed in Section
6487 for the mailing of a notice of deficiency determination the
taxpayer has consented in writing to the mailing of the notice after
such time, the notice may be mailed at any time prior to the
expiration of the period agreed upon. The period so agreed upon may
be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.