6811-6815

REVENUE AND TAXATION CODE
SECTION 6811-6815




6811.  If any person liable for any amount under this part sells out
his business or stock of goods or quits the business, his successors
or assigns shall withhold sufficient of the purchase price to cover
such amount until the former owner produces a receipt from the board
showing that it has been paid or a certificate stating that no amount
is due.



6812.  (a) If the purchaser of a business or stock of goods fails to
withhold from the purchase price as required, he or she becomes
personally liable for the payment of the amount required to be
withheld by him or her to the extent of the purchase price, valued in
money.
   (b) (1) Within 60 days after the latest of the dates specified in
paragraph (2), the board shall either issue the certificate or mail
notice, to the purchaser at his or her address as it appears on the
records of the board, of the amount that must be paid as a condition
of issuing the certificate.
   (2) For purposes of paragraph (1), the latest of the following
dates shall apply:
   (A) The date the board receives a written request from the
purchaser for a certificate.
   (B) The date of the sale of the business or stock of goods.
   (C) The date the former owner's records are made available for
audit.
   (c) Failure of the board to mail the notice referred to in
subdivision (b) will release the purchaser from any further
obligation to withhold from the purchase price as above provided. The
last date upon which the obligation of the successor may be enforced
shall be not later than three years after the date the board is
notified of the purchase of the business or stock of goods.



6813.  The certificate may be issued after the payment of all
amounts due under this part, according to the records of the board as
of the date of the certificate, or after the payment of the amounts
is secured to the satisfaction of the board. Such security is not
subject to the limitations contained in Section 6701.




6814.  (a) The obligation of the successor shall be enforced by
serving a notice of successor liability on the person. The notice
shall be served in the manner prescribed for service of a notice of a
deficiency determination, not later than three years after the date
the board is notified of the purchase of the business or stock of
goods. The successor may petition for reconsideration in the manner
provided in Article 5 (commencing with Section 6561) of Chapter 5 of
this part. The notice shall become final and the amount due and
payable in the manner provided in that article except that no
additional penalty shall apply if not paid when due and payable. The
provisions of this chapter with respect to the collection of any
amount required to be paid under this part shall apply when the
notice becomes final.
   (b) (1) If the board finds that a successor's failure to withhold
a sufficient amount of the purchase price to cover the amount owed by
the former owner is due to reasonable cause and circumstances beyond
the successor's control, and occurred notwithstanding the exercise
of ordinary care and in the absence of willful neglect, the successor
may be relieved of any penalty included in the notice of successor
liability.
   (2) Any successor 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.




6815.  If at the time a business is discontinued the board holds
security pursuant to Section 6701 in the form of cash, government
bonds, or insured deposits in banks or savings and loan institutions,
such security when applied to the account of the taxpayer shall be
deemed to be a payment on account of any liability of the taxpayer to
the board on the date the business is discontinued.