Bill Requires California Tax Agency Response to Advice Requests
Bloomberg Tax Capitol

Current California law contains no deadlines or required written responses from the tax agencies that taxpayers can rely on for compliance and certainty, according to state Assembly lawmakers. Above: California State Capitol building in Sacramento, Calif. on March 30, 2017. Photographer: David Paul Morris/Bloomberg

 

Current California law contains no deadlines or required written responses from the tax agencies that taxpayers can rely on for compliance and certainty, according to state Assembly lawmakers.

June 8, 2020, 3:15 PM

California’s tax agencies would be required to acknowledge requests for written advice and respond within 180 days under a bill that passed its first vote with the state Assembly Monday.

A.B. 2528 by Assemblymen Tyler Diep (R) and Mike Gipson (D) now moves to the Senate after winning a 68-0 vote. Current law contains no deadlines or required written responses from the tax agencies that taxpayers can rely on for compliance and certainty, according to the authors.

The Franchise Tax Board and Department of Tax and Fee Administration would be required to send letters to taxpayers within 30 days to confirm receipt of a request for advice or chief counsel ruling.

The agencies, which oversee income tax and sales and use tax, would have 180 days to respond to the requests.

The new deadlines would apply to written requests for advice the agencies receive after Jan. 1, 2021, but topics that are being litigated or that concern a taxpayer that is under audit would be exempt.

To contact the reporter on this story: Laura Mahoney in Sacramento, Calif. at lmahoney@bloomberglaw.com

To contact the editors responsible for this story: Jeff Harrington at jharrington@bloombergtax.com; Kathy Larsen at klarsen@bloombergtax.com