Article 1. Administration of California Revenue And Taxation Code >> Division 2. >> Part 14. >> Chapter 9. >> Article 1.

The board shall enforce the provisions of this part and may prescribe, adopt, and enforce rules and regulations relating to the administration and enforcement of this part.

In addition to any other reports required under this part, the board may, by rule and otherwise, require additional, other, or supplemental reports from alcoholic beverage licensees, common and private carriers, and other persons and prescribe the form, including verification, of the information to be given on, and the times for filing of, such additional, other, or supplemental reports. The failure or refusal of any person to render the reports required under this section is a misdemeanor.

For all purposes of this part, when records are maintained in liters the equivalent measure in wine gallons shall be determined by multiplying total liters by a conversion factor of 0.26417 for wine, and by a conversion factor of 0.264172 for distilled spirits.

The board may make such examinations of the books and records of any person selling, manufacturing, warehousing, or transporting alcoholic beverages as it may deem necessary in carrying out the provisions of this part.

The board may employ accountants, auditors, investigators and other expert and clerical assistance necessary to enforce its powers and perform its duties under this part.

It is unlawful for the board or any person having an administrative position under this part to make known in any manner whatever any information set forth or disclosed in any report from any winegrower pursuant to this part regarding the names of the purchasers and the amounts of individual sales of wines which the winegrower has exported from this state, or to permit the portion of any report or copy thereof which contains such information to be seen or examined by any person. This section does not prohibit the publication by the board of any winegrower's total receipts from the export of wines from this state. Nothing in this section shall prevent the board from exchanging with officials of other states information concerning the interstate shipments of wine.

(a) Except as otherwise provided by law, any person who is engaged in the business of preparing, or providing services in connection with the preparation of, returns under Chapter 6 of this part, or any person who for compensation prepares any such return for any other person, and who knowingly or recklessly does either of the following, shall be guilty of a misdemeanor, and, upon conviction thereof, shall be fined not more than one thousand dollars ($1,000) or imprisoned no more than one year, or both, together with the costs of prosecution:
  (1) Discloses any information furnished to him or her for, or in connection with, the preparation of the return.
  (2) Uses that information for any purpose other than to prepare, or assist in preparing, the return.
  (b) Subdivision (a) shall not apply to disclosure of information if that disclosure is made pursuant to the person's consent or pursuant to a subpoena, court order, or other compulsory legal process.

A certificate by the board or an employee of the board stating that a notice required by this part was given by mailing or personal service shall be prima facie evidence in any administrative or judicial proceeding of the fact and regularity of the mailing or personal service in accordance with any requirement of this part for the giving of a notice. Unless otherwise specifically required, any notice provided by this part to be mailed or served may be given either by mailing or by personal service in the manner provided for giving notice of a deficiency determination.

Notwithstanding Section 15619 of the Government Code, all information contained in the Vendor's Report of Beer Shipments into California may be made public.

(a) The board shall determine which taxpayer's accounts are eligible for the managed audit program in a manner that is consistent with the efficient use of its auditing resources and the maximum effectiveness of the program.
  (b) A taxpayer is not required to participate in the managed audit program.

A taxpayer's account is eligible for the managed audit program only if the taxpayer meets all of the following criteria:
  (a) The taxpayer's business involves few or no statutory exemptions.
  (b) The taxpayer's business involves a single or a small number of clearly defined taxability issues.
  (c) The taxpayer is taxed pursuant to this part and agrees to participate in the managed audit program.
  (d) The taxpayer has the resources to comply with the managed audit instructions provided by the board.

(a) If the board selects a taxpayer's account for a managed audit, all of the following apply:
  (1) The board shall identify all of the following:
  (A) The audit period covered by the managed audit.
  (B) The types of transactions covered by the managed audit.
  (C) The specific procedures that the taxpayer is to follow in determining any liability.
  (D) The records to be reviewed by the taxpayer.
  (E) The manner in which the types of transactions are to be scheduled for review.
  (F) The time period for completion of the managed audit.
  (G) The time period for the payment of the liability and interest.
  (H) Any other criteria that the board may require for completion of the managed audit.
  (2) The taxpayer shall:
  (A) Examine its books and records to determine if it has any unreported tax liability for the audit period.
  (B) Make available to the board for verification all computations and books and records examined pursuant to subparagraph (A).
  (b) The information provided by the taxpayer pursuant to paragraph (2) of subdivision (a) is the same information that is required for the completion of any other audit that the board may conduct.

Nothing in this article limits the board's authority to examine the books and records of a taxpayer under Section 32453.

Upon completion of the managed audit and verification by the board, interest on any unpaid liability shall be computed at one-half the rate that would otherwise be imposed for liabilities covered by the audit period. Payment of the liabilities and interest shall be made within the time period specified by the board. If the requirements for the managed audit are not satisfied, the board may proceed to examine the records of the taxpayer in a manner to be determined by the board under law.