Article 1. Administration of California Revenue And Taxation Code >> Division 2. >> Part 22. >> Chapter 6. >> 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.
The board may make such examinations of the books and
records of any taxpayer 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.
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.
Any information regarding hazardous wastes which is
available to the board shall be made available to the department.
(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 3
(commencing with Section 43151), 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) 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 or activities involve few or no
statutory exemptions.
(b) The taxpayer's business or activities involve a single or a
small number of clearly defined taxability or liability 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 or activities 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 or activities
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 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 43502.
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.