Section 19084 Of Article 5. Jeopardy Assessments From California Revenue And Taxation Code >> Division 2. >> Part 10.2. >> Chapter 4. >> Article 5.
19084
. (a) (1) (A) Unless the Chief Counsel of the Franchise Tax
Board (or the chief counsel's delegate) personally approves (in
writing) the assessment or levy, no assessment shall be made under
this article and no levy shall be issued less than 30 days after
either of the following:
(i) A notice and demand is mailed or issued for payment pursuant
to Section 19081.
(ii) Notice and demand for a return and payment is mailed or
issued pursuant to Section 19082.
(B) Within five days after the day on which either a notice and
demand for payment is mailed or issued pursuant to Section 19081, or
notice and demand for a return and payment is mailed or issued
pursuant to Section 19082, the Franchise Tax Board shall mail or
issue the taxpayer a written statement of the information upon which
the Franchise Tax Board relies in issuing that notice and demand.
(2) Within 30 days after the day on which the taxpayer is
furnished the written statement described in paragraph (1), or within
30 days after the last day of the period within which the statement
is required to be furnished, the taxpayer may petition the Franchise
Tax Board to review whether its finding pursuant to Section 19081 or
19082 is reasonable under the circumstances, specifying the grounds
on which the petition is based. The filing of a petition for review
shall not operate to stay collection. Collection may be stayed only
as provided in Section 19083. A petition filed pursuant to this
paragraph shall also be considered a protest filed pursuant to
Section 19041 against the proposed additional tax.
(3) If a petition for review under paragraph (2) is not made
within the 30-day period set forth in that paragraph, the finding of
the Franchise Tax Board pursuant to Section 19081 or 19082 is final.
(4) After a petition for review is filed under paragraph (2), the
Franchise Tax Board shall determine whether or not the issuance of
notice and demand under Section 19081 or 19082 is reasonable under
the circumstances. In making this determination, the Franchise Tax
Board shall grant the taxpayer or authorized representative an oral
hearing if the taxpayer has so requested in the petition. Chapter 4.5
(commencing with Section 11400) of Part 1 of Division 3 of Title 2
of the Government Code does not apply to a hearing under this
paragraph. The burden of proof with respect to whether a jeopardy
exists as to collection or an assessment is upon the Franchise Tax
Board.
(5) The Franchise Tax Board shall make the determination under
paragraph (4) within 90 days of the filing of the petition for review
unless the taxpayer requests, in writing, additional time.
(6) In making the determination required by paragraph (4), the
Franchise Tax Board shall consider all relevant factors, including,
but not limited to, the likelihood that collection will be
jeopardized, the assets of the taxpayer, and the amount of the
assessment as it relates to whether jeopardy status exists. The
burden of proof as to the amount of the assessment for purposes of
determining jeopardy status is upon the taxpayer.
(b) (1) Within 60 days after the earlier of the following days,
the taxpayer may appeal the determination to the State Board of
Equalization in the manner provided in Section 19085:
(A) The day the Franchise Tax Board notifies the taxpayer of the
determination described in paragraph (4) of subdivision (a).
(B) One day after the time period prescribed by paragraph (5) of
subdivision (a) for the Franchise Tax Board to make its
determination.
(2) If an appeal is not filed before the expiration of the time
periods, the Franchise Tax Board's determination is final. Filing of
an appeal shall not operate to stay collection. Collection may be
stayed only as provided in Section 19083.
(3) Within 60 days after an appeal is filed under paragraph (1),
the board shall determine whether the issuance of notice and demand
under Section 19081 or 19082 is reasonable under the circumstances.
The burden of proof with respect to whether a jeopardy exists as to
collection or an assessment is upon the Franchise Tax Board.
(4) If the board determines that a jeopardy status does not apply
to all or part of the assessment, the board may modify the amount of
the assessment to which the jeopardy attaches. If the board does not
act within the time period provided in paragraph (3) as modified by
paragraph (6), the board will be deemed to have denied the taxpayer's
appeal.
(5) In making the determination required by paragraph (3), the
board shall consider all relevant factors, including, but not limited
to, the likelihood that collection will be jeopardized, the assets
of the taxpayer, and the amount of the assessment as it relates to
whether jeopardy status exists. The burden of proof as to the amount
of the assessment for purposes of determining jeopardy status is upon
the taxpayer.
(6) If either party requests an extension of the 60-day period set
forth in paragraph (3) and establishes reasonable grounds why the
extension should be granted, the board may grant an extension of not
more than 30 additional days.
(c) (1) Within 60 days after the earlier of the following days,
either party may bring a civil action against the other in superior
court for a judicial determination as to whether or not the issuance
of the notice and demand under Section 19081 or 19082 is reasonable
under the circumstances:
(A) The day the board notifies the taxpayer of its determination
described in paragraph (3), as modified by paragraph (6), of
subdivision (b).
(B) If the board fails to make a timely determination, then one
day after the time prescribed for the board to make its
determination.
(2) If a civil action under this subdivision is not commenced
within the 60-day period set forth in paragraph (1), the board's
determination is final. The filing of the civil action shall not
operate to stay collection. Collection shall be stayed only as
provided by Section 19083.
(3) Within 60 days after proper service is made, the superior
court shall determine whether the issuance of notice and demand under
Section 19081 or 19082 is reasonable under the circumstances. The
burden of proof with respect to whether a jeopardy exists as to
collection or an assessment is upon the Franchise Tax Board.
(4) If the court determines that a jeopardy status does not apply
to all or part of the assessment, the court may modify the amount of
the assessment to which the jeopardy attaches.
(5) In making the determination required by paragraph (3), the
superior court shall consider all relevant factors, including, but
not limited to, the likelihood that collection will be jeopardized,
the assets of the taxpayer, and the amount of the assessment as it
relates to whether jeopardy status exists. The burden of proof as to
the amount of the assessment for purposes of determining jeopardy
status is upon the taxpayer.
(6) If either party in the action requests an extension of the
60-day period set forth in paragraph (3) of subdivision (c) and
establishes reasonable grounds why the extension should be granted,
the superior court may grant an extension of not more than 30
additional days.
(7) Actions filed pursuant to this section shall be filed in the
Superior Court of the County of Los Angeles, the City and County of
San Francisco, the County of San Diego, or the County of Sacramento.
Sections 19387 and 19389 shall apply to those actions.
(8) The determination made by a superior court under this section
shall be final and conclusive and shall not be reviewed by any other
court.
(d) The amendments made by the act adding this subdivision are
operative for taxes assessed and levies made after the effective date
of the act adding this subdivision.