Section 19132 Of Article 7. Penalties And Additions To Tax From California Revenue And Taxation Code >> Division 2. >> Part 10.2. >> Chapter 4. >> Article 7.
19132
. (a) (1) Unless it is shown that the failure is due to
reasonable cause and not due to willful neglect, a penalty computed
in accordance with paragraph (2) is hereby imposed in the case of
failure to pay any of the following:
(A) The amount shown as tax on any return on or before the date
prescribed for payment of that tax determined with regard to any
extension of time for payment.
(B) Any amount in respect of any tax required to be shown on a
return which is not so shown including an assessment made pursuant to
Section 19051 within 15 days of the date of the notice and demand
therefor.
(C) The amount required to be paid by Section 19021, if
applicable, that is not paid.
(D) The amount required to be paid by Section 17941 or 23091, if
applicable, that is not paid.
(E) The amount required to be paid by Section 17948 or 23097, if
applicable, that is not paid.
(2) The penalty imposed under paragraph (1) shall consist of both
of the following:
(A) Five percent of the total tax unpaid as defined in subdivision
(c).
(B) An amount computed at the rate of 0.5 percent per month of the
"remaining tax" as defined in subdivision (d) for each additional
month or fraction thereof not to exceed 40 months during which the
"remaining tax" is greater than zero.
(3) The aggregate amount of penalty imposed by this subdivision
shall not exceed 25 percent of the total unpaid tax and shall be due
and payable upon notice and demand by the Franchise Tax Board. The
tender of a check or money order does not constitute payment of the
tax for purposes of this section unless the check or money order is
paid on presentment.
(b) The penalty prescribed by subdivision (a) shall not be
assessed if, for the same taxable year, the sum of any penalties
imposed under Section 19131 relating to failure to file return and
Section 19133 relating to failure to file return after demand is
equal to or greater than the subdivision (a) penalty. In the event
the penalty imposed under subdivision (a) is greater than the sum of
any penalties imposed under Sections 19131 and 19133, the penalty
imposed under subdivision (a) shall be the amount which exceeds the
sum of any penalties imposed under Sections 19131 and 19133.
(c) For purposes of this section, total tax unpaid means the
amount of tax shown on the return reduced by both of the following:
(1) The amount of any part of the tax which is paid on or before
the date prescribed for payment of the tax.
(2) The amount of any credit against the tax which may be claimed
upon the return.
(d) For purposes of this section, "remaining tax" means total tax
unpaid reduced by the amount of any payment of the tax.
(e) If the amount required to be shown as a tax on a return is
less than the amount shown as tax on that return, subdivisions (a),
(c), and (d) shall be applied by substituting that lower amount.
(f) No interest shall accrue on the portion of the penalty
prescribed in subparagraph (B) of paragraph (2) of subdivision (a).
(g) The amendments made by the act adding this subdivision are
operative for notices issued on or after January 1, 1998.