§ 19141.2. — 19141.2. (Amended by Stats. 2000, Ch. 862, Sec. 21.)

California § 19141.2.

• Jurisdiction: California
• Code RTC: Revenue and Taxation Code - RTC
• Div. 2.: DIVISION 2. OTHER TAXES
• Part 10.2.: PART 10.2. ADMINISTRATION OF FRANCHISE AND INCOME TAX LAWS
• Ch. 4.: CHAPTER 4. Payments and Assessments
• Art. 7.: ARTICLE 7. Penalties and Additions to Tax

Text

(a)
Section 6038 of the Internal Revenue Code, relating to information with respect to certain foreign corporations, shall apply, except as otherwise provided.
(b)
Section 6038(a) is modified as follows:
(1)
The information required to be filed with the Franchise Tax Board under this section shall be a copy of the information required to be filed with the Internal Revenue Service.
(2)
The term “United States person,” as defined in Section 7701(a)(30) of the Internal Revenue Code, shall be limited to a domestic corporation, as defined in Section 7701(a) of the Internal Revenue Code, or a bank, as defined in Section 23039, that is subject to the tax imposed under Chapter 2 (commencing with Section 23101), Chapter 2.5 (commencing with Section 23400), or Chapter 3 (commencing with Section 23501), of Part 11.
(c)
(1)
Unless it is shown that the failure is due to reasonable cause and not due to willful neglect, a penalty shall be imposed under this part for failure to furnish information and that penalty shall be determined in accordance with Section 6038 of the Internal Revenue Code, except as otherwise provided.
(A)
Section 6038(b) of the Internal Revenue Code shall be modified
by substituting “$1,000” for “$10,000” in each place it appears.
(B)
Section 6038(b)(2) of the Internal Revenue Code shall be modified by substituting “$24,000” for “$50,000.”
(2)
No penalty shall be imposed under paragraph (1) if the copy of the information required to be filed with the Internal Revenue Service was not attached to the taxpayer’s return as originally filed but the taxpayer does both of the following:
(A)
Furnishes the copy of the information required to be filed with the Internal Revenue Service either upon its own initiative or within 90 days of notification by the Franchise Tax Board of the requirements of this section.
(B)
Agrees to attach a copy of the information required to be filed with the Internal Revenue Service to the
taxpayer’s original return filed for subsequent taxable years.
(3)
All or any portion of the penalty imposed under paragraph (1) may be waived by the Franchise Tax Board when the taxpayer has entered into a voluntary disclosure agreement under Article 8 (commencing with Section 19191) of Chapter 4.
(4)
The penalty imposed under this subdivision shall not apply to returns required to be filed for taxable years beginning before January 1, 1998.
(d)
This section shall apply to returns required to be filed for taxable years beginning on or after January 1, 1997.

Legislative History

Amended by Stats. 2000, Ch. 862, Sec. 21. Effective January 1, 2001.