Income taxes: voluntary disclosure agreements.

Existing income and corporation tax laws authorize the Franchise Tax Board to enter into voluntary disclosure agreements with specified entities. This bill would, for any agreement entered into on or after January 1, 2011, require the agreement to specify that the board may extend the time for filing returns and paying amounts due to the later of 2 specified dates. This bill would provide that no additions to tax imposed by certain provisions is required on an underpayment of estimated taxes, as specified. Existing law provides that a voluntary disclosure agreement is null and void in the event that the board finds that certain circumstances exist, including where the entity fails to pay an installment payment due within a prescribed time. This bill would provide that an applicant that has entered into a voluntary disclosure agreement who is applying for an installment payment arrangement has a specified time period to pay in full any tax, fee, penalty, or interest due.