Franchise Tax Board: administration: penalties: legal holiday.

The Personal Income Tax Law and the Corporation Tax Law establish specified dates for the filing of tax returns, and provide that if the last day for filing a return falls on a Saturday, Sunday, or other legal holiday, returns may be filed and payments made on the following day without penalty. This bill would conform to federal income tax law regarding the definition of a legal holiday for the purposes of the Personal Income Tax Law and the Corporation Tax Law. The Corporation Tax Law imposes taxes measured by income at a specified rate. Existing law provides that whenever any foreign corporation that fails to qualify to do business in this state or whose powers, rights, and privileges have been forfeited, or any domestic corporation that has been suspended, and that is doing business in this state, fails to make and file a return, as provided, the Franchise Tax Board shall impose a penalty of $2,000 per taxable year, as specified. This bill would also make this penalty applicable to a foreign limited liability company that fails to qualify to do business in this state or whose powers, rights, and privileges have been forfeited and to a domestic limited liability company that has been suspended and that is doing business in this state, as specified.