Franchise Tax Board: Taxpayers' Rights Advocate.

The Katz-Harris Taxpayers' Bill of Rights Act establishes the position of Taxpayers' Rights Advocate and provides specified protections for taxpayers for purposes of, among other things, determining their correct tax liability. Existing law, until January 1, 2016, authorizes the Taxpayers' Rights Advocate to abate penalties, fees, additions to tax, or interest attributable to error of or unreasonable delay caused by the Franchise Tax Board, as specified. Existing law requires any relief granted in which the total reduction exceeds $500, as adjusted, to be submitted to the executive officer of the board for concurrence, and limits the total relief granted to $7,500, as adjusted. Existing law authorizes relief to be granted only if no significant aspect of the board's error or delay is attributed to the taxpayer, as provided. This bill, on and after January 1, 2016, would instead require the Taxpayers' Rights Advocate, in coordination with the Chief Counsel of the Franchise Tax Board, to abate penalties, fees, additions to tax, or interest attributable to error of or unreasonable delay caused by the Franchise Tax Board, increase the limit on the amount of relief that may be granted from $7,500 to $10,000, revise the adjustment provision relating to that amount, and specify the retention period for records of relief granted by the chief counsel. The bill would require the advocate and the board to provide relief to the taxpayer only if no significant aspect of the board's error or delay is attributed to the taxpayer and would require the board itself to be notified whenever relief is granted.