Sales and use taxes: income taxes: written advice.

Under the Sales and Use Tax Law, the California Department of Tax and Fee Administration is authorized to relieve a person from the payment of sales and use taxes, penalties, and interest if the department finds that a person's failure to make a timely return or payment is due to that person's reasonable reliance on written advice from the department, as specified. This bill would require the department to confirm receipt of a request by a person for written advice from the department other than presentation of a taxpayer's books and records for audit by sending a letter or email within 30 days from the date of receipt of the request. The bill would require the department to provide a response within 180 days from the date the request by a person for written advice from the department is received by the department, except as specified. The bill would make the changes to the written advice provisions apply to written requests received by the department on or after January 1, 2021. Under existing law, the Katz-Harris Taxpayers' Bill of Rights Act, the Franchise Tax Board is authorized to relieve a person from the payment of taxes under the Personal Income Tax Law and the Corporation Tax Law, interest, additions to those taxes, or penalties if the Franchise Tax Board finds that a person's failure to make a timely return or payment is due to that person's reasonable reliance on written advice from the board or written advice of a legal ruling by the Chief Counsel of the Franchise Tax Board, as specified. Existing law requires chief counsel rulings to be issued as provided in published guidelines. This bill would require the chief counsel to confirm receipt of a request by a person fora chief counsel ruling by sending a letter or email within 30 days of the date of receipt of the request for a chief counsel ruling. The bill would require the chief counsel to provide a response within 180 days from the date the request by a person for a chief counsel ruling is received. Under the bill, all published guidelines issued pursuant to the chief counsel rulings provisions in effect on December 31, 2020, would remain in effect and be fully enforceable unless and until modified or superseded by the board. The bill would make the changes to the chief counsel rulings provisions apply to a written request for a chief counsel ruling received on or after January 1, 2021.