AB 525: State Board of Equalization: California Department of Tax and Fee Administration: offer in compromise: extension.

The Sales and Use Tax Law, Use Fuel Tax Law, Cigarette and Tobacco Products Tax Law, Alcoholic Beverage Tax Law, Emergency Telephone Users Surcharge Act, Oil Spill Response, Prevention, and Administration Fees Law, Underground Storage Tank Maintenance Fee Law, Fee Collection Procedures Law, and Diesel Fuel Tax Law allow the State Board of Equalization or the California Department of Tax and Fee Administration where the State Board of Equalizations duties, powers, and responsibilities have been transferred to the department to accept an offer in compromise on a final tax liability, as defined, imposed under or in accordance with those laws if the liabilities are generated from a business that has been discontinued or transferred, where the taxpayer or feepayer no longer has a controlling interest or association with a similar business as the transferred or discontinued business. Before January 1, 2018, those laws allow the State Board of Equalization or department to accept an offer in compromise on a qualified final tax liability, as defined, regardless of whether the business has been discontinued or transferred or whether the taxpayer or feepayer has a controlling interest or association with a similar business as the transferred or discontinued business. Under these laws, a taxpayer or feepayer would be guilty of a felony if the taxpayer or feepayer conceals specified property or receives, withholds, destroys, mutilates, or falsifies specified items or makes a false statement related to the offer in compromise, as specified.

This bill would extend the repeal date for the above provisions regarding an offer in compromise for a qualified final tax liability to January 1, 2023. The bill, by extending the repeal date, would expand the scope of an existing crime and, thus, impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.