SECTIONS 7659-7659.8 - California Statutes

REVENUE AND TAXATION CODE

SECTION 7659-7659.8

7659. The provisions of this article apply to suppliers required to
file a supplier's return pursuant to Section 7651.

7659.1. Upon written notification by the board, any person whose
estimated tax liability under this part averages nine hundred
thousand dollars ($900,000) or more per month, as determined by the
board, shall, without regard to the tax in any one month, make a
prepayment as prescribed in this section. The prepayment requirement
may be satisfied by making a prepayment of an amount not less than 95
percent of the tax liability for the month to which the prepayment
applies or a prepayment not less than 95 percent of the amount of the
tax liability reported for the previous month. Prepayments shall be
made for the monthly periods designated by the board and during each
succeeding monthly period until further notification by the board in
writing.

7659.2. Except in the case of a person required to remit amounts
due in accordance with Article 2.5 (commencing with Section 7659.9),
for purposes of Section 7659.1, each prepayment shall be accompanied
by a report of the amount of that prepayment in a form prescribed by
the board and shall be filed with the board on or before the 15th day
following each monthly period together with a remittance payable to
the Controller of the amount due.

7659.3. The amount of the prepayment shall constitute a credit
against the amount of the taxes due and payable for the monthly
period for which the prepayment was made and for each succeeding
monthly prepayment or period until the credit is fully utilized.

7659.4. In determining whether a person's estimated tax liability
averages nine hundred thousand dollars ($900,000) or more per month,
the board may consider tax returns filed pursuant to this part as
well as any information in the board's possession or which may come
into its possession.

7659.5. Any person required to make a prepayment pursuant to
Section 7659.1 who fails to make a timely prepayment but makes that
prepayment before the last day of the month following the monthly
period for which the prepayment was due, shall also pay a penalty of
6 percent of the amount of prepayment.

7659.6. Any person required to make a prepayment pursuant to
Section 7659.1 who fails to make a prepayment before the last day of
the month following the monthly period for which the prepayment
became due and who files a timely return and payment for the monthly
period for which the prepayment became due shall pay a penalty of 6
percent of the amount equal to 95 percent of the tax liability for
the monthly period for which the required prepayment was not made.

7659.7. (a) If the failure to make a prepayment as described in
Section 7659.6 is due to negligence or intentional disregard of this
part or authorized rules and regulations, the penalty shall be 10
percent, instead of 6 percent.
(b) If any part of a deficiency in prepayment is due to negligence
or intentional disregard of this part or authorized rules and
regulations, a penalty of 10 percent of the deficiency shall be paid.
(c) The provisions of this section shall not apply to amounts
subject to the provisions of Sections 7655, 7660, 7662, 7672, 7673,
and 7726.
(d) The 10-percent negligence penalty shall become due and payable
and shall be ascertained and determined in the same manner as the
deficiency determination under Article 4 (commencing with Section
7670) of this chapter. The provisions of Article 6 (commencing with
Section 7710) of this chapter shall be applicable with respect to the
finality of the determination and the right of the supplier to
petition for redetermination.

7659.8. Notification by the board, provided for in Section 7659.1,
may be served personally or by mail in the manner prescribed in
Section 7671 for service of notice of a deficiency determination.