Section 19059 - Period of Limitation for Proposing Deficiency After Federal Changes(a) Section 18622, of the Revenue and Taxation Code, requires that a taxpayer report certain specified federal changes. Such notification shall be made by mailing to the Franchise Tax Board, Audit Section, P.O. Box 1673, Sacramento, CA 95812-1673, Attn: RAR/VOL, the original or a copy of the final determination or renegotiation agreement as well as any other data upon which such final determination or renegotiation agreement is claimed. If requested to do so the Franchise Tax Board will make a copy of any final determination or renegotiation agreement furnished to it, and return the taxpayer's copy to him. The notification must be given by the taxpayer regardless of whether he believes any modification of his tax liability will be required. However, a nonresident taxpayer shall give such notification, and shall file an amended return as required by subsection (b) of this regulation, only if the change, results of renegotiation or amended return relate to income taxable to a nonresident under Chapter 11 of the Personal Income Tax Law.
(b) A taxpayer who files an amended return with the United States Treasury Department shall also file, within 90 days thereafter, a similarly amended return with the Franchise Tax Board and shall pay the additional tax, if any, shown to be due thereon.(c) Within six months after receipt of any such notification of filing of an amended return, or at any time within four years if such notification is not given or amended return is not filed, the Franchise Tax Board will recompute the amount of tax and if it appears from such recomputation that an additional tax is due will issue an assessment, notwithstanding the limitations of time within which an assessment may otherwise be made.(d) The Franchise Tax Board is not required to accept as correct any modification in taxable income as herein above set forth but may conduct an independent investigation in regard thereto.(e) A final determination is an irrevocable determination or adjustment of a taxpayer's federal tax liability from which there exists no further right of appeal either administrative or judicial. For example:(1) a closing agreement made under Section 7121 of the Internal Revenue Code of 1986 finally and irrevocably adjusting and settling a taxpayer's tax liability.(2) The 90-day deficiency notice pursuant to Section 6213(a) of the Internal Revenue Code of 1986 is a final determination, unless a timely petition to redetermine the deficiency is filed in the Tax Court of the United States, in which event the judgment of the court of last resort affirming the deficiency, or the redetermination of the deficiency pursuant to a judgment of the court of last resort is the final determination. But the determination does not become final until the time for petitioning for a rehearing or appealing to a higher court has expired.(3) The assessment of a deficiency pursuant to a waiver filed under Section 6213(d) of the Internal Revenue Code of 1986 where no 90-day deficiency notice is issued.Cal. Code Regs. Tit. 18, § 19059
1. Renumbering and amendment of Section 18581-18601(c) to Section 18586.3 filed 8-19-82; effective thirtieth day thereafter (Register 82, No. 34).
2. Change without regulatory effect of subsections (a) and (e) pursuant to Section 100, Title 1, California Code of Regulations filed 12-8-89 (Register 90, No. 3).
3. Change without regulatory effect adding new article 3 (section 19059) and renumbering and amending former section 18586.3 to section 19059 filed 11-23-98 pursuant to section 100, title 1, California Code of Regulations (Register 98, No. 48). Note: Authority cited: Section 19253, Revenue and Taxation Code. Reference: Section 18586.3, Revenue and Taxation Code.
1. Renumbering and amendment of Section 18581-18601(c) to Section 18586.3 filed 8-19-82; effective thirtieth day thereafter (Register 82, No. 34).
2. Change without regulatory effect of subsections (a) and (e) pursuant to Section 100, Title 1, California Code of Regulations filed 12-8-89 (Register 90, No. 3).
3. Change without regulatory effect adding new article 3 (section 19059) and renumbering and amending former section 18586.3 to section 19059 filed 11-23-98 pursuant to section 100, title 1, California Code of Regulations (Register 98, No. 48).