Cal. Code Regs. Tit. 10, § 8040 - Notice to and Duties of the Franchise Tax Board

Current through Register 2021 Notice, Register No. 40, October 1, 2021

(a) Upon approval by the committee, GO-Biz shall provide the negotiated agreements to the Franchise Tax Board in the form and manner agreed to by the Franchise Tax Board and GO-Biz. The Franchise Tax Board shall also have access to the application and any and all documentation provided by the applicant or prepared or relied on by GO-Biz or the committee in the decision to approve the agreement and allocate a credit. The Franchise Tax Board shall also have access to any and all information and documentation provided by the applicant after a credit is allocated.
(b) Pursuant to Revenue and Taxation Code sections 17059.2(d) and 23689(d), for any business other than a small business, the Franchise Tax Board shall review the books and records of all applicants allocated a credit pursuant to the agreement to ensure compliance with the terms and conditions of the agreement between the applicant and GO-Biz.
(c) In the case of an applicant that is a small business, a review of the books and records of the applicant may be made when, in the sole discretion of the Franchise Tax Board, a review of those books and records is appropriate or necessary in the best interests of the state. If the Franchise Tax Board exercises its discretion to review the books and records of an applicant that is a small business, the review shall be conducted to ensure compliance with the terms and conditions of the written agreement between the applicant and GO-Biz.
(d) The form and manner of the review of the books and records to ensure compliance with the terms of the agreement shall be at the sole discretion of the Franchise Tax Board. These reviews will not be treated as an audit of the tax return under Part 10.2 (commencing with section 18401) of the Revenue and Taxation Code and the regulations thereunder, and will not preclude the Franchise Tax Board from auditing any issue in any taxable year, including a taxable year included in the term of the agreement.
(e) If during the review of the books and records, Franchise Tax Board determines there is a possible material breach of the written agreement by the applicant, the Franchise Tax Board shall notify GO-Biz and provide detailed information regarding the basis for that determination.
(f) Upon approval by the committee to recapture a credit, GO-Biz shall provide the terms and amount of recapture to the Franchise Tax Board in the form and manner agreed to by the Franchise Tax Board and GO-Biz.

Notes

Cal. Code Regs. Tit. 10, § 8040

Note: Authority cited: Sections 17059.2 and 23689, Revenue and Taxation Code. Reference: Sections 17059.2,18410.2 and 23689, Revenue and Taxation Code.

1. New section filed 2-20-2014 as an emergency; operative 2-20-2014 (Register 2014, No. 8). A Certificate of Compliance must be transmitted to OAL by 8-19-2014 or emergency language will be repealed by operation of law on the following day.
2. Readoption of 2-20-2014 action filed on 8-18-2014 as an emergency, including repealer of section 8040 and renumbering and amendment of former section 8070 to new section 8040; operative 8-18-2014 (Register 2014, No. 34). A Certificate of Compliance must be transmitted to OAL by 11-17-2014 or emergency language will be repealed by operation of law on the following day.
3. Readoption of 8-18-2014 action 11-17-2014 as an emergency; operative 11-17-2014 (Register 2014, No. 47). A Certificate of Compliance must be transmitted to OAL by 2-16-2015 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 11-17-2014 order transmitted to OAL 12-31-2014 and filed 2-5-2015 (Register 2015, No. 8).

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