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Business Taxes Law Guide – Revision 2020
 

Appeals Regulations

Chapter 1. Appeals

Article 8. Appeals Conferences

Rule 35065

35065. Contents and Issuance of an Appeals Bureau Decision; Finality.

(a) An Appeals Bureau decision is deemed issued on the date it is mailed to the parties.

(b) Except as provided in subdivision (c), the Appeals Bureau will issue its written decision no later than 90 days after the last submission as authorized by subdivision (c) of regulation 35064.

(c) The Appeals Bureau may submit a written request to the Chief Counsel of CDTFA, or his or her designee, for additional time to issue its decision. If such a request is granted, the Appeals Bureau will mail the Chief Counsel’s approval to each party to the appeal.

(d) The Appeals Bureau decision will include:

(1) A statement of each issue raised by the taxpayer;

(2) A statement of relevant facts;

(3) A statement of the relevant law applicable to each issue raised by the taxpayer, and the Appeals Bureau’s analysis and application of that law to the relevant information available to the Appeals Bureau;

(4) The findings and conclusions of the Appeals Bureau; and

(5) A statement that the appeal is denied in full, granted in full, granted in part and denied in part, or remanded to BTFD or the applicable state agency to perform a reaudit in accordance with the decision.

(e) The Appeals Bureau will mail a copy of its decision to each party to the appeal and, except where the decision remands the appeal for reaudit, will include a letter that explains the available options for appealing the decision. Where the Appeals Bureau decision remands the appeal for reaudit, the Appeals Bureau, upon receipt of a completed reaudit that complies with the Appeals Bureau decision, will mail a letter to the parties explaining the results of the reaudit and the available options for appealing the decision. The options for appealing a decision are:

(1) Any party who disagrees with the Appeals Bureau decision, in whole or in part, may submit a request for reconsideration to the Appeals Bureau, in accordance with Regulation 35066, within 30 days after the date of mailing of the letter explaining the options of the parties.

(2) Where the Appeals Bureau decision is adverse to the taxpayer or is adverse to a state agency other than CDTFA, the taxpayer or other state agency may submit an appeal to the Office of Tax Appeals, in accordance with that office’s regulations, within 30 days after the date of mailing of the letter explaining the options of the parties.

(f) Any party that discovers a significant factual error in an Appeals Bureau decision should contact the Appeals Bureau within 30 days from the date the decision is issued. If the Appeals Bureau agrees or otherwise discovers any errors, it may issue a revised decision to correct the errors, provided that, prior to expiration of the period during which a party may submit an appeal to the Office of Tax Appeals, the Appeals Bureau either issues the revised decision or mails notice to the parties of the intent of the Appeals Bureau to issue a revised decision. Where the Appeals Bureau issues a revised decision, it will include a letter explaining the applicable options for appeal of the Appeals Bureau decision as provided in subdivision (e).

(g) If, within 30 days of the date of mailing of the letter described in subdivision (e), no valid request for reconsideration is submitted to the Appeals Bureau and no valid appeal is submitted to the Office of Tax Appeals, the Appeals Bureau decision becomes final, and the appeal will be processed in accordance with that decision.

Note: Authority cited: Section 22971.2, Business and Professions Code; Sections 15570.40 and 15606, Government Code; Section 25215.74, Health and Safety Code; Sections 7051, 7202, 7203, 7261, 7262, 8251, 9251, 30451, 34013, 38701, 40171, 41128, 42020, 42103, 43501, 45851, 46601, 50152, 55301 and 60601, Revenue and Taxation Code.

Reference: Sections 22973.1, 22974.3, 22974.7, 22977.2, 22978.2, 22978.7, 22979, 22979.7 and 22980.2, Business and Professions Code; Sections 15570.50, 15570.52 and 15570.54, Government Code; Sections 6074, 6456, 6538, 6562, 6592, 6593, 6593.5, 6596, 6814, 6901, 6902, 6906, 6981, 7209, 7223, 7269, 7270, 7657, 7657.1, 7657.5, 7658, 7658.1, 7700, 7700.5, 7711, 8126, 8128, 8191, 8828, 8828.5, 8852, 8877, 8878, 8878.5, 8879, 8880, 9024, 9151, 9152, 9196, 30174, 30175, 30176, 30176.1, 30176.2, 30177, 30178, 30178.1, 30243, 30243.5, 30262, 30282, 30283, 30283.5, 30284, 30285, 30361, 30362, 30365, 30421, 30438, 30439, 38433, 38435, 38443, 38452, 38453, 38454, 38454.5, 38455, 38564, 38601, 38602, 38605, 38631, 40093, 40102, 40103, 40103.5, 40104, 40105, 40111, 40112, 40115, 40121, 41033, 41087, 41096, 41097, 41097.5, 41098, 41099, 41100, 41101, 41104, 41107, 43157, 43158, 43158.5, 43159, 43159.1, 43159.2, 43303, 43351, 43352, 43451, 43452, 43454, 43491, 45155, 45156, 45156.5, 45157, 45158, 45303, 45352, 45353, 45651, 45652, 45654, 45801, 46156, 46157, 46157.5, 46158, 46159, 46302, 46303, 46353, 46454, 46501, 46502, 46505, 46551, 50112.2, 50112.3, 50112.4, 50112.5, 50112.6, 50116, 50120.2, 50120.3, 50139, 50140, 50142, 50151, 55044, 55045, 55045.1, 55046, 55046.5, 55083, 55102, 55103, 55221, 55222, 55224, 55281, 60209, 60210, 60210.5, 60211, 60212, 60332, 60333, 60352, 60501, 60502, 60506, 60507, 60521, 60522 and 60581, Revenue and Taxation Code.

History: New regulation filed March 19, 2018, as an emergency; effective and operative March 19, 2018. Regulation refiled September 17, 2018, as an emergency; effective and operative September 17, 2018. Regulation refiled December 17, 2018, as an emergency; effective and operative December 17, 2018. Certificate of Compliance transmitted to OAL on February 20, 2019 and filed March 19, 2019. When the regulation was refiled September 17, 2018, “Options for appealing a decision may include submitting a request for reconsideration to the Appeal Bureau and submitting an appeal to the Office of Tax Appeals.The letter will explain that the parties must exercise their available options within 30 days of the date the Appeals Bureau letter is mailed.” was replaced with “The options for appealing a decision are:” at the end of subdivision (e); paragraphs (1) and (2) were added to subdivision (e); “request review by” was replaced with “submit an appeal to” in the second sentence in subdivision (f); “valid” was added before “request” and “appeal” in subdivision (g); and the reference to Revenue and Taxation Code section 254.6 was deleted from the regulation’s reference note. (The regulation incorporates provisions from regulation 5265 in division 2.1.)