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Business Taxes Law Guide—Revision 2024
Fee Collection Procedures Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 30. Fee Collection Procedures Law
Chapter 6. Administration and Taxpayers' Bill of Rights
Article 2. The California Taxpayers' Bill of Rights
Section 55335
55335. Claim for reimbursement of bank charges by taxpayer. (a) A taxpayer may file a claim with the board for reimbursement of bank charges and any other reasonable third-party check charge fees incurred by the taxpayer as the direct result of an erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action by the board. Bank and third-party charges include a financial institution's or third party's customary charge for complying with the levy or notice to withhold instructions and reasonable charges for overdrafts that are a direct consequence of the erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action. The charges are those paid by the taxpayer and not waived or reimbursed by the financial institution or third party. Each claimant applying for reimbursement shall file a claim with the board that shall be in a form as may be prescribed by the board. In order for the board to grant a claim, the board shall determine that both of the following conditions have been satisfied:
(1) The erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action was caused by board error.
(2) Prior to the erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action the taxpayer responded to all contacts by the board and provided the board with any requested information or documentation sufficient to establish the taxpayer's position. This provision may be waived by the board for reasonable cause.
(b) Claims pursuant to this section shall be filed within 90 days from the date the bank and third-party charges were incurred by the taxpayer. Within 30 days from the date the claim is received, the board shall respond to the claim. If the board denies the claim, the taxpayer shall be notified in writing of the reason or reasons for the denial of the claim.
History—Stats. 2001, Ch. 543 (SB 1185), added "and any other … check charge fees" after "of bank charges" in subdivision (a), added "and third-party" prior to "charges include a" in subdivision (a), added "or third party's" after "a financial institution's" in subdivision (a), added "or third party" after "the financial institution" in subdivision (a), effective January 1, 2002. Stats. 2013, Ch. 253 (SB 442), in effect January 1, 2014, added ", erroneous processing action, or erroneous collection action" after "erroneous levy or notice to withhold" throughout the section; substituted "or reimbursed" for "for reimbursement" after "taxpayer and not waived" in, and added "erroneous" after "Prior to the" in the first sentence of paragraph (2) of, subdivision (a); and substituted "the bank and third-party charges were incurred by the taxpayer" for "of the levy or notice to withhold" after "90 days from the date" in the first sentence of subdivision (b).