Laws, Regulations and Annotations
Business Taxes Law Guide – Revision 2023
Title 18. Public Revenues
Division 5. California Department of Tax and Fee Administration
Chapter 1. Appeals
Article 8. Appeals Conferences
35066. Request for Reconsideration; Supplemental Decision.
Reference: Sections 15570.50 and 15570.52, 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, 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.
(a) A party may, within 30 days after the date of mailing of the letter described in regulation 35065, subdivision (e), submit to the Appeals Bureau a written request for reconsideration of an Appeals Bureau decision. The request must identify the specific issue or issues for which reconsideration is sought, and must explain the reasons the party disagrees with the decision, the results of the reaudit, or both.
(b) If a party submits a timely request for reconsideration of an Appeals Bureau decision as provided in subdivision (a), the Appeals Bureau will prepare a supplemental decision to respond to the request and to address any other matter the Appeals Bureau deems warranted.
(1) The Appeals Bureau will mail a letter to acknowledge receipt of the request, and will offer the other party or parties an opportunity to respond to the request for reconsideration. In that letter or thereafter, the Appeals Bureau may allow or request additional written argument or documentation from any party, and if it does so, it will inform the party when that submission is due.
(2) The supplemental decision will state:
(A) The issues raised by the request for reconsideration and any other matters the Appeals Bureau deems warranted;
(B) The facts, law, and analysis necessary to resolve those issues;
(C) The findings and conclusions of the Appeals Bureau;
(D) Whether the Appeals Bureau is making any adjustment to its decision; and
(E) Whether 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 supplemental decision.
(3) The provisions of regulation 35065, other than subdivision (d), are applicable to the issuance and finality of a supplemental decision. The letter described in subdivision (e) of regulation 35065 will also note that acceptance of any further request for reconsideration is within the discretion of the Appeals Bureau.
(c) Where a party submits a request for reconsideration of a supplemental decision within 30 days after the date of mailing of the letter described in regulation 35065, subdivision (e), the Appeals Bureau may, in its discretion, issue another supplemental decision. The Appeals Bureau will mail a letter to the parties to acknowledge receipt of the request and to inform the parties whether the request will be accepted or not. If the request is accepted, the provisions of subdivision (b) are applicable to the issuance of the supplemental decision. If the Appeals Bureau determines that another supplemental decision is not warranted, the acknowledgment letter will advise the parties that another supplemental decision will not be issued, and will explain whether any party has the option to submit an appeal to the Office of Tax Appeals. The letter will also explain that the most recent supplemental decision issued by the Appeals Bureau will become final if no such timely appeal is submitted to the Office of Tax Appeals, or if no such appeal is available.
(d) Where a party makes a submission to the Appeals Bureau within 30 days after the date of mailing of the letter described in regulation 35065, subdivision (e), which requests that the Appeals Bureau change its decision or supplemental decision but which the Appeals Bureau concludes does not constitute a complete request for reconsideration, the Appeals Bureau will so notify the party and will explain what additional information, argument, or evidence the party must submit to complete its request for reconsideration. The party will be allowed 30 days from the date of mailing of the notification to complete its request for reconsideration, without any extension.
(1) If, within the 30 days allowed, the party makes a submission that completes the party’s request for reconsideration, the provisions of subdivision (b) apply if the request is for reconsideration of a decision and the provisions of subdivision (c) apply if the request is for reconsideration of a supplemental decision.
(2) If, within the 30 days allowed, the party makes no submission or otherwise fails to complete the party’s request for reconsideration, the Appeals Bureau will notify the party that the time to complete its request for reconsideration has expired. If the party is the taxpayer or a state agency other than CDTFA, the notification will allow that party 30 days to submit an appeal of the decision or supplemental decision to the Office of Tax Appeals. If the party does not submit a valid appeal to the Office of Tax Appeals within 30 days from the date of mailing of the notification then, unless a valid appeal of the Appeals Bureau decision or supplemental decision had already been submitted to the Office of Tax Appeals, the Appeals Bureau decision or supplemental decision becomes final and the appeal will be processed in accordance with that decision or supplemental decision.
(e) The Appeals Bureau may, in its discretion, also issue a supplemental decision where no party has filed a timely request for reconsideration. Where the Appeals Bureau determines that a supplemental decision is warranted in the absence of a party’s request for reconsideration, it must, within 30 days after the date of mailing of the letter described in regulation 35065, subdivision (e), either issue the supplemental decision or mail a letter to the parties notifying them that the Appeals Bureau will be issuing a supplemental decision.
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, "request review by" was replaced with "submit an appeal to" in the fourth sentence in subdivision (c), new subdivision (d) was added, the original subdivision (d) was renumbered as subdivision (e), 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 5266 in division 2.1.)
Note.—Authority cited: 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.