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Business Taxes Law Guide—Revision 2024

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California Department of Tax and Fee Administration

Title 18. Public Revenues
Division 5. California Department of Tax and Fee Administration

Chapter 1. Appeals

Article 8. Appeals Conferences

California Department of Tax and Fee Administration

Chapter 1. Appeals

Article 8. Appeals Conferences

35060. Referral to Appeals Bureau for an Appeals Conference; Preferred Location for an Appeals Conference.

Reference: Sections 15570.50 and 15570.52, Government Code; Sections 6074, 6456, 6538, 6538.5, 6562, 6592, 6593, 6593.5, 6596, 6814, 6901, 6902, 6906, 6981, 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.

Where an appeal is forwarded to the Appeals Bureau for the scheduling of an appeals conference, CDTFA staff will contact the taxpayer requesting the appeals conference to verify and update the taxpayer’s contact information and to inquire as to whether the taxpayer has a preference for a specific CDTFA office at which the appeals conference should be held.

History—New article 8 (regulations 35060-35067) and regulation filed March 19, 2018, as an emergency; effective and operative March 19, 2018. Article and regulation refiled September 17, 2018, as an emergency; effective and operative September 17, 2018. Article and 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, the reference to Revenue and Taxation Code section 254.6 was deleted from the regulation’s reference note. (The regulation incorporates provisions from regulation 5260 in division 2.1.)

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

35061. Notice of Appeals Conference; Response to Notice of Appeals Conference; Submission of Arguments and Evidence; Recording an Appeals Conference.

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 and 15570.52, Government Code; Sections 6074, 6456, 6538, 6562, 6592, 6593, 6593.5, 6596, 6814, 6901, 6902, 6906, 6981, 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.

(a) At least 45 days prior to the scheduled appeals conference, the Appeals Bureau will mail to the parties a notice of appeals conference that includes the date, time, and location of the appeals conference. A response to notice of appeals conference form will be included with the notice of appeals conference.

(b) A taxpayer who receives a notice of appeals conference should complete and return the response to notice of appeals conference form within 15 days of the date the notice of appeals conference was mailed.

(c) Each party should submit, in writing, its arguments and evidence to the Appeals Bureau before the scheduled appeals conference.

(d) If a party would like to record the appeals conference, that party must check the appropriate box on the response to notice of appeals conference form and provide a copy of the recording or transcript to each of the other parties and to the Appeals Bureau. The recording and the providing of copies is at the party’s own expense. If the Appeals Bureau chooses to record the appeals conference, it will notify the parties prior to the appeals conference, and will provide each party a copy of the recording or transcript.

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, the reference to Revenue and Taxation Code section 254.6 was deleted from the regulation’s reference note. (The regulation incorporates provisions from regulation 5261 in division 2.1.)

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, 8251, 9251, 30451, 34013, 38701, 40171, 41128, 42020, 42103, 43501, 45851, 46601, 50152, 55301 and 60601, Revenue and Taxation Code.

35062. Request to Reschedule or Postpone an Appeals Conference.

Reference: Sections 15570.50 and 15570.52, Government Code; Sections 6074, 6456, 6538, 6562, 6592, 6593, 6593.5, 6596, 6814, 6901, 6902, 6906, 6981, 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) Prior to the scheduled appeals conference, a party may request that the appeals conference be rescheduled or postponed by submitting that request, in writing, to the Appeals Bureau in the manner specified on the response to notice of appeals conference form for its return.

(b) Rescheduling.

(1) An appeals conference is rescheduled for these purposes if the conference will be scheduled for a date no more than 30 days after the previously scheduled conference date. Where an appeals conference is rescheduled, the conference will be held at CDTFA’s headquarters office in Sacramento or at an office in Southern California designated by the Appeals Bureau. The parties may appear at the appeals conference in person, via telephone, or via video by appearing at a CDTFA office equipped with video conferencing capabilities.

(2) A taxpayer’s initial written request to reschedule an appeals conference will be granted. A taxpayer’s subsequent written request to reschedule an appeals conference will only be granted if the Appeals Bureau determines that there is reasonable cause.

(c) Postponement.

(1) When a party requests a new date for a scheduled appeals conference and is not requesting that the conference be rescheduled as provided by subdivision (b), the request is for postponement of the conference. When an appeals conference is postponed, the appeal is placed back into the inventory of unassigned cases and reassigned to a conference holder at a later date. When that appeal is thereafter scheduled for an appeals conference, the Appeals Bureau will notify the parties as specified in regulation 35061.

(2) If a party files a written request for postponement of an appeals conference within 15 days of the date the notice of appeals conference was mailed, the request will be granted if the Appeals Bureau determines that there is reasonable cause. If a party requests a postponement of the appeals conference more than 15 days after the date the notice of appeals conference was mailed, or submits a second or subsequent request for a postponement, the request will be granted only if the Appeals Bureau determines that there is reasonable cause and that the postponement will not unduly delay the appeal.

(d) The Appeals Bureau may also reschedule or postpone an appeals conference for reasonable cause, including unavailability of the scheduled conference holder due to illness or change in employment.

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, the reference to Revenue and Taxation Code section 254.6 was deleted from the regulation’s reference note. (The regulation incorporates provisions from regulation 5262 in division 2.1.)

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

35063. Expediting the Scheduling of an Appeals Conference.

Reference: Sections 15570.50 and 15570.52, Government Code; Sections 6074, 6456, 6538, 6562, 6592, 6593, 6593.5, 6596, 6814, 6901, 6902, 6906, 6981, 7657, 7657.1, 7657.5, 7658, 7658.1, 7700, 7700.5, 7711, 8126, 8128, 8191, 8828, 8828.5, 8852, 8877, 8878, 8878.5, 8879, 8800, 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) The taxpayer may request that the appeals conference for the taxpayer’s appeal be expedited by submitting such a request, in writing, in which the taxpayer agrees to:

(1) Attend an appeals conference at CDTFA’s headquarters office in Sacramento or at an office in Southern California designated by the Appeals Bureau;

(2) Attend a video conference at one of CDTFA’s offices equipped with video conferencing capabilities; or

(3) Participate in the appeals conference via telephone.

(b) Where the taxpayer submits a request described in subdivision (a), the Appeals Bureau will schedule the appeals conference as soon as feasible, and will issue the notice of appeals conference no more than 60 days after receiving the request. That notice of appeals conference may be issued less than 45 days before the scheduled conference, but the Appeals Bureau will not issue the notice less than 21 days before the scheduled conference without the consent of the parties.

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, the reference to Revenue and Taxation Code section 254.6 was deleted from the regulation’s reference note. (The regulation incorporates provisions from regulation 5263 in division 2.1.)

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

35064. Conducting an Appeals Conference; Parties to the Appeals Conference; Nature of the Appeals Conference; Additional Submissions.

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 and 15570.52, Government Code; Sections 6074, 6456, 6538, 6562, 6592, 6593, 6593.5, 6596, 6814, 6901, 6902, 6906, 6981, 7081, 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.

(a) The appeals conference will be held by an Appeals Bureau conference holder who has not had any prior involvement in the appeal being discussed at the appeals conference. It is the responsibility of the Appeals Bureau to consider the contentions presented by the parties, gather the applicable facts, conduct any investigation it deems warranted, and analyze and apply the law to the facts as determined by the conference holder in order to make an objective determination of the correct resolution of the appeal.

(b) Each party to the appeal may be present for and participate in the appeals conference.

(c) The appeals conference is an informal discussion of the relevant facts and applicable laws. It is important that all relevant information be presented to the Appeals Bureau. A party may submit written arguments and documentary evidence to the Appeals Bureau at any time before or during the appeals conference, but may do so after the conference only with the consent, or at the request, of the Appeals Bureau.

(1) If the conference holder grants a party’s request to make a submission after the appeals conference, he or she will grant that party at least 15 days, but not more than 30 days without the consent of the Assistant Chief Counsel of the Appeals Bureau or his or her designee, to provide a submission. The conference holder will also grant the other parties to the appeal at least 15 days, but not more than 30 days without the consent of the Assistant Chief Counsel of the Appeals Bureau or his or her designee, to respond to the submission.

(2) The Appeals Bureau may request that a party submit additional written argument or documentation, and when it does so, will inform the party when the requested submission is due. The Appeals Bureau will determine whether a response should be submitted by another party, and if so, will advise that party when the response is due.

(d) If a party does not appear at the appeals conference, whether in person or otherwise, the Appeals Bureau will hold the conference as scheduled, with any parties in attendance. Following the appeals conference, the Appeals Bureau will mail a letter to any party who did not attend the conference stating that the appeals conference was held and providing the party an opportunity to make a written submission in support of the party’s position in the appeal.

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, the reference to Revenue and Taxation Code section 254.6 was deleted from the regulation’s reference note. (The regulation incorporates provisions from regulation 5264 in division 2.1.)

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.

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

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.

(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.

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.)

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.

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.

35067. Public Record.

Reference: Sections 6901, 6981, 8126, 8191, 9151, 9196, 30361, 30421, 38601, 38631, 40111, 40121, 41100 41107, 43451, 43491, 45651, 45801, 46501, 46551, 50139, 50151, 55221, 55281 60521 and 60581, Revenue and Taxation Code.

If the Appeals Bureau decision is that an amount determined pursuant to the Integrated Waste Management Fee Law exceeding $15,000 be canceled, or otherwise recommends that an amount exceeding $50,000 be refunded, credited, or canceled, the fact that CDTFA will refund, credit, or cancel such amount must be available as a public record, if required by law, for at least 10 days prior to the effective date of the refund, credit, or cancellation.

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, the reference to Revenue and Taxation Code section 254.6 was deleted from the regulation’s reference note. (The regulation incorporates provisions from regulation 5267 in division 2.1.)

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