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Business Taxes Law Guide—Revision 2024
Sales And Use Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 8. Administration
Article 1. Administration
Section 7060
7060. Reward program for unreported tax information. (a) The board, under regulations prescribed by the board, may establish a reward program for information resulting in the identification of underreported or unreported taxes due under this part. Any reward may not exceed 10 percent of the taxes collected as a result of the information provided. Any person employed by or under contract with any state or federal tax collection agency shall not be eligible for a reward provided pursuant to this section.
(b) Within 2½ years of the effective date of the act adding this subdivision or within 2½ years of the commencement of a program pursuant to subdivision (a), whichever is later, the board shall report to the Legislature on all of the following:
(1) The number of informant letters and telephone calls received during the 2-year period following the effective date of the act adding this subdivision or following the commencement of a program pursuant to subdivision (a), whichever is later.
(2) The amount of additional taxes and penalties assessed and collected as a result of this program and the amount of rewards distributed.
(3) The administrative costs incurred in implementing and operating this program.
(c) Rewards paid pursuant to this section shall be paid from amounts appropriated by the Legislature for that purpose.
History—Added by renumbering Section 7059, as added by Stats. 1984, Ch. 1490, by Stats. 1985, Ch. 591, effective January 1, 1986. Stats. 1992, Ch. 671, in effect January 1, 1993, added the subdivision letter (a) to the beginning of the section; and added subdivisions (b) and (c).