Laws, Regulations and Annotations


Business Taxes Law Guide—Revision 2024

Tax on Insurers Annotations

Deficiency Assessment

When an insurer notifies the Commissioner that it owes a higher tax liability than was initially reported, the Commissioner should propose the self-reported underpayment as a deficiency assessment under Revenue and Taxation Code (RTC) section 12422, including any applicable negligence and/or fraud penalties. It is inappropriate to automatically include a 10% late payment penalty pursuant to the provisions of RTC section 12631 because such provisions specifically except a tax determined as a deficiency assessment from such penalty. Based on the Commissioner's proposal the Board would issue a deficiency assessment under RTC section 12424. 6/11/90A. (Am. 2003–3, Am. 2005–1).