State Codes and Statutes

Statutes > California > Rtc > 18631-18649

REVENUE AND TAXATION CODE
SECTION 18631-18649



18631.  (a) This article does not apply to any payment of interest
obligations not taxable under Part 10 (commencing with Section 17001)
or Part 11 (commencing with Section 23001).
   (b) Except as otherwise provided, every person required to file an
information return with the Secretary of the Treasury under any of
the federal sections listed in subdivision (c) may be required to
file a copy of the federal information return with the Franchise Tax
Board at the time and in the manner as it may, by forms and
instructions, require.
   (c) Subdivision (b) shall apply to each of the following:
   (1) Section 6034A of the Internal Revenue Code, relating to
information to beneficiaries of estates and trusts.
   (2) Section 6039 of the Internal Revenue Code, relating to returns
required in connection with certain options.
   (3) Section 6039C of the Internal Revenue Code, relating to
returns with respect to foreign persons holding direct investments in
United States real property interests, if that person holds a direct
investment in a California real property as defined in Section
18662.
   (4) Section 6041 of the Internal Revenue Code, relating to
information at source.
   (5) Section 6041A of the Internal Revenue Code, relating to
returns regarding payments of remuneration for services and direct
sales, except that no return or statement shall be required with
respect to direct sales pursuant to Section 6041A(b) of the Internal
Revenue Code.
   (6) Section 6042 of the Internal Revenue Code, relating to returns
regarding payments of dividends and corporate earnings and profits.
   (7) Section 6045 of the Internal Revenue Code, relating to returns
of brokers.
   (8) Section 6049 of the Internal Revenue Code, relating to returns
regarding payments of interest.
   (9) Section 6050H of the Internal Revenue Code, relating to
returns relating to mortgage interest received in trade or business
from individuals.
   (10) (A) Section 6050I of the Internal Revenue Code, relating to
returns relating to cash received in trade or business, etc., except
that Section 6050I(g) of the Internal Revenue Code, relating to cash
received by criminal court, shall not apply.
   (B) (i) The Attorney General shall, upon court order following a
showing ex parte to a magistrate of an articulable suspicion that an
individual or entity has committed a felony offense to which a
federal information return is related, be provided a copy of a
federal information return filed with the Franchise Tax Board under
this paragraph. The Attorney General may make a return or information
therefrom available to a district attorney subject to regulations
promulgated by the Attorney General. The regulations shall require
the district attorney seeking the return or information to specify in
writing the specific reasons for believing that a felony offense has
been committed to which the return or information is related.
   (ii) Any information or return obtained by the Attorney General or
a district attorney pursuant to this subparagraph shall be
confidential and used only for investigative or prosecutorial
purposes.
   (11) Section 6050J of the Internal Revenue Code, relating to
returns relating to foreclosures and abandonments of security.
   (12) (A) Section 6050K of the Internal Revenue Code, relating to
returns relating to exchanges of certain partnership interests.
   (B) In addition to the general requirement under subparagraph (A),
a transferor of a partnership interest shall be required to notify
the partnership of that exchange in accordance with Section 6050K(c)
of the Internal Revenue Code.
   (13) Section 6050L of the Internal Revenue Code, relating to
returns relating to certain donated property.
   (14) Section 6050N of the Internal Revenue Code, relating to
returns regarding payments of royalties.
   (15) Section 6050P of the Internal Revenue Code, relating to
returns relating to the cancellation of indebtedness by certain
entities.
   (16) Section 6050Q of the Internal Revenue Code, relating to
certain long-term care benefits.
   (17) Section 6050R of the Internal Revenue Code, relating to
returns relating to certain purchases of fish.
   (18) Section 6050S of the Internal Revenue Code, relating to
returns relating to higher education tuition and related expenses.
   (19) Section 6052 of the Internal Revenue Code, relating to
returns regarding payment of wages in the form of group-term life
insurance.
   (20) Section 6034(a) of the Internal Revenue Code, relating to
returns of split-interest trusts.
   (21) Section 6039I of the Internal Revenue Code, relating to
returns and records with respect to employer-owned life insurance
contracts.
   (22) Section 6039J of the Internal Revenue Code, relating to
information reporting with respect to commodity credit corporation
transactions.
   (23) Section 6050V of the Internal Revenue Code, relating to
returns relating to applicable insurance contracts in which certain
exempt organizations hold interests.
   (24) Section 6050W of the Internal Revenue Code, relating to
returns relating to payments made in settlement of payment card and
third party network transactions.
   (25) Any information return that is required to be filed with the
Secretary of the Treasury pursuant to a provision of Part III of
Subchapter A of Chapter 61 of Subtitle F (commencing with Section
6031) of the Internal Revenue Code that is added to the Internal
Revenue Code by a public law enacted on or after January 1, 2009.
   (d) Every person required to make a return under subdivision (b)
shall also furnish a statement to each person whose name is required
to be set forth in the return, as required to do so by the Internal
Revenue Code.



18631.7.  (a) Any check casher engaged in the trade or business of
cashing checks that, in the course of that trade or business, cashes
checks other than one-party checks, payroll checks, or government
checks totaling more than ten thousand dollars ($10,000) in one
transaction or two or more transactions for the same person within
the calendar year, shall file an informational return with the
Franchise Tax Board with respect to that transaction or transactions.
   (b) The return required in subdivision (a) shall be filed no later
than 90 days after the end of the calendar year and in the form and
manner prescribed by the Franchise Tax Board, and shall, at a
minimum, contain both of the following:
   (1) The name, address, taxpayer identification number, and any
other identifying information of the person presenting the check that
the Franchise Tax Board deems necessary.
   (2) The amount and date of the transaction or transactions.
   (c) For purposes of this section the following definitions apply:
   (1) Except as otherwise provided, "check casher" means a check
casher as defined under Section 1789.31 of the Civil Code.
   (2) "Checks" includes warrants, drafts, money orders, and other
commercial paper serving the same purposes, including payroll checks,
government checks, and one-party checks.
   (3) "Government check" means a check issued by a federal, state,
or local governmental entity and treated as a government check
pursuant to Section 1789.35 of the Civil Code for fee-setting
purposes.
   (4) "Payroll check" means a check for wages subject to withholding
pursuant to Section 13020 of the Unemployment Insurance Code and
treated as a payroll check pursuant to Section 1789.35 of the Civil
Code for fee-setting purposes.
   (5) "One-party check" means a check drawn upon the maker's account
and presented by the maker.
   (d) With respect to a person who fails to file the report required
by this section or fails to include all of the information required
to be shown on that report, both of the following apply:
   (1) Sections 6721 and 6724 of the Internal Revenue Code, as those
sections read on January 1, 2005, apply, except that the "Franchise
Tax Board" is substituted for the "secretary" in each place it
appears in those sections.
   (2) If the failure was willful, the person, upon conviction, shall
be punished by a fine of not more than twenty-five thousand dollars
($25,000) or, in the case of a corporation, not more than one hundred
thousand dollars ($100,000), by imprisonment in a county jail for
not more than one year, by imprisonment in the state prison, or by
both that fine and imprisonment, together with the costs of
prosecution.


18632.  Division 6 (commencing with Section 13000) of the
Unemployment Insurance Code sets forth provisions administered by the
Employment Development Department relating to the reporting,
collection, refunding to the employer, and enforcement of taxes
required to be withheld from wages paid by employers.



18633.  (a) (1) Every partnership, on or before the 15th day of the
fourth month following the close of its taxable year, shall make a
return for that taxable year, stating specifically the items of gross
income and the deductions allowed by Part 10 (commencing with
Section 17001). Except as otherwise provided in Section 18621.5, the
return shall include the names, addresses, and taxpayer
identification numbers of the persons, whether residents or
nonresidents, who would be entitled to share in the net income if
distributed and the amount of the distributive share of each person.
The return shall contain or be verified by a written declaration that
it is made under penalty of perjury, signed by one of the partners.
   (2) In addition to returns required by paragraph (1), every
limited partnership subject to the tax imposed by subdivision (b) of
Section 17935, on or before the 15th day of the fourth month
following the close of its taxable year, shall make a return for that
taxable year, containing the information identified in paragraph
(1). In the case of a limited partnership not doing business in this
state, the Franchise Tax Board shall prescribe the manner and extent
to which the information identified in paragraph (1) shall be
included with the return required by this paragraph.
   (b) Each partnership required to file a return under subdivision
(a) for any taxable year shall (on or before the day on which the
return for that taxable year was required to be filed) furnish to
each person who is a partner or who holds an interest in that
partnership as a nominee for another person at any time during that
taxable year a copy of the information required to be shown on that
return as may be required by regulations.
   (c) Any person who holds an interest in a partnership as a nominee
for another person shall do both of the following:
   (1) Furnish to the partnership, in the manner prescribed by the
Franchise Tax Board, the name, address, and taxpayer identification
number of that other person, and any other information for that
taxable year as the Franchise Tax Board may by form and regulation
prescribe.
   (2) Furnish to that other person, in the manner prescribed by the
Franchise Tax Board, the information provided by that partnership
under subdivision (b).
   (d) The provisions of Section 6031(d) of the Internal Revenue
Code, relating to the separate statement of items of unrelated
business taxable income, shall apply.
   (e) The provisions of Section 6031(f) of the Internal Revenue
Code, relating to electing investment partnerships, shall apply,
except as otherwise provided.


18633.5.  (a) Every limited liability company which is classified as
a partnership for California tax purposes that is doing business in
this state, organized in this state, or registered with the Secretary
of State shall file its return on or before the fifteenth day of the
fourth month following the close of its taxable year, stating
specifically the items of gross income and the deductions allowed by
Part 10 (commencing with Section 17001). The return shall include the
names, addresses, and taxpayer identification numbers of the
persons, whether residents or nonresidents, who would be entitled to
share in the net income if distributed and the amount of the
distributive share of each person. The return shall contain or be
verified by a written declaration that it is made under penalty of
perjury, signed by one of the limited liability company members. In
the case of a limited liability company not doing business in this
state, and subject to the tax imposed by subdivision (b) of Section
17941, the Franchise Tax Board shall, for returns required to be
filed on or after January 1, 1998, prescribe the manner and extent to
which the information identified in this subdivision shall be
included with the return required by this subdivision.
   (b) Each limited liability company required to file a return under
subdivision (a) for any limited liability company taxable year
shall, on or before the day on which the return for that taxable year
was required to be filed, furnish to each person who holds an
interest in that limited liability company at any time during that
taxable year a copy of that information required to be shown on that
return as may be required by forms and instructions prescribed by the
Franchise Tax Board.
   (c) Any person who holds an interest in a limited liability
company as a nominee for another person shall do both of the
following:
   (1) Furnish to the limited liability company, in the manner
prescribed by the Franchise Tax Board, the name, address, and
taxpayer identification number of that person, and any other
information for that taxable year as the Franchise Tax Board may
prescribe by forms and instructions.
   (2) Furnish to that other person, in the manner prescribed by the
Franchise Tax Board, the information provided by that limited
liability company under subdivision (b).
   (d) The provisions of Section 6031(d) of the Internal Revenue
Code, relating to the separate statement of items of unrelated
business taxable income, shall apply.
   (e) (1) A limited liability company shall file with its return
required under subdivision (a), in the form required by the Franchise
Tax Board, the agreement of each nonresident member to file a return
pursuant to Section 18501, to make timely payment of all taxes
imposed on the member by this state with respect to the income of the
limited liability company, and to be subject to personal
jurisdiction in this state for purposes of the collection of income
taxes, together with related interest and penalties, imposed on the
member by this state with respect to the income of the limited
liability company. If the limited liability company fails to timely
file the agreements on behalf of each of its nonresident members,
then the limited liability company shall, at the time set forth in
subdivision (f), pay to this state on behalf of each nonresident
member of whom an agreement has not been timely filed an amount equal
to the highest marginal tax rate in effect under Section 17041, in
the case of members which are individuals, estates, or trusts, and
Section 23151, in the case of members that are corporations,
multiplied by the amount of the member's distributive share of the
income source to the state reflected on the limited liability company'
s return for the taxable period, reduced by the amount of tax
previously withheld and paid by the limited liability company
pursuant to Section 18662 and the regulations thereunder with respect
to each nonresident member. A limited liability company shall be
entitled to recover the payment made from the member on whose behalf
the payment was made.
   (2) If a limited liability company fails to attach the agreement
or to timely pay the payment required by paragraph (1), the payment
shall be considered the tax of the limited liability company for
purposes of the penalty prescribed by Section 19132 and interest
prescribed by Section 19101 for failure to timely pay the tax.
Payment of the penalty and interest imposed on the limited liability
company for failure to timely pay the amount required by this
subdivision shall extinguish the liability of a nonresident member
for the penalty and interest for failure to make timely payment of
all taxes imposed on that member by this state with respect to the
income of the limited liability company.
   (3) No penalty or interest shall be imposed on the limited
liability company under paragraph (2) if the nonresident member
timely files and pays all taxes imposed on the member by this state
with respect to the income of the limited liability company.
   (f) Any agreement of a nonresident member required to be filed
pursuant to subdivision (e) shall be filed at either of the following
times:
   (1) The time the annual return is required to be filed pursuant to
this section for the first taxable period for which the limited
liability company became subject to tax pursuant to Chapter 10.6
(commencing with Section 17941).
   (2) The time the annual return is required to be filed pursuant to
this section for any taxable period in which the limited liability
company had a nonresident member on whose behalf an agreement
described in subdivision (e) has not been previously filed.
   (g) Any amount paid by the limited liability company to this state
pursuant to paragraph (1) of subdivision (e) shall be considered to
be a payment by the member on account of the income tax imposed by
this state on the member for the taxable period.
   (h) Every limited liability company that is classified as a
corporation for California tax purposes shall be subject to the
requirement to file a tax return under the provisions of Part 10.2
(commencing with Section 18401) and the applicable taxes imposed by
Part 11 (commencing with Section 23001).
   (i) (1) Every limited liability company doing business in this
state, organized in this state, or registered with the Secretary of
State, that is disregarded pursuant to Section 23038 shall file a
return that includes information necessary to verify its liability
under Sections 17941 and 17942, provides its sole owner's name and
taxpayer identification number, includes the consent of the owner to
California tax jurisdiction, and includes other information necessary
for the administration of this part, Part 10 (commencing with
Section 17001), or Part 11 (commencing with Section 23001).
   (2) If the owner's consent required under paragraph (1) is not
included, the limited liability company shall pay on behalf of its
owner an amount consistent with, and treated the same as, the amount
to be paid under subdivision (e) by a limited liability company on
behalf of a nonresident member for whom an agreement required by
subdivision (e) is not attached to the return of the limited
liability company.
   (3) The return required under paragraph (1) shall be filed on or
before the fifteenth day of the fourth month after the close of the
taxable year of the owner subject to tax under Part 10 (commencing
with Section 17001) of Division 2 or on or before the fifteenth day
of the third month after the close of the taxable year of the owner
subject to tax under Chapter 2 (commencing with Section 23101) of
Part 11 of Division 2, whichever is applicable.
   (4) For limited liability companies disregarded pursuant to
Section 23038, "taxable year of the owner" shall be substituted for
"taxable year" in Sections 17941 and 17942.
   (j) The amendments made by the act adding this subdivision apply
to taxable years beginning on or after January 1, 2005.



18635.  Every trust claiming a charitable, religious, scientific,
literary, or educational deduction under Section 642(c) of the
Internal Revenue Code for the taxable year shall furnish information
with respect to the taxable year, at the time and in the manner as
the Franchise Tax Board may by regulations prescribe, setting forth
all of the following:
   (a) The amount of the charitable, religious, scientific, literary,
or educational deduction taken under Section 642(c) of the Internal
Revenue Code within that year (showing separately the amount of the
deduction which was paid out and the amount which was permanently set
aside for charitable, religious, scientific, literary, or
educational purposes during that year).
   (b) The amount paid out within that year which represents amounts
for which charitable, religious, scientific, literary, or educational
deductions under Section 642(c) of the Internal Revenue Code have
been taken in prior years.
   (c) The amount for which charitable, religious, scientific,
literary, or educational deductions have been taken in prior years
but which has not been paid out at the beginning of that year.
   (d) The amount paid out of principal in the current and prior
years for charitable, religious, scientific, literary, or educational
purposes.
   (e) The total income of the trust within that year and the
expenses attributable thereto.
   (f) A balance sheet showing the assets, liabilities, and net worth
of the trust as of the beginning of that year.
   This section shall not apply in the case of a taxable year if all
the taxable income for that year, determined under the applicable
principles of the law of trusts, is required to be distributed
currently to the beneficiaries.



18635.5.  (a) Section 6034A of the Internal Revenue Code, relating
to information to beneficiaries of estates and trusts, shall apply,
except as otherwise provided.
   (b) Section 6034A(a) is modified to refer to Section 18505 in lieu
of Section 6012(a) of the Internal Revenue Code.
   (c) Section 6034A(c)(3) is modified to refer to Section 19051 in
lieu of Section 6213(b)(1) of the Internal Revenue Code.
   (d) Section 6034A(c)(5) is modified to refer to Article 7 of
Chapter 4 of this part in lieu of Part II of Subchapter A of Chapter
68 of the Internal Revenue Code.



18639.  (a) (1) In addition to those reports required under
paragraph (8) of subdivision (c) of Section 18631, information
returns shall be required, at the time and in the form and manner and
to the extent that the Franchise Tax Board may prescribe, from both
of the following:
   (A) Every person who makes payments of exempt-interest dividends,
as described in Section 852(b)(5) of the Internal Revenue Code, that
are not exempt-interest dividends, as described in Section 17145 of
the Revenue and Taxation Code, aggregating ten dollars ($10) or more
to any person, other than to any person described in paragraph (2),
during any calendar year.
   (B) Every person who receives payments of interest as a nominee
and who makes payments aggregating ten dollars ($10) or more during
any calendar year to any other person, other than to any person
described in paragraph (2), with respect to the interest so received.
For purposes of this paragraph, "interest" is limited to interest on
any obligation if the interest is exempt from tax under Section 103
(a) of the Internal Revenue Code or if the interest is exempt from
tax, without regard to the identity of the holder, under any other
provision of Title 26 of the United States Code, but which is not
exempt from income tax under Part 10 (commencing with Section 17001).
   (2) For purposes of this subdivision, a person shall not be
required to make a report pursuant to paragraph (1) if the person
receiving the payment is any of the following:
   (A) A corporation.
   (B) An organization exempt from taxation under Section 23701 or an
individual retirement plan.
   (C) The United States or any wholly owned agency or
instrumentality thereof.
   (D) A state, the District of Columbia, a possession of the United
States, any political subdivision of any of the foregoing, or any
wholly owned agency or instrumentality of any one or more of the
foregoing.
   (E) A foreign government, a political subdivision of a foreign
government, or any wholly owned agency or instrumentality of any one
or more of the foregoing.
   (F) An international organization or any wholly owned agency or
instrumentality thereof.
   (G) A foreign central bank of issue.
   (H) A dealer in securities or commodities required to register
under the laws of the United States or a state, the District of
Columbia, or possession of the United States.
   (I) A real estate investment trust, as defined in Section 856 of
the Internal Revenue Code.
   (J) An investment company, as defined in Section 80a-3 of the
United States Code, registered at all times during the taxable year
under the Investment Company Act of 1940.
   (K) A common trust fund, as defined in Section 17671.
   (L) Any trust that is exempt from tax under Section 664(c) of
Title 15 of the Internal Revenue Code.
   (b) Every person required to make a return under this section
shall also furnish a statement to each person whose name is set forth
in the return, as required to do so by the Internal Revenue Code.



18640.  (a) Any corporation allocating amounts as patronage
dividends, rebates, or refunds (whether in cash, merchandise, capital
stock, revolving fund certificates, retain certificates,
certificates of indebtedness, letters of advice, or in some other
manner that discloses to each patron the amount of the dividend,
refund, or rebate) shall render a correct return that shall contain
or be verified by a written declaration that it is made under the
penalty of perjury, stating both of the following:
   (1) The name and address of each patron to whom it has made those
allocations amounting to one hundred dollars ($100) or more during
the calendar year.
   (2) The amount of those allocations to each patron.
   If required by the Franchise Tax Board, any corporation described
in this subdivision shall render a correct return, which shall
contain or be verified by a written declaration that it is under
penalty of perjury, of all patronage dividends, rebates, or refunds
made during the calendar year to its patrons. This section shall not
apply in the case of any corporation exempt from tax under Article 1
(commencing with Section 23701) of Chapter 4 of Part 11.
   (b) Every cooperative required to make a return under subdivision
(a) shall furnish to each person whose name is required to be set
forth in that return a written statement showing both of the
following:
   (1) The name, address, and telephone number of the cooperative
required to make that return.
   (2) The aggregate amount of the allocations required to be made to
the person as shown on that return.
   (c) The written statement required under subdivision (b) shall be
furnished (either in person or in a separate mailing by first-class
mail which includes adequate notice that the statement is enclosed)
to the person on or before January 31 of the year following the
calendar year for which the return under subdivision (a) was required
to be made, and shall be in the form which the Franchise Tax Board
may prescribe.
   (d) The amendments made by this act adding this subdivision are
operative for information returns required to be filed on or after
January 1, 1999.


18642.  (a) All owners and transferors of an interest in real
property or a mobilehome shall file a return upon written request by
the Franchise Tax Board which includes a social security number or
other identification number prescribed by the Franchise Tax Board,
identification of the property interest, and any other pertinent
information about the interest requested by the Franchise Tax Board.
   (b) Subdivision (a) shall not apply to any of the following:
   (1) Property granted a homeowner's property tax exemption.
   (2) Property which is not assessed by a California county
assessor.
   (c) Owners and transferors failing to file a return required by
subdivision (a) on or before the due date of the return shall be
subject to the penalty provided by Section 19183, unless the failure
is due to reasonable cause and not due to willful neglect.
   (d) Owners failing to file a return required by subdivision (a)
within 60 days of the due date of the return shall be subject to the
sanctions provided by Section 17299.9 disallowing certain expenses
related to the property for which a return is required, unless it is
shown that the failure is due to reasonable cause and not due to
willful neglect.
   (e) The Franchise Tax Board shall mail to each owner and
transferor required to file a return pursuant to subdivision (a) a
notice at least 60 days prior to the due date of the return. The
notice shall be in a form and shall include any information which the
Franchise Tax Board prescribes and shall advise owners and
transferors of all of the following:
   (1) The requirement to provide the Franchise Tax Board with a
social security number or other identification number prescribed by
the Franchise Tax Board.
   (2) When the statement is due.
   (3) A general description of the tax consequences of not providing
the requested information.
   (f) The social security number or other identification number
furnished pursuant to this section shall be used exclusively for tax
administration purposes. It is the intent of the Legislature in
enacting this section to utilize the social security number or other
identification number for the sole purpose of establishing the
identification of individuals or entities affected by state tax laws.




18644.  (a) The operator of a boat on which one or more individuals,
during a calendar year, perform services described in subdivision
(o) of Section 13009 of the Unemployment Insurance Code shall submit
to the Franchise Tax Board (at the time, and in the manner and form,
as the Franchise Tax Board shall by regulations prescribe)
information respecting all of the following:
   (1) The identity of each individual performing those services.
   (2) The percentage of each individual's share of the catches of
fish or other forms of aquatic animal life, and the percentage of the
operator's share of those catches.
   (3) If that individual receives his or her share in kind, the type
and weight of that share, together with the other information as the
Franchise Tax Board may prescribe by regulations reasonably
necessary to determine the value of those shares.
   (4) If that individual receives a share of the proceeds of those
catches, the amount so received.
   (b) Every person required to make a return under subdivision (a)
shall furnish to each person whose name is required to be set forth
in that return a written statement showing the information relating
to that person contained in that return. The written statement
required under the preceding sentence shall be furnished to the
person on or before January 31 of the year following the calendar
year for which the return under subdivision (a) was required to be
made.


18646.  (a) The head of every state agency (as defined by Section
11000 of the Government Code) entering into any contract shall make a
return (at the time and in the form the Franchise Tax Board may by
regulation prescribe) setting forth all of the following:
   (1) The name, address, type of business entity, and taxpayer
identification number of each person with which that agency entered
into a contract during the calendar year.
   (2) Any other information the Franchise Tax Board may require.
   (b) The Franchise Tax Board may provide that this section also
shall apply to any of the following:
   (1) Licenses granted by state agencies.
   (2) Subcontracts under contracts to which subdivision (a) applies.
   (c) This section shall not apply to contracts or licenses in any
class which are below a minimum amount or value which may be
determined by the Franchise Tax Board for that class.



18648.  (a) Section 6112 of the Internal Revenue Code, relating to
material advisors of reportable transactions that must keep lists of
advisees, applies except as otherwise provided.
   (b) Section 6112 of the Internal Revenue Code is modified by
substituting the phrase "Secretary or the Franchise Tax Board" for
the word "Secretary" each place it appears.
   (c) The requirement to maintain lists under this section shall
apply to any material advisor, as defined in Section 6111 of the
Internal Revenue Code, with respect to any reportable transaction, as
defined in Section 6707A(c) of the Internal Revenue Code and
regardless of whether a return is required to be filed under Section
18628 with respect to that reportable transaction and with respect to
a material advisor that satisfies any of the following conditions:
   (1) Is organized in this state.
   (2) Is doing business in this state.
   (3) Derives income from sources in this state.
   (4) Provides any material aid, assistance, or advice with respect
to organizing, managing, promoting, selling, implementing, insuring,
or carrying out any reportable transaction with respect to a taxpayer
that meets any of the following conditions:
   (A) Is organized in this state.
   (B) Does business in this state.
   (C) Derives income from sources in this state.
   (d) (1) In addition to any regulation issued under Section 6112 of
the Internal Revenue Code, the list required to be maintained by
this section for listed transactions, as defined in Section 6707A(c)
(2) of the Internal Revenue Code, shall be maintained in the form and
manner prescribed by the Franchise Tax Board.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
requirement prescribed by the Franchise Tax Board under this section.
   (3) For transactions entered into on or after February 28, 2000,
that become listed transactions (as defined under Section 6707A(c)(2)
of the Internal Revenue Code) at any time, the lists shall be
provided to the Franchise Tax Board by the later of:
   (A) Sixty days after entering into the transaction.
   (B) Sixty days after the transaction becomes a listed transaction.
   (4) For transactions entered into on or after September 2, 2003,
that are specifically identified by the Franchise Tax Board for
California income or franchise tax purposes (under the authority of
paragraph (4) of subdivision (a) of Section 18407) as a "listed
transaction" at any time, the list shall be provided to the Franchise
Tax Board by the later of:
   (A) Sixty days after entering into the transaction.
   (B) Sixty days after the transaction becomes a listed transaction.



18648.5.  (a) Section 6115 of the Internal Revenue Code, relating to
disclosure related to quid pro quo contributions, shall apply,
except as otherwise provided.
   (b) The requirements of subdivision (a) shall be treated as being
satisfied upon a showing that the requirements in Section 6115 of the
Internal Revenue Code have been met with respect to that
contribution for federal purposes.
   (c) The provisions of this section shall apply to quid pro quo
contributions made on or after January 1, 1997.



18649.  A copy of the information furnished pursuant to Section 1275
(c)(2) of the Internal Revenue Code shall be provided to the
Franchise Tax Board by any issuer subject to tax under this part at
the time and in the manner required by the Franchise Tax Board.


State Codes and Statutes

Statutes > California > Rtc > 18631-18649

REVENUE AND TAXATION CODE
SECTION 18631-18649



18631.  (a) This article does not apply to any payment of interest
obligations not taxable under Part 10 (commencing with Section 17001)
or Part 11 (commencing with Section 23001).
   (b) Except as otherwise provided, every person required to file an
information return with the Secretary of the Treasury under any of
the federal sections listed in subdivision (c) may be required to
file a copy of the federal information return with the Franchise Tax
Board at the time and in the manner as it may, by forms and
instructions, require.
   (c) Subdivision (b) shall apply to each of the following:
   (1) Section 6034A of the Internal Revenue Code, relating to
information to beneficiaries of estates and trusts.
   (2) Section 6039 of the Internal Revenue Code, relating to returns
required in connection with certain options.
   (3) Section 6039C of the Internal Revenue Code, relating to
returns with respect to foreign persons holding direct investments in
United States real property interests, if that person holds a direct
investment in a California real property as defined in Section
18662.
   (4) Section 6041 of the Internal Revenue Code, relating to
information at source.
   (5) Section 6041A of the Internal Revenue Code, relating to
returns regarding payments of remuneration for services and direct
sales, except that no return or statement shall be required with
respect to direct sales pursuant to Section 6041A(b) of the Internal
Revenue Code.
   (6) Section 6042 of the Internal Revenue Code, relating to returns
regarding payments of dividends and corporate earnings and profits.
   (7) Section 6045 of the Internal Revenue Code, relating to returns
of brokers.
   (8) Section 6049 of the Internal Revenue Code, relating to returns
regarding payments of interest.
   (9) Section 6050H of the Internal Revenue Code, relating to
returns relating to mortgage interest received in trade or business
from individuals.
   (10) (A) Section 6050I of the Internal Revenue Code, relating to
returns relating to cash received in trade or business, etc., except
that Section 6050I(g) of the Internal Revenue Code, relating to cash
received by criminal court, shall not apply.
   (B) (i) The Attorney General shall, upon court order following a
showing ex parte to a magistrate of an articulable suspicion that an
individual or entity has committed a felony offense to which a
federal information return is related, be provided a copy of a
federal information return filed with the Franchise Tax Board under
this paragraph. The Attorney General may make a return or information
therefrom available to a district attorney subject to regulations
promulgated by the Attorney General. The regulations shall require
the district attorney seeking the return or information to specify in
writing the specific reasons for believing that a felony offense has
been committed to which the return or information is related.
   (ii) Any information or return obtained by the Attorney General or
a district attorney pursuant to this subparagraph shall be
confidential and used only for investigative or prosecutorial
purposes.
   (11) Section 6050J of the Internal Revenue Code, relating to
returns relating to foreclosures and abandonments of security.
   (12) (A) Section 6050K of the Internal Revenue Code, relating to
returns relating to exchanges of certain partnership interests.
   (B) In addition to the general requirement under subparagraph (A),
a transferor of a partnership interest shall be required to notify
the partnership of that exchange in accordance with Section 6050K(c)
of the Internal Revenue Code.
   (13) Section 6050L of the Internal Revenue Code, relating to
returns relating to certain donated property.
   (14) Section 6050N of the Internal Revenue Code, relating to
returns regarding payments of royalties.
   (15) Section 6050P of the Internal Revenue Code, relating to
returns relating to the cancellation of indebtedness by certain
entities.
   (16) Section 6050Q of the Internal Revenue Code, relating to
certain long-term care benefits.
   (17) Section 6050R of the Internal Revenue Code, relating to
returns relating to certain purchases of fish.
   (18) Section 6050S of the Internal Revenue Code, relating to
returns relating to higher education tuition and related expenses.
   (19) Section 6052 of the Internal Revenue Code, relating to
returns regarding payment of wages in the form of group-term life
insurance.
   (20) Section 6034(a) of the Internal Revenue Code, relating to
returns of split-interest trusts.
   (21) Section 6039I of the Internal Revenue Code, relating to
returns and records with respect to employer-owned life insurance
contracts.
   (22) Section 6039J of the Internal Revenue Code, relating to
information reporting with respect to commodity credit corporation
transactions.
   (23) Section 6050V of the Internal Revenue Code, relating to
returns relating to applicable insurance contracts in which certain
exempt organizations hold interests.
   (24) Section 6050W of the Internal Revenue Code, relating to
returns relating to payments made in settlement of payment card and
third party network transactions.
   (25) Any information return that is required to be filed with the
Secretary of the Treasury pursuant to a provision of Part III of
Subchapter A of Chapter 61 of Subtitle F (commencing with Section
6031) of the Internal Revenue Code that is added to the Internal
Revenue Code by a public law enacted on or after January 1, 2009.
   (d) Every person required to make a return under subdivision (b)
shall also furnish a statement to each person whose name is required
to be set forth in the return, as required to do so by the Internal
Revenue Code.



18631.7.  (a) Any check casher engaged in the trade or business of
cashing checks that, in the course of that trade or business, cashes
checks other than one-party checks, payroll checks, or government
checks totaling more than ten thousand dollars ($10,000) in one
transaction or two or more transactions for the same person within
the calendar year, shall file an informational return with the
Franchise Tax Board with respect to that transaction or transactions.
   (b) The return required in subdivision (a) shall be filed no later
than 90 days after the end of the calendar year and in the form and
manner prescribed by the Franchise Tax Board, and shall, at a
minimum, contain both of the following:
   (1) The name, address, taxpayer identification number, and any
other identifying information of the person presenting the check that
the Franchise Tax Board deems necessary.
   (2) The amount and date of the transaction or transactions.
   (c) For purposes of this section the following definitions apply:
   (1) Except as otherwise provided, "check casher" means a check
casher as defined under Section 1789.31 of the Civil Code.
   (2) "Checks" includes warrants, drafts, money orders, and other
commercial paper serving the same purposes, including payroll checks,
government checks, and one-party checks.
   (3) "Government check" means a check issued by a federal, state,
or local governmental entity and treated as a government check
pursuant to Section 1789.35 of the Civil Code for fee-setting
purposes.
   (4) "Payroll check" means a check for wages subject to withholding
pursuant to Section 13020 of the Unemployment Insurance Code and
treated as a payroll check pursuant to Section 1789.35 of the Civil
Code for fee-setting purposes.
   (5) "One-party check" means a check drawn upon the maker's account
and presented by the maker.
   (d) With respect to a person who fails to file the report required
by this section or fails to include all of the information required
to be shown on that report, both of the following apply:
   (1) Sections 6721 and 6724 of the Internal Revenue Code, as those
sections read on January 1, 2005, apply, except that the "Franchise
Tax Board" is substituted for the "secretary" in each place it
appears in those sections.
   (2) If the failure was willful, the person, upon conviction, shall
be punished by a fine of not more than twenty-five thousand dollars
($25,000) or, in the case of a corporation, not more than one hundred
thousand dollars ($100,000), by imprisonment in a county jail for
not more than one year, by imprisonment in the state prison, or by
both that fine and imprisonment, together with the costs of
prosecution.


18632.  Division 6 (commencing with Section 13000) of the
Unemployment Insurance Code sets forth provisions administered by the
Employment Development Department relating to the reporting,
collection, refunding to the employer, and enforcement of taxes
required to be withheld from wages paid by employers.



18633.  (a) (1) Every partnership, on or before the 15th day of the
fourth month following the close of its taxable year, shall make a
return for that taxable year, stating specifically the items of gross
income and the deductions allowed by Part 10 (commencing with
Section 17001). Except as otherwise provided in Section 18621.5, the
return shall include the names, addresses, and taxpayer
identification numbers of the persons, whether residents or
nonresidents, who would be entitled to share in the net income if
distributed and the amount of the distributive share of each person.
The return shall contain or be verified by a written declaration that
it is made under penalty of perjury, signed by one of the partners.
   (2) In addition to returns required by paragraph (1), every
limited partnership subject to the tax imposed by subdivision (b) of
Section 17935, on or before the 15th day of the fourth month
following the close of its taxable year, shall make a return for that
taxable year, containing the information identified in paragraph
(1). In the case of a limited partnership not doing business in this
state, the Franchise Tax Board shall prescribe the manner and extent
to which the information identified in paragraph (1) shall be
included with the return required by this paragraph.
   (b) Each partnership required to file a return under subdivision
(a) for any taxable year shall (on or before the day on which the
return for that taxable year was required to be filed) furnish to
each person who is a partner or who holds an interest in that
partnership as a nominee for another person at any time during that
taxable year a copy of the information required to be shown on that
return as may be required by regulations.
   (c) Any person who holds an interest in a partnership as a nominee
for another person shall do both of the following:
   (1) Furnish to the partnership, in the manner prescribed by the
Franchise Tax Board, the name, address, and taxpayer identification
number of that other person, and any other information for that
taxable year as the Franchise Tax Board may by form and regulation
prescribe.
   (2) Furnish to that other person, in the manner prescribed by the
Franchise Tax Board, the information provided by that partnership
under subdivision (b).
   (d) The provisions of Section 6031(d) of the Internal Revenue
Code, relating to the separate statement of items of unrelated
business taxable income, shall apply.
   (e) The provisions of Section 6031(f) of the Internal Revenue
Code, relating to electing investment partnerships, shall apply,
except as otherwise provided.


18633.5.  (a) Every limited liability company which is classified as
a partnership for California tax purposes that is doing business in
this state, organized in this state, or registered with the Secretary
of State shall file its return on or before the fifteenth day of the
fourth month following the close of its taxable year, stating
specifically the items of gross income and the deductions allowed by
Part 10 (commencing with Section 17001). The return shall include the
names, addresses, and taxpayer identification numbers of the
persons, whether residents or nonresidents, who would be entitled to
share in the net income if distributed and the amount of the
distributive share of each person. The return shall contain or be
verified by a written declaration that it is made under penalty of
perjury, signed by one of the limited liability company members. In
the case of a limited liability company not doing business in this
state, and subject to the tax imposed by subdivision (b) of Section
17941, the Franchise Tax Board shall, for returns required to be
filed on or after January 1, 1998, prescribe the manner and extent to
which the information identified in this subdivision shall be
included with the return required by this subdivision.
   (b) Each limited liability company required to file a return under
subdivision (a) for any limited liability company taxable year
shall, on or before the day on which the return for that taxable year
was required to be filed, furnish to each person who holds an
interest in that limited liability company at any time during that
taxable year a copy of that information required to be shown on that
return as may be required by forms and instructions prescribed by the
Franchise Tax Board.
   (c) Any person who holds an interest in a limited liability
company as a nominee for another person shall do both of the
following:
   (1) Furnish to the limited liability company, in the manner
prescribed by the Franchise Tax Board, the name, address, and
taxpayer identification number of that person, and any other
information for that taxable year as the Franchise Tax Board may
prescribe by forms and instructions.
   (2) Furnish to that other person, in the manner prescribed by the
Franchise Tax Board, the information provided by that limited
liability company under subdivision (b).
   (d) The provisions of Section 6031(d) of the Internal Revenue
Code, relating to the separate statement of items of unrelated
business taxable income, shall apply.
   (e) (1) A limited liability company shall file with its return
required under subdivision (a), in the form required by the Franchise
Tax Board, the agreement of each nonresident member to file a return
pursuant to Section 18501, to make timely payment of all taxes
imposed on the member by this state with respect to the income of the
limited liability company, and to be subject to personal
jurisdiction in this state for purposes of the collection of income
taxes, together with related interest and penalties, imposed on the
member by this state with respect to the income of the limited
liability company. If the limited liability company fails to timely
file the agreements on behalf of each of its nonresident members,
then the limited liability company shall, at the time set forth in
subdivision (f), pay to this state on behalf of each nonresident
member of whom an agreement has not been timely filed an amount equal
to the highest marginal tax rate in effect under Section 17041, in
the case of members which are individuals, estates, or trusts, and
Section 23151, in the case of members that are corporations,
multiplied by the amount of the member's distributive share of the
income source to the state reflected on the limited liability company'
s return for the taxable period, reduced by the amount of tax
previously withheld and paid by the limited liability company
pursuant to Section 18662 and the regulations thereunder with respect
to each nonresident member. A limited liability company shall be
entitled to recover the payment made from the member on whose behalf
the payment was made.
   (2) If a limited liability company fails to attach the agreement
or to timely pay the payment required by paragraph (1), the payment
shall be considered the tax of the limited liability company for
purposes of the penalty prescribed by Section 19132 and interest
prescribed by Section 19101 for failure to timely pay the tax.
Payment of the penalty and interest imposed on the limited liability
company for failure to timely pay the amount required by this
subdivision shall extinguish the liability of a nonresident member
for the penalty and interest for failure to make timely payment of
all taxes imposed on that member by this state with respect to the
income of the limited liability company.
   (3) No penalty or interest shall be imposed on the limited
liability company under paragraph (2) if the nonresident member
timely files and pays all taxes imposed on the member by this state
with respect to the income of the limited liability company.
   (f) Any agreement of a nonresident member required to be filed
pursuant to subdivision (e) shall be filed at either of the following
times:
   (1) The time the annual return is required to be filed pursuant to
this section for the first taxable period for which the limited
liability company became subject to tax pursuant to Chapter 10.6
(commencing with Section 17941).
   (2) The time the annual return is required to be filed pursuant to
this section for any taxable period in which the limited liability
company had a nonresident member on whose behalf an agreement
described in subdivision (e) has not been previously filed.
   (g) Any amount paid by the limited liability company to this state
pursuant to paragraph (1) of subdivision (e) shall be considered to
be a payment by the member on account of the income tax imposed by
this state on the member for the taxable period.
   (h) Every limited liability company that is classified as a
corporation for California tax purposes shall be subject to the
requirement to file a tax return under the provisions of Part 10.2
(commencing with Section 18401) and the applicable taxes imposed by
Part 11 (commencing with Section 23001).
   (i) (1) Every limited liability company doing business in this
state, organized in this state, or registered with the Secretary of
State, that is disregarded pursuant to Section 23038 shall file a
return that includes information necessary to verify its liability
under Sections 17941 and 17942, provides its sole owner's name and
taxpayer identification number, includes the consent of the owner to
California tax jurisdiction, and includes other information necessary
for the administration of this part, Part 10 (commencing with
Section 17001), or Part 11 (commencing with Section 23001).
   (2) If the owner's consent required under paragraph (1) is not
included, the limited liability company shall pay on behalf of its
owner an amount consistent with, and treated the same as, the amount
to be paid under subdivision (e) by a limited liability company on
behalf of a nonresident member for whom an agreement required by
subdivision (e) is not attached to the return of the limited
liability company.
   (3) The return required under paragraph (1) shall be filed on or
before the fifteenth day of the fourth month after the close of the
taxable year of the owner subject to tax under Part 10 (commencing
with Section 17001) of Division 2 or on or before the fifteenth day
of the third month after the close of the taxable year of the owner
subject to tax under Chapter 2 (commencing with Section 23101) of
Part 11 of Division 2, whichever is applicable.
   (4) For limited liability companies disregarded pursuant to
Section 23038, "taxable year of the owner" shall be substituted for
"taxable year" in Sections 17941 and 17942.
   (j) The amendments made by the act adding this subdivision apply
to taxable years beginning on or after January 1, 2005.



18635.  Every trust claiming a charitable, religious, scientific,
literary, or educational deduction under Section 642(c) of the
Internal Revenue Code for the taxable year shall furnish information
with respect to the taxable year, at the time and in the manner as
the Franchise Tax Board may by regulations prescribe, setting forth
all of the following:
   (a) The amount of the charitable, religious, scientific, literary,
or educational deduction taken under Section 642(c) of the Internal
Revenue Code within that year (showing separately the amount of the
deduction which was paid out and the amount which was permanently set
aside for charitable, religious, scientific, literary, or
educational purposes during that year).
   (b) The amount paid out within that year which represents amounts
for which charitable, religious, scientific, literary, or educational
deductions under Section 642(c) of the Internal Revenue Code have
been taken in prior years.
   (c) The amount for which charitable, religious, scientific,
literary, or educational deductions have been taken in prior years
but which has not been paid out at the beginning of that year.
   (d) The amount paid out of principal in the current and prior
years for charitable, religious, scientific, literary, or educational
purposes.
   (e) The total income of the trust within that year and the
expenses attributable thereto.
   (f) A balance sheet showing the assets, liabilities, and net worth
of the trust as of the beginning of that year.
   This section shall not apply in the case of a taxable year if all
the taxable income for that year, determined under the applicable
principles of the law of trusts, is required to be distributed
currently to the beneficiaries.



18635.5.  (a) Section 6034A of the Internal Revenue Code, relating
to information to beneficiaries of estates and trusts, shall apply,
except as otherwise provided.
   (b) Section 6034A(a) is modified to refer to Section 18505 in lieu
of Section 6012(a) of the Internal Revenue Code.
   (c) Section 6034A(c)(3) is modified to refer to Section 19051 in
lieu of Section 6213(b)(1) of the Internal Revenue Code.
   (d) Section 6034A(c)(5) is modified to refer to Article 7 of
Chapter 4 of this part in lieu of Part II of Subchapter A of Chapter
68 of the Internal Revenue Code.



18639.  (a) (1) In addition to those reports required under
paragraph (8) of subdivision (c) of Section 18631, information
returns shall be required, at the time and in the form and manner and
to the extent that the Franchise Tax Board may prescribe, from both
of the following:
   (A) Every person who makes payments of exempt-interest dividends,
as described in Section 852(b)(5) of the Internal Revenue Code, that
are not exempt-interest dividends, as described in Section 17145 of
the Revenue and Taxation Code, aggregating ten dollars ($10) or more
to any person, other than to any person described in paragraph (2),
during any calendar year.
   (B) Every person who receives payments of interest as a nominee
and who makes payments aggregating ten dollars ($10) or more during
any calendar year to any other person, other than to any person
described in paragraph (2), with respect to the interest so received.
For purposes of this paragraph, "interest" is limited to interest on
any obligation if the interest is exempt from tax under Section 103
(a) of the Internal Revenue Code or if the interest is exempt from
tax, without regard to the identity of the holder, under any other
provision of Title 26 of the United States Code, but which is not
exempt from income tax under Part 10 (commencing with Section 17001).
   (2) For purposes of this subdivision, a person shall not be
required to make a report pursuant to paragraph (1) if the person
receiving the payment is any of the following:
   (A) A corporation.
   (B) An organization exempt from taxation under Section 23701 or an
individual retirement plan.
   (C) The United States or any wholly owned agency or
instrumentality thereof.
   (D) A state, the District of Columbia, a possession of the United
States, any political subdivision of any of the foregoing, or any
wholly owned agency or instrumentality of any one or more of the
foregoing.
   (E) A foreign government, a political subdivision of a foreign
government, or any wholly owned agency or instrumentality of any one
or more of the foregoing.
   (F) An international organization or any wholly owned agency or
instrumentality thereof.
   (G) A foreign central bank of issue.
   (H) A dealer in securities or commodities required to register
under the laws of the United States or a state, the District of
Columbia, or possession of the United States.
   (I) A real estate investment trust, as defined in Section 856 of
the Internal Revenue Code.
   (J) An investment company, as defined in Section 80a-3 of the
United States Code, registered at all times during the taxable year
under the Investment Company Act of 1940.
   (K) A common trust fund, as defined in Section 17671.
   (L) Any trust that is exempt from tax under Section 664(c) of
Title 15 of the Internal Revenue Code.
   (b) Every person required to make a return under this section
shall also furnish a statement to each person whose name is set forth
in the return, as required to do so by the Internal Revenue Code.



18640.  (a) Any corporation allocating amounts as patronage
dividends, rebates, or refunds (whether in cash, merchandise, capital
stock, revolving fund certificates, retain certificates,
certificates of indebtedness, letters of advice, or in some other
manner that discloses to each patron the amount of the dividend,
refund, or rebate) shall render a correct return that shall contain
or be verified by a written declaration that it is made under the
penalty of perjury, stating both of the following:
   (1) The name and address of each patron to whom it has made those
allocations amounting to one hundred dollars ($100) or more during
the calendar year.
   (2) The amount of those allocations to each patron.
   If required by the Franchise Tax Board, any corporation described
in this subdivision shall render a correct return, which shall
contain or be verified by a written declaration that it is under
penalty of perjury, of all patronage dividends, rebates, or refunds
made during the calendar year to its patrons. This section shall not
apply in the case of any corporation exempt from tax under Article 1
(commencing with Section 23701) of Chapter 4 of Part 11.
   (b) Every cooperative required to make a return under subdivision
(a) shall furnish to each person whose name is required to be set
forth in that return a written statement showing both of the
following:
   (1) The name, address, and telephone number of the cooperative
required to make that return.
   (2) The aggregate amount of the allocations required to be made to
the person as shown on that return.
   (c) The written statement required under subdivision (b) shall be
furnished (either in person or in a separate mailing by first-class
mail which includes adequate notice that the statement is enclosed)
to the person on or before January 31 of the year following the
calendar year for which the return under subdivision (a) was required
to be made, and shall be in the form which the Franchise Tax Board
may prescribe.
   (d) The amendments made by this act adding this subdivision are
operative for information returns required to be filed on or after
January 1, 1999.


18642.  (a) All owners and transferors of an interest in real
property or a mobilehome shall file a return upon written request by
the Franchise Tax Board which includes a social security number or
other identification number prescribed by the Franchise Tax Board,
identification of the property interest, and any other pertinent
information about the interest requested by the Franchise Tax Board.
   (b) Subdivision (a) shall not apply to any of the following:
   (1) Property granted a homeowner's property tax exemption.
   (2) Property which is not assessed by a California county
assessor.
   (c) Owners and transferors failing to file a return required by
subdivision (a) on or before the due date of the return shall be
subject to the penalty provided by Section 19183, unless the failure
is due to reasonable cause and not due to willful neglect.
   (d) Owners failing to file a return required by subdivision (a)
within 60 days of the due date of the return shall be subject to the
sanctions provided by Section 17299.9 disallowing certain expenses
related to the property for which a return is required, unless it is
shown that the failure is due to reasonable cause and not due to
willful neglect.
   (e) The Franchise Tax Board shall mail to each owner and
transferor required to file a return pursuant to subdivision (a) a
notice at least 60 days prior to the due date of the return. The
notice shall be in a form and shall include any information which the
Franchise Tax Board prescribes and shall advise owners and
transferors of all of the following:
   (1) The requirement to provide the Franchise Tax Board with a
social security number or other identification number prescribed by
the Franchise Tax Board.
   (2) When the statement is due.
   (3) A general description of the tax consequences of not providing
the requested information.
   (f) The social security number or other identification number
furnished pursuant to this section shall be used exclusively for tax
administration purposes. It is the intent of the Legislature in
enacting this section to utilize the social security number or other
identification number for the sole purpose of establishing the
identification of individuals or entities affected by state tax laws.




18644.  (a) The operator of a boat on which one or more individuals,
during a calendar year, perform services described in subdivision
(o) of Section 13009 of the Unemployment Insurance Code shall submit
to the Franchise Tax Board (at the time, and in the manner and form,
as the Franchise Tax Board shall by regulations prescribe)
information respecting all of the following:
   (1) The identity of each individual performing those services.
   (2) The percentage of each individual's share of the catches of
fish or other forms of aquatic animal life, and the percentage of the
operator's share of those catches.
   (3) If that individual receives his or her share in kind, the type
and weight of that share, together with the other information as the
Franchise Tax Board may prescribe by regulations reasonably
necessary to determine the value of those shares.
   (4) If that individual receives a share of the proceeds of those
catches, the amount so received.
   (b) Every person required to make a return under subdivision (a)
shall furnish to each person whose name is required to be set forth
in that return a written statement showing the information relating
to that person contained in that return. The written statement
required under the preceding sentence shall be furnished to the
person on or before January 31 of the year following the calendar
year for which the return under subdivision (a) was required to be
made.


18646.  (a) The head of every state agency (as defined by Section
11000 of the Government Code) entering into any contract shall make a
return (at the time and in the form the Franchise Tax Board may by
regulation prescribe) setting forth all of the following:
   (1) The name, address, type of business entity, and taxpayer
identification number of each person with which that agency entered
into a contract during the calendar year.
   (2) Any other information the Franchise Tax Board may require.
   (b) The Franchise Tax Board may provide that this section also
shall apply to any of the following:
   (1) Licenses granted by state agencies.
   (2) Subcontracts under contracts to which subdivision (a) applies.
   (c) This section shall not apply to contracts or licenses in any
class which are below a minimum amount or value which may be
determined by the Franchise Tax Board for that class.



18648.  (a) Section 6112 of the Internal Revenue Code, relating to
material advisors of reportable transactions that must keep lists of
advisees, applies except as otherwise provided.
   (b) Section 6112 of the Internal Revenue Code is modified by
substituting the phrase "Secretary or the Franchise Tax Board" for
the word "Secretary" each place it appears.
   (c) The requirement to maintain lists under this section shall
apply to any material advisor, as defined in Section 6111 of the
Internal Revenue Code, with respect to any reportable transaction, as
defined in Section 6707A(c) of the Internal Revenue Code and
regardless of whether a return is required to be filed under Section
18628 with respect to that reportable transaction and with respect to
a material advisor that satisfies any of the following conditions:
   (1) Is organized in this state.
   (2) Is doing business in this state.
   (3) Derives income from sources in this state.
   (4) Provides any material aid, assistance, or advice with respect
to organizing, managing, promoting, selling, implementing, insuring,
or carrying out any reportable transaction with respect to a taxpayer
that meets any of the following conditions:
   (A) Is organized in this state.
   (B) Does business in this state.
   (C) Derives income from sources in this state.
   (d) (1) In addition to any regulation issued under Section 6112 of
the Internal Revenue Code, the list required to be maintained by
this section for listed transactions, as defined in Section 6707A(c)
(2) of the Internal Revenue Code, shall be maintained in the form and
manner prescribed by the Franchise Tax Board.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
requirement prescribed by the Franchise Tax Board under this section.
   (3) For transactions entered into on or after February 28, 2000,
that become listed transactions (as defined under Section 6707A(c)(2)
of the Internal Revenue Code) at any time, the lists shall be
provided to the Franchise Tax Board by the later of:
   (A) Sixty days after entering into the transaction.
   (B) Sixty days after the transaction becomes a listed transaction.
   (4) For transactions entered into on or after September 2, 2003,
that are specifically identified by the Franchise Tax Board for
California income or franchise tax purposes (under the authority of
paragraph (4) of subdivision (a) of Section 18407) as a "listed
transaction" at any time, the list shall be provided to the Franchise
Tax Board by the later of:
   (A) Sixty days after entering into the transaction.
   (B) Sixty days after the transaction becomes a listed transaction.



18648.5.  (a) Section 6115 of the Internal Revenue Code, relating to
disclosure related to quid pro quo contributions, shall apply,
except as otherwise provided.
   (b) The requirements of subdivision (a) shall be treated as being
satisfied upon a showing that the requirements in Section 6115 of the
Internal Revenue Code have been met with respect to that
contribution for federal purposes.
   (c) The provisions of this section shall apply to quid pro quo
contributions made on or after January 1, 1997.



18649.  A copy of the information furnished pursuant to Section 1275
(c)(2) of the Internal Revenue Code shall be provided to the
Franchise Tax Board by any issuer subject to tax under this part at
the time and in the manner required by the Franchise Tax Board.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Rtc > 18631-18649

REVENUE AND TAXATION CODE
SECTION 18631-18649



18631.  (a) This article does not apply to any payment of interest
obligations not taxable under Part 10 (commencing with Section 17001)
or Part 11 (commencing with Section 23001).
   (b) Except as otherwise provided, every person required to file an
information return with the Secretary of the Treasury under any of
the federal sections listed in subdivision (c) may be required to
file a copy of the federal information return with the Franchise Tax
Board at the time and in the manner as it may, by forms and
instructions, require.
   (c) Subdivision (b) shall apply to each of the following:
   (1) Section 6034A of the Internal Revenue Code, relating to
information to beneficiaries of estates and trusts.
   (2) Section 6039 of the Internal Revenue Code, relating to returns
required in connection with certain options.
   (3) Section 6039C of the Internal Revenue Code, relating to
returns with respect to foreign persons holding direct investments in
United States real property interests, if that person holds a direct
investment in a California real property as defined in Section
18662.
   (4) Section 6041 of the Internal Revenue Code, relating to
information at source.
   (5) Section 6041A of the Internal Revenue Code, relating to
returns regarding payments of remuneration for services and direct
sales, except that no return or statement shall be required with
respect to direct sales pursuant to Section 6041A(b) of the Internal
Revenue Code.
   (6) Section 6042 of the Internal Revenue Code, relating to returns
regarding payments of dividends and corporate earnings and profits.
   (7) Section 6045 of the Internal Revenue Code, relating to returns
of brokers.
   (8) Section 6049 of the Internal Revenue Code, relating to returns
regarding payments of interest.
   (9) Section 6050H of the Internal Revenue Code, relating to
returns relating to mortgage interest received in trade or business
from individuals.
   (10) (A) Section 6050I of the Internal Revenue Code, relating to
returns relating to cash received in trade or business, etc., except
that Section 6050I(g) of the Internal Revenue Code, relating to cash
received by criminal court, shall not apply.
   (B) (i) The Attorney General shall, upon court order following a
showing ex parte to a magistrate of an articulable suspicion that an
individual or entity has committed a felony offense to which a
federal information return is related, be provided a copy of a
federal information return filed with the Franchise Tax Board under
this paragraph. The Attorney General may make a return or information
therefrom available to a district attorney subject to regulations
promulgated by the Attorney General. The regulations shall require
the district attorney seeking the return or information to specify in
writing the specific reasons for believing that a felony offense has
been committed to which the return or information is related.
   (ii) Any information or return obtained by the Attorney General or
a district attorney pursuant to this subparagraph shall be
confidential and used only for investigative or prosecutorial
purposes.
   (11) Section 6050J of the Internal Revenue Code, relating to
returns relating to foreclosures and abandonments of security.
   (12) (A) Section 6050K of the Internal Revenue Code, relating to
returns relating to exchanges of certain partnership interests.
   (B) In addition to the general requirement under subparagraph (A),
a transferor of a partnership interest shall be required to notify
the partnership of that exchange in accordance with Section 6050K(c)
of the Internal Revenue Code.
   (13) Section 6050L of the Internal Revenue Code, relating to
returns relating to certain donated property.
   (14) Section 6050N of the Internal Revenue Code, relating to
returns regarding payments of royalties.
   (15) Section 6050P of the Internal Revenue Code, relating to
returns relating to the cancellation of indebtedness by certain
entities.
   (16) Section 6050Q of the Internal Revenue Code, relating to
certain long-term care benefits.
   (17) Section 6050R of the Internal Revenue Code, relating to
returns relating to certain purchases of fish.
   (18) Section 6050S of the Internal Revenue Code, relating to
returns relating to higher education tuition and related expenses.
   (19) Section 6052 of the Internal Revenue Code, relating to
returns regarding payment of wages in the form of group-term life
insurance.
   (20) Section 6034(a) of the Internal Revenue Code, relating to
returns of split-interest trusts.
   (21) Section 6039I of the Internal Revenue Code, relating to
returns and records with respect to employer-owned life insurance
contracts.
   (22) Section 6039J of the Internal Revenue Code, relating to
information reporting with respect to commodity credit corporation
transactions.
   (23) Section 6050V of the Internal Revenue Code, relating to
returns relating to applicable insurance contracts in which certain
exempt organizations hold interests.
   (24) Section 6050W of the Internal Revenue Code, relating to
returns relating to payments made in settlement of payment card and
third party network transactions.
   (25) Any information return that is required to be filed with the
Secretary of the Treasury pursuant to a provision of Part III of
Subchapter A of Chapter 61 of Subtitle F (commencing with Section
6031) of the Internal Revenue Code that is added to the Internal
Revenue Code by a public law enacted on or after January 1, 2009.
   (d) Every person required to make a return under subdivision (b)
shall also furnish a statement to each person whose name is required
to be set forth in the return, as required to do so by the Internal
Revenue Code.



18631.7.  (a) Any check casher engaged in the trade or business of
cashing checks that, in the course of that trade or business, cashes
checks other than one-party checks, payroll checks, or government
checks totaling more than ten thousand dollars ($10,000) in one
transaction or two or more transactions for the same person within
the calendar year, shall file an informational return with the
Franchise Tax Board with respect to that transaction or transactions.
   (b) The return required in subdivision (a) shall be filed no later
than 90 days after the end of the calendar year and in the form and
manner prescribed by the Franchise Tax Board, and shall, at a
minimum, contain both of the following:
   (1) The name, address, taxpayer identification number, and any
other identifying information of the person presenting the check that
the Franchise Tax Board deems necessary.
   (2) The amount and date of the transaction or transactions.
   (c) For purposes of this section the following definitions apply:
   (1) Except as otherwise provided, "check casher" means a check
casher as defined under Section 1789.31 of the Civil Code.
   (2) "Checks" includes warrants, drafts, money orders, and other
commercial paper serving the same purposes, including payroll checks,
government checks, and one-party checks.
   (3) "Government check" means a check issued by a federal, state,
or local governmental entity and treated as a government check
pursuant to Section 1789.35 of the Civil Code for fee-setting
purposes.
   (4) "Payroll check" means a check for wages subject to withholding
pursuant to Section 13020 of the Unemployment Insurance Code and
treated as a payroll check pursuant to Section 1789.35 of the Civil
Code for fee-setting purposes.
   (5) "One-party check" means a check drawn upon the maker's account
and presented by the maker.
   (d) With respect to a person who fails to file the report required
by this section or fails to include all of the information required
to be shown on that report, both of the following apply:
   (1) Sections 6721 and 6724 of the Internal Revenue Code, as those
sections read on January 1, 2005, apply, except that the "Franchise
Tax Board" is substituted for the "secretary" in each place it
appears in those sections.
   (2) If the failure was willful, the person, upon conviction, shall
be punished by a fine of not more than twenty-five thousand dollars
($25,000) or, in the case of a corporation, not more than one hundred
thousand dollars ($100,000), by imprisonment in a county jail for
not more than one year, by imprisonment in the state prison, or by
both that fine and imprisonment, together with the costs of
prosecution.


18632.  Division 6 (commencing with Section 13000) of the
Unemployment Insurance Code sets forth provisions administered by the
Employment Development Department relating to the reporting,
collection, refunding to the employer, and enforcement of taxes
required to be withheld from wages paid by employers.



18633.  (a) (1) Every partnership, on or before the 15th day of the
fourth month following the close of its taxable year, shall make a
return for that taxable year, stating specifically the items of gross
income and the deductions allowed by Part 10 (commencing with
Section 17001). Except as otherwise provided in Section 18621.5, the
return shall include the names, addresses, and taxpayer
identification numbers of the persons, whether residents or
nonresidents, who would be entitled to share in the net income if
distributed and the amount of the distributive share of each person.
The return shall contain or be verified by a written declaration that
it is made under penalty of perjury, signed by one of the partners.
   (2) In addition to returns required by paragraph (1), every
limited partnership subject to the tax imposed by subdivision (b) of
Section 17935, on or before the 15th day of the fourth month
following the close of its taxable year, shall make a return for that
taxable year, containing the information identified in paragraph
(1). In the case of a limited partnership not doing business in this
state, the Franchise Tax Board shall prescribe the manner and extent
to which the information identified in paragraph (1) shall be
included with the return required by this paragraph.
   (b) Each partnership required to file a return under subdivision
(a) for any taxable year shall (on or before the day on which the
return for that taxable year was required to be filed) furnish to
each person who is a partner or who holds an interest in that
partnership as a nominee for another person at any time during that
taxable year a copy of the information required to be shown on that
return as may be required by regulations.
   (c) Any person who holds an interest in a partnership as a nominee
for another person shall do both of the following:
   (1) Furnish to the partnership, in the manner prescribed by the
Franchise Tax Board, the name, address, and taxpayer identification
number of that other person, and any other information for that
taxable year as the Franchise Tax Board may by form and regulation
prescribe.
   (2) Furnish to that other person, in the manner prescribed by the
Franchise Tax Board, the information provided by that partnership
under subdivision (b).
   (d) The provisions of Section 6031(d) of the Internal Revenue
Code, relating to the separate statement of items of unrelated
business taxable income, shall apply.
   (e) The provisions of Section 6031(f) of the Internal Revenue
Code, relating to electing investment partnerships, shall apply,
except as otherwise provided.


18633.5.  (a) Every limited liability company which is classified as
a partnership for California tax purposes that is doing business in
this state, organized in this state, or registered with the Secretary
of State shall file its return on or before the fifteenth day of the
fourth month following the close of its taxable year, stating
specifically the items of gross income and the deductions allowed by
Part 10 (commencing with Section 17001). The return shall include the
names, addresses, and taxpayer identification numbers of the
persons, whether residents or nonresidents, who would be entitled to
share in the net income if distributed and the amount of the
distributive share of each person. The return shall contain or be
verified by a written declaration that it is made under penalty of
perjury, signed by one of the limited liability company members. In
the case of a limited liability company not doing business in this
state, and subject to the tax imposed by subdivision (b) of Section
17941, the Franchise Tax Board shall, for returns required to be
filed on or after January 1, 1998, prescribe the manner and extent to
which the information identified in this subdivision shall be
included with the return required by this subdivision.
   (b) Each limited liability company required to file a return under
subdivision (a) for any limited liability company taxable year
shall, on or before the day on which the return for that taxable year
was required to be filed, furnish to each person who holds an
interest in that limited liability company at any time during that
taxable year a copy of that information required to be shown on that
return as may be required by forms and instructions prescribed by the
Franchise Tax Board.
   (c) Any person who holds an interest in a limited liability
company as a nominee for another person shall do both of the
following:
   (1) Furnish to the limited liability company, in the manner
prescribed by the Franchise Tax Board, the name, address, and
taxpayer identification number of that person, and any other
information for that taxable year as the Franchise Tax Board may
prescribe by forms and instructions.
   (2) Furnish to that other person, in the manner prescribed by the
Franchise Tax Board, the information provided by that limited
liability company under subdivision (b).
   (d) The provisions of Section 6031(d) of the Internal Revenue
Code, relating to the separate statement of items of unrelated
business taxable income, shall apply.
   (e) (1) A limited liability company shall file with its return
required under subdivision (a), in the form required by the Franchise
Tax Board, the agreement of each nonresident member to file a return
pursuant to Section 18501, to make timely payment of all taxes
imposed on the member by this state with respect to the income of the
limited liability company, and to be subject to personal
jurisdiction in this state for purposes of the collection of income
taxes, together with related interest and penalties, imposed on the
member by this state with respect to the income of the limited
liability company. If the limited liability company fails to timely
file the agreements on behalf of each of its nonresident members,
then the limited liability company shall, at the time set forth in
subdivision (f), pay to this state on behalf of each nonresident
member of whom an agreement has not been timely filed an amount equal
to the highest marginal tax rate in effect under Section 17041, in
the case of members which are individuals, estates, or trusts, and
Section 23151, in the case of members that are corporations,
multiplied by the amount of the member's distributive share of the
income source to the state reflected on the limited liability company'
s return for the taxable period, reduced by the amount of tax
previously withheld and paid by the limited liability company
pursuant to Section 18662 and the regulations thereunder with respect
to each nonresident member. A limited liability company shall be
entitled to recover the payment made from the member on whose behalf
the payment was made.
   (2) If a limited liability company fails to attach the agreement
or to timely pay the payment required by paragraph (1), the payment
shall be considered the tax of the limited liability company for
purposes of the penalty prescribed by Section 19132 and interest
prescribed by Section 19101 for failure to timely pay the tax.
Payment of the penalty and interest imposed on the limited liability
company for failure to timely pay the amount required by this
subdivision shall extinguish the liability of a nonresident member
for the penalty and interest for failure to make timely payment of
all taxes imposed on that member by this state with respect to the
income of the limited liability company.
   (3) No penalty or interest shall be imposed on the limited
liability company under paragraph (2) if the nonresident member
timely files and pays all taxes imposed on the member by this state
with respect to the income of the limited liability company.
   (f) Any agreement of a nonresident member required to be filed
pursuant to subdivision (e) shall be filed at either of the following
times:
   (1) The time the annual return is required to be filed pursuant to
this section for the first taxable period for which the limited
liability company became subject to tax pursuant to Chapter 10.6
(commencing with Section 17941).
   (2) The time the annual return is required to be filed pursuant to
this section for any taxable period in which the limited liability
company had a nonresident member on whose behalf an agreement
described in subdivision (e) has not been previously filed.
   (g) Any amount paid by the limited liability company to this state
pursuant to paragraph (1) of subdivision (e) shall be considered to
be a payment by the member on account of the income tax imposed by
this state on the member for the taxable period.
   (h) Every limited liability company that is classified as a
corporation for California tax purposes shall be subject to the
requirement to file a tax return under the provisions of Part 10.2
(commencing with Section 18401) and the applicable taxes imposed by
Part 11 (commencing with Section 23001).
   (i) (1) Every limited liability company doing business in this
state, organized in this state, or registered with the Secretary of
State, that is disregarded pursuant to Section 23038 shall file a
return that includes information necessary to verify its liability
under Sections 17941 and 17942, provides its sole owner's name and
taxpayer identification number, includes the consent of the owner to
California tax jurisdiction, and includes other information necessary
for the administration of this part, Part 10 (commencing with
Section 17001), or Part 11 (commencing with Section 23001).
   (2) If the owner's consent required under paragraph (1) is not
included, the limited liability company shall pay on behalf of its
owner an amount consistent with, and treated the same as, the amount
to be paid under subdivision (e) by a limited liability company on
behalf of a nonresident member for whom an agreement required by
subdivision (e) is not attached to the return of the limited
liability company.
   (3) The return required under paragraph (1) shall be filed on or
before the fifteenth day of the fourth month after the close of the
taxable year of the owner subject to tax under Part 10 (commencing
with Section 17001) of Division 2 or on or before the fifteenth day
of the third month after the close of the taxable year of the owner
subject to tax under Chapter 2 (commencing with Section 23101) of
Part 11 of Division 2, whichever is applicable.
   (4) For limited liability companies disregarded pursuant to
Section 23038, "taxable year of the owner" shall be substituted for
"taxable year" in Sections 17941 and 17942.
   (j) The amendments made by the act adding this subdivision apply
to taxable years beginning on or after January 1, 2005.



18635.  Every trust claiming a charitable, religious, scientific,
literary, or educational deduction under Section 642(c) of the
Internal Revenue Code for the taxable year shall furnish information
with respect to the taxable year, at the time and in the manner as
the Franchise Tax Board may by regulations prescribe, setting forth
all of the following:
   (a) The amount of the charitable, religious, scientific, literary,
or educational deduction taken under Section 642(c) of the Internal
Revenue Code within that year (showing separately the amount of the
deduction which was paid out and the amount which was permanently set
aside for charitable, religious, scientific, literary, or
educational purposes during that year).
   (b) The amount paid out within that year which represents amounts
for which charitable, religious, scientific, literary, or educational
deductions under Section 642(c) of the Internal Revenue Code have
been taken in prior years.
   (c) The amount for which charitable, religious, scientific,
literary, or educational deductions have been taken in prior years
but which has not been paid out at the beginning of that year.
   (d) The amount paid out of principal in the current and prior
years for charitable, religious, scientific, literary, or educational
purposes.
   (e) The total income of the trust within that year and the
expenses attributable thereto.
   (f) A balance sheet showing the assets, liabilities, and net worth
of the trust as of the beginning of that year.
   This section shall not apply in the case of a taxable year if all
the taxable income for that year, determined under the applicable
principles of the law of trusts, is required to be distributed
currently to the beneficiaries.



18635.5.  (a) Section 6034A of the Internal Revenue Code, relating
to information to beneficiaries of estates and trusts, shall apply,
except as otherwise provided.
   (b) Section 6034A(a) is modified to refer to Section 18505 in lieu
of Section 6012(a) of the Internal Revenue Code.
   (c) Section 6034A(c)(3) is modified to refer to Section 19051 in
lieu of Section 6213(b)(1) of the Internal Revenue Code.
   (d) Section 6034A(c)(5) is modified to refer to Article 7 of
Chapter 4 of this part in lieu of Part II of Subchapter A of Chapter
68 of the Internal Revenue Code.



18639.  (a) (1) In addition to those reports required under
paragraph (8) of subdivision (c) of Section 18631, information
returns shall be required, at the time and in the form and manner and
to the extent that the Franchise Tax Board may prescribe, from both
of the following:
   (A) Every person who makes payments of exempt-interest dividends,
as described in Section 852(b)(5) of the Internal Revenue Code, that
are not exempt-interest dividends, as described in Section 17145 of
the Revenue and Taxation Code, aggregating ten dollars ($10) or more
to any person, other than to any person described in paragraph (2),
during any calendar year.
   (B) Every person who receives payments of interest as a nominee
and who makes payments aggregating ten dollars ($10) or more during
any calendar year to any other person, other than to any person
described in paragraph (2), with respect to the interest so received.
For purposes of this paragraph, "interest" is limited to interest on
any obligation if the interest is exempt from tax under Section 103
(a) of the Internal Revenue Code or if the interest is exempt from
tax, without regard to the identity of the holder, under any other
provision of Title 26 of the United States Code, but which is not
exempt from income tax under Part 10 (commencing with Section 17001).
   (2) For purposes of this subdivision, a person shall not be
required to make a report pursuant to paragraph (1) if the person
receiving the payment is any of the following:
   (A) A corporation.
   (B) An organization exempt from taxation under Section 23701 or an
individual retirement plan.
   (C) The United States or any wholly owned agency or
instrumentality thereof.
   (D) A state, the District of Columbia, a possession of the United
States, any political subdivision of any of the foregoing, or any
wholly owned agency or instrumentality of any one or more of the
foregoing.
   (E) A foreign government, a political subdivision of a foreign
government, or any wholly owned agency or instrumentality of any one
or more of the foregoing.
   (F) An international organization or any wholly owned agency or
instrumentality thereof.
   (G) A foreign central bank of issue.
   (H) A dealer in securities or commodities required to register
under the laws of the United States or a state, the District of
Columbia, or possession of the United States.
   (I) A real estate investment trust, as defined in Section 856 of
the Internal Revenue Code.
   (J) An investment company, as defined in Section 80a-3 of the
United States Code, registered at all times during the taxable year
under the Investment Company Act of 1940.
   (K) A common trust fund, as defined in Section 17671.
   (L) Any trust that is exempt from tax under Section 664(c) of
Title 15 of the Internal Revenue Code.
   (b) Every person required to make a return under this section
shall also furnish a statement to each person whose name is set forth
in the return, as required to do so by the Internal Revenue Code.



18640.  (a) Any corporation allocating amounts as patronage
dividends, rebates, or refunds (whether in cash, merchandise, capital
stock, revolving fund certificates, retain certificates,
certificates of indebtedness, letters of advice, or in some other
manner that discloses to each patron the amount of the dividend,
refund, or rebate) shall render a correct return that shall contain
or be verified by a written declaration that it is made under the
penalty of perjury, stating both of the following:
   (1) The name and address of each patron to whom it has made those
allocations amounting to one hundred dollars ($100) or more during
the calendar year.
   (2) The amount of those allocations to each patron.
   If required by the Franchise Tax Board, any corporation described
in this subdivision shall render a correct return, which shall
contain or be verified by a written declaration that it is under
penalty of perjury, of all patronage dividends, rebates, or refunds
made during the calendar year to its patrons. This section shall not
apply in the case of any corporation exempt from tax under Article 1
(commencing with Section 23701) of Chapter 4 of Part 11.
   (b) Every cooperative required to make a return under subdivision
(a) shall furnish to each person whose name is required to be set
forth in that return a written statement showing both of the
following:
   (1) The name, address, and telephone number of the cooperative
required to make that return.
   (2) The aggregate amount of the allocations required to be made to
the person as shown on that return.
   (c) The written statement required under subdivision (b) shall be
furnished (either in person or in a separate mailing by first-class
mail which includes adequate notice that the statement is enclosed)
to the person on or before January 31 of the year following the
calendar year for which the return under subdivision (a) was required
to be made, and shall be in the form which the Franchise Tax Board
may prescribe.
   (d) The amendments made by this act adding this subdivision are
operative for information returns required to be filed on or after
January 1, 1999.


18642.  (a) All owners and transferors of an interest in real
property or a mobilehome shall file a return upon written request by
the Franchise Tax Board which includes a social security number or
other identification number prescribed by the Franchise Tax Board,
identification of the property interest, and any other pertinent
information about the interest requested by the Franchise Tax Board.
   (b) Subdivision (a) shall not apply to any of the following:
   (1) Property granted a homeowner's property tax exemption.
   (2) Property which is not assessed by a California county
assessor.
   (c) Owners and transferors failing to file a return required by
subdivision (a) on or before the due date of the return shall be
subject to the penalty provided by Section 19183, unless the failure
is due to reasonable cause and not due to willful neglect.
   (d) Owners failing to file a return required by subdivision (a)
within 60 days of the due date of the return shall be subject to the
sanctions provided by Section 17299.9 disallowing certain expenses
related to the property for which a return is required, unless it is
shown that the failure is due to reasonable cause and not due to
willful neglect.
   (e) The Franchise Tax Board shall mail to each owner and
transferor required to file a return pursuant to subdivision (a) a
notice at least 60 days prior to the due date of the return. The
notice shall be in a form and shall include any information which the
Franchise Tax Board prescribes and shall advise owners and
transferors of all of the following:
   (1) The requirement to provide the Franchise Tax Board with a
social security number or other identification number prescribed by
the Franchise Tax Board.
   (2) When the statement is due.
   (3) A general description of the tax consequences of not providing
the requested information.
   (f) The social security number or other identification number
furnished pursuant to this section shall be used exclusively for tax
administration purposes. It is the intent of the Legislature in
enacting this section to utilize the social security number or other
identification number for the sole purpose of establishing the
identification of individuals or entities affected by state tax laws.




18644.  (a) The operator of a boat on which one or more individuals,
during a calendar year, perform services described in subdivision
(o) of Section 13009 of the Unemployment Insurance Code shall submit
to the Franchise Tax Board (at the time, and in the manner and form,
as the Franchise Tax Board shall by regulations prescribe)
information respecting all of the following:
   (1) The identity of each individual performing those services.
   (2) The percentage of each individual's share of the catches of
fish or other forms of aquatic animal life, and the percentage of the
operator's share of those catches.
   (3) If that individual receives his or her share in kind, the type
and weight of that share, together with the other information as the
Franchise Tax Board may prescribe by regulations reasonably
necessary to determine the value of those shares.
   (4) If that individual receives a share of the proceeds of those
catches, the amount so received.
   (b) Every person required to make a return under subdivision (a)
shall furnish to each person whose name is required to be set forth
in that return a written statement showing the information relating
to that person contained in that return. The written statement
required under the preceding sentence shall be furnished to the
person on or before January 31 of the year following the calendar
year for which the return under subdivision (a) was required to be
made.


18646.  (a) The head of every state agency (as defined by Section
11000 of the Government Code) entering into any contract shall make a
return (at the time and in the form the Franchise Tax Board may by
regulation prescribe) setting forth all of the following:
   (1) The name, address, type of business entity, and taxpayer
identification number of each person with which that agency entered
into a contract during the calendar year.
   (2) Any other information the Franchise Tax Board may require.
   (b) The Franchise Tax Board may provide that this section also
shall apply to any of the following:
   (1) Licenses granted by state agencies.
   (2) Subcontracts under contracts to which subdivision (a) applies.
   (c) This section shall not apply to contracts or licenses in any
class which are below a minimum amount or value which may be
determined by the Franchise Tax Board for that class.



18648.  (a) Section 6112 of the Internal Revenue Code, relating to
material advisors of reportable transactions that must keep lists of
advisees, applies except as otherwise provided.
   (b) Section 6112 of the Internal Revenue Code is modified by
substituting the phrase "Secretary or the Franchise Tax Board" for
the word "Secretary" each place it appears.
   (c) The requirement to maintain lists under this section shall
apply to any material advisor, as defined in Section 6111 of the
Internal Revenue Code, with respect to any reportable transaction, as
defined in Section 6707A(c) of the Internal Revenue Code and
regardless of whether a return is required to be filed under Section
18628 with respect to that reportable transaction and with respect to
a material advisor that satisfies any of the following conditions:
   (1) Is organized in this state.
   (2) Is doing business in this state.
   (3) Derives income from sources in this state.
   (4) Provides any material aid, assistance, or advice with respect
to organizing, managing, promoting, selling, implementing, insuring,
or carrying out any reportable transaction with respect to a taxpayer
that meets any of the following conditions:
   (A) Is organized in this state.
   (B) Does business in this state.
   (C) Derives income from sources in this state.
   (d) (1) In addition to any regulation issued under Section 6112 of
the Internal Revenue Code, the list required to be maintained by
this section for listed transactions, as defined in Section 6707A(c)
(2) of the Internal Revenue Code, shall be maintained in the form and
manner prescribed by the Franchise Tax Board.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
requirement prescribed by the Franchise Tax Board under this section.
   (3) For transactions entered into on or after February 28, 2000,
that become listed transactions (as defined under Section 6707A(c)(2)
of the Internal Revenue Code) at any time, the lists shall be
provided to the Franchise Tax Board by the later of:
   (A) Sixty days after entering into the transaction.
   (B) Sixty days after the transaction becomes a listed transaction.
   (4) For transactions entered into on or after September 2, 2003,
that are specifically identified by the Franchise Tax Board for
California income or franchise tax purposes (under the authority of
paragraph (4) of subdivision (a) of Section 18407) as a "listed
transaction" at any time, the list shall be provided to the Franchise
Tax Board by the later of:
   (A) Sixty days after entering into the transaction.
   (B) Sixty days after the transaction becomes a listed transaction.



18648.5.  (a) Section 6115 of the Internal Revenue Code, relating to
disclosure related to quid pro quo contributions, shall apply,
except as otherwise provided.
   (b) The requirements of subdivision (a) shall be treated as being
satisfied upon a showing that the requirements in Section 6115 of the
Internal Revenue Code have been met with respect to that
contribution for federal purposes.
   (c) The provisions of this section shall apply to quid pro quo
contributions made on or after January 1, 1997.



18649.  A copy of the information furnished pursuant to Section 1275
(c)(2) of the Internal Revenue Code shall be provided to the
Franchise Tax Board by any issuer subject to tax under this part at
the time and in the manner required by the Franchise Tax Board.