19251. The remedies of the state provided for in this chapter are
cumulative, and no action taken by the Franchise Tax Board
constitutes an election by the state to pursue any remedy to the
exclusion of any other remedy for which provision is made in this
part.
19252. In all proceedings under this chapter the Franchise Tax
Board may act on behalf of the people of the State of California.
19253. The amounts required to be paid by any person under this
part together with interest and penalties shall be satisfied first in
any of the following cases:
(a) Whenever the person is insolvent.
(b) Whenever the person makes a voluntary assignment of assets.
(c) Whenever the estate of the person in the hands of executors,
administrators, or heirs is insufficient to pay all the debts due
from the deceased.
(d) Whenever the estate and effects of an absconding, concealed,
or absent person required to pay any amount under this part are
levied upon by process of law.
This section does not give the state a preference over any lien or
security interest which was recorded or perfected prior to the time
when the state records or files its lien as provided in Section 7171
of the Government Code.
The preference given to the state by this section shall be
subordinate to the preferences given to claims for personal services
by Sections 1204 and 1206 of the Code of Civil Procedure.
19254. (a) (1) If any person, other than an organization exempt
from taxation under Section 23701, fails to pay any amount of tax,
penalty, addition to tax, interest, or other liability imposed and
delinquent under Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part, a collection cost
recovery fee shall be imposed if the Franchise Tax Board has mailed
notice to that person for payment that advises that continued failure
to pay the amount due may result in collection action, including the
imposition of a collection cost recovery fee. The collection cost
recovery fee shall be in the amount of:
(A) In the case of an individual, partnership, limited liability
company classified as a partnership for California income tax
purposes, or fiduciary, eighty-eight dollars ($88) or an amount as
adjusted under subdivision (b).
(B) In the case of a corporation or limited liability company
classified as a corporation for California income tax purposes, one
hundred sixty-six dollars ($166) or an amount as adjusted under
subdivision (b).
(2) If any person, other than an organization exempt from taxation
under Section 23701, fails or refuses to make and file a tax return
required by Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part, within 25 days after
formal legal demand to file the tax return is mailed to that person
by the Franchise Tax Board, the Franchise Tax Board shall impose a
filing enforcement cost recovery fee in the amount of:
(A) In the case of an individual, partnership, limited liability
company classified as a partnership for California income tax
purposes, or fiduciary, fifty-one dollars ($51) or an amount as
adjusted under subdivision (b).
(B) In the case of a corporation or limited liability company
classified as a corporation for California income tax purposes, one
hundred nineteen dollars ($119) or an amount as adjusted under
subdivision (b).
(b) For fees imposed under this section during the fiscal year
1993-94 and fiscal years thereafter, the amount of those fees shall
be set to reflect actual costs and shall be specified in the annual
Budget Act.
(c) Interest shall not accrue with respect to the cost recovery
fees provided by this section.
(d) The amounts provided by this section are obligations imposed
by this part and may be collected in any manner provided under this
part for the collection of a tax.
(e) Subdivision (a) is operative with respect to the notices for
payment or formal legal demands to file, either of which is mailed on
or after September 15, 1992.
(f) The Franchise Tax Board shall determine the total amount of
the cost recovery fees collected or accrued through June 30, 1993,
and shall notify the Controller of that amount. The Controller shall
transfer that amount to the Franchise Tax Board, and that amount is
hereby appropriated to the board for the 1992-93 fiscal year for
reimbursement of its collection and filing enforcement efforts.
19255. (a) Except as otherwise provided in subdivisions (b) and
(e), after 20 years have lapsed from the date the latest tax
liability for a taxable year or the date any other liability that is
not associated with a taxable year becomes "due and payable" within
the meaning of Section 19221, the Franchise Tax Board may not collect
that amount and the taxpayer's liability to the state for that
liability is abated by reason of lapse of time. Any actions taken by
the Franchise Tax Board to collect an uncollectible liability shall
be released, withdrawn, or otherwise terminated by the Franchise Tax
Board, and no subsequent administrative or civil action shall be
taken or brought to collect all or part of that uncollectible amount.
Any amounts received in contravention of this section shall be
considered an overpayment pursuant to Section 19306 that may be
credited and refunded in accordance with Section 19301.
(b) If a timely civil action filed pursuant to Article 2 of
Chapter 6 of this part is commenced, or a claim is filed in a probate
action, the period for which the liability is collectable shall be
extended and shall not expire until that liability, probate claim, or
judgment against the taxpayer arising from that liability is
satisfied or becomes unenforceable under the laws applicable to the
enforcement of civil judgments.
(c) For purposes of this section, both of the following apply:
(1) "Tax liability" means a liability imposed under Part 10
(commencing with Section 17001), Part 11 (commencing with Section
23001), or this part, and includes any additions to tax, interest,
penalties, fees and any other amounts relating to the imposed
liability.
(2) If more than one liability is "due and payable" for a
particular taxable year, with the exception of a liability resulting
from a penalty imposed under Section 19777.5, the "due and payable"
date that is later in time shall be the date upon which the 20-year
limitation of subdivision (a) commences.
(d) This section shall not apply to amounts subject to collection
by the Franchise Tax Board pursuant to Article 5, 5.5, or 6 of this
chapter, or any other amount that is not a tax imposed under Part 10
or Part 11, but which the Franchise Tax Board is collecting as though
it were a final personal income tax delinquency.
(e) (1) The expiration of the period of limitation on collection
under this section shall be suspended for the following periods:
(A) The period that the Franchise Tax Board is prohibited from
involuntary collection under subparagraph (B) of paragraph (1) of
subdivision (b) of Section 19271 relating to collection of child
support delinquencies, plus 60 days thereafter.
(B) The period during which the Franchise Tax Board is prohibited
by reason of a bankruptcy case from collecting, plus six months
thereafter.
(C) The period described under subdivision (d) of Section 19008
relating to installment payment agreements.
(D) The period during which collection is postponed by operation
of law under Section 18571, related to postponement by reason of
service in a combat zone, or under Section 18572, related to
postponement by reason of presidentially declared disaster or
terroristic or military action.
(E) During any other period during which collection of a tax is
suspended, postponed, or extended by operation of law.
(2) A suspension of the period of limitation under this
subdivision shall apply with respect to both parties of any liability
that is joint and several.
(f) This section shall be applied on and after July 1, 2006, to
any liability "due and payable" before, on, or after that date.
19256. The Franchise Tax Board may, in the allowance of any amount
as a credit or refund, or in the collection of any amount as a
deficiency or underpayment, of any tax imposed by Part 10 (commencing
with Section 17001) or Part 11 (commencing with Section 23001),
disregard a fractional part of a dollar unless it amounts to fifty
cents ($0.50) or more, in which case it shall be increased to one
dollar ($1).
19262. (a) At any time within which an action can be brought to
collect any delinquent amounts as provided in Article 2 (commencing
with Section 19371) of Chapter 6, the Franchise Tax Board may collect
the tax, together with penalties and interest, in the following
manner: The Franchise Tax Board shall seize any personal property
owned by the taxpayer against whom the tax is assessed, and
thereafter sell at public auction the property so seized, or a
sufficient portion thereof, to pay the tax due hereunder, together
with any interest, and any penalty or penalties imposed hereby for
that delinquency, and any and all costs that may have been incurred
on account of the seizure and sale. Notice of the intended sale and
the time and place thereof, shall be given to the delinquent taxpayer
and to all persons appearing of record to have an interest in the
property, in writing, at least 10 days before the date set for the
sale by enclosing the notice in an envelope addressed to the taxpayer
at its last known place of business in this state if any, and, in
the case of any person appearing of record to have an interest in the
property, addressed to that person at the last known place of
residence, if any, and depositing the same in the United States mail,
postage prepaid, and by publication for at least 10 days before the
date set for the sale in a newspaper of general circulation published
in the county in which the property seized is to be sold; provided,
however, that if there be no newspaper of general circulation in that
county then by the posting of the notice in three public places in
the county for the 10-day period. The notice shall contain a
description of the property to be sold, together with a statement of
the amount of the taxes, interest, penalties, and costs, the name of
the taxpayer, and the further statement that, unless the taxes,
interest, penalties, and costs are paid on or before the time fixed
in the notice for the sale, the property, or so much thereof as may
be necessary, will be sold in accordance with law and the notice.
(b) For purposes of this section, the term tax shall include any
liability imposed pursuant to Article 7 (commencing with Section
19131) of Chapter 4, and any interest imposed thereon.
19263. At any sale authorized by Section 19262, the property shall
be sold by the Franchise Tax Board or its duly authorized agent in
accordance with law and the notice of sale, and the Franchise Tax
Board shall deliver to the purchaser a bill of sale for the property
so sold and the bill of sale shall vest title in the purchaser. The
unsold portion of any property so seized may be left at the place of
sale at the risk of the taxpayer. If, upon any sale, the moneys so
received exceed the amount of all taxes, interest, penalties and
costs due the state from the taxpayer, any excess shall be returned
to the taxpayer and a receipt therefor obtained. However, if any
person having an interest in or lien upon the property has filed with
the Franchise Tax Board prior to any sale notice of the interest or
lien, the Franchise Tax Board shall withhold any excess pending a
determination of the rights of the respective parties thereto by a
court of competent jurisdiction.
If, for any reason, the receipt of the taxpayer is not available,
the Franchise Tax Board shall deposit the excess moneys with the
Treasurer, as trustee for the owner, subject to the order of the
taxpayer or his or her trust or estate, or in the case of a
corporation, its successor through reorganization, merger, or
consolidation, or its stockholders upon dissolution.
19264. (a) Notwithstanding Sections 706.071 and 706.080 of the Code
of Civil Procedure, the Franchise Tax Board shall establish a pilot
program to issue earnings withholding orders for taxes and any other
notice or document required to be served or provided in connection
with an earnings withholding order, pursuant to Article 4 (commencing
with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part
2 of the Code of Civil Procedure, to government and private employers
by magnetic media, electronic transmission, or other electronic
technology. The purpose of the pilot program is to study the
feasibility and cost-effectiveness of the Franchise Tax Board issuing
earnings withholding orders to employers using magnetic media,
electronic transmission, or other electronic technology.
(b) The pilot program shall apply to any earnings withholding
order for taxes and any other notice or document required to be
served or provided in accordance with subdivision (a) on or after
January 1, 1997, and before January 1, 1999, to an employer who
agrees to participate in the pilot program.
(c) For purposes of the pilot program, the Franchise Tax Board
shall identify and work with employers who agree to be served as
authorized by subdivision (a).
(d) The pilot program shall be successful if the Franchise Tax
Board can demonstrate all of the following:
(1) The Franchise Tax Board's time to prepare and serve earnings
withholding orders by magnetic media, electronic transmission, or
other electronic technology, as authorized by subdivision (a), will
be reduced by at least two days when compared to orders that would
otherwise be prepared and served under Article 4 (commencing with
Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of
the Code of Civil Procedure.
(2) The Franchise Tax Board's administrative cost to prepare and
serve earnings withholding orders by magnetic media, electronic
transmission, or other electronic technology, as authorized by
subdivision (a), will be less than the cost to prepare and serve
orders as specified under Article 4 (commencing with Section 706.070)
of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
(3) The employer's time and administrative costs to receive and
comply with orders served in accordance with subdivision (a) do not
exceed the time and administrative costs when compared to receiving
and complying with orders served in accordance with Article 4
(commencing with Section 706.070) of Chapter 5 of Division 2 of Title
9 of Part 2 of the Code of Civil Procedure.
(e) If the Franchise Tax Board determines that the pilot program
is successful based on the criteria stated in subdivision (d), the
Franchise Tax Board may continue to issue earnings withholding orders
for taxes and any other notice or document required to be served or
provided in connection with an earnings withholding order, pursuant
to Article 4 (commencing with Section 706.070) of Chapter 5 of
Division 2 of Title 9 of Part 2 of the Code of Civil Procedure, to
government and private employers who agree to accept service by
magnetic media, electronic transmission, or other electronic
technology.
(f) This section shall apply in the same manner and with the same
force and effect and to the full extent as if this section had been
incorporated in full into Article 4 (commencing with Section 706.070)
of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
19251. The remedies of the state provided for in this chapter are
cumulative, and no action taken by the Franchise Tax Board
constitutes an election by the state to pursue any remedy to the
exclusion of any other remedy for which provision is made in this
part.
19252. In all proceedings under this chapter the Franchise Tax
Board may act on behalf of the people of the State of California.
19253. The amounts required to be paid by any person under this
part together with interest and penalties shall be satisfied first in
any of the following cases:
(a) Whenever the person is insolvent.
(b) Whenever the person makes a voluntary assignment of assets.
(c) Whenever the estate of the person in the hands of executors,
administrators, or heirs is insufficient to pay all the debts due
from the deceased.
(d) Whenever the estate and effects of an absconding, concealed,
or absent person required to pay any amount under this part are
levied upon by process of law.
This section does not give the state a preference over any lien or
security interest which was recorded or perfected prior to the time
when the state records or files its lien as provided in Section 7171
of the Government Code.
The preference given to the state by this section shall be
subordinate to the preferences given to claims for personal services
by Sections 1204 and 1206 of the Code of Civil Procedure.
19254. (a) (1) If any person, other than an organization exempt
from taxation under Section 23701, fails to pay any amount of tax,
penalty, addition to tax, interest, or other liability imposed and
delinquent under Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part, a collection cost
recovery fee shall be imposed if the Franchise Tax Board has mailed
notice to that person for payment that advises that continued failure
to pay the amount due may result in collection action, including the
imposition of a collection cost recovery fee. The collection cost
recovery fee shall be in the amount of:
(A) In the case of an individual, partnership, limited liability
company classified as a partnership for California income tax
purposes, or fiduciary, eighty-eight dollars ($88) or an amount as
adjusted under subdivision (b).
(B) In the case of a corporation or limited liability company
classified as a corporation for California income tax purposes, one
hundred sixty-six dollars ($166) or an amount as adjusted under
subdivision (b).
(2) If any person, other than an organization exempt from taxation
under Section 23701, fails or refuses to make and file a tax return
required by Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part, within 25 days after
formal legal demand to file the tax return is mailed to that person
by the Franchise Tax Board, the Franchise Tax Board shall impose a
filing enforcement cost recovery fee in the amount of:
(A) In the case of an individual, partnership, limited liability
company classified as a partnership for California income tax
purposes, or fiduciary, fifty-one dollars ($51) or an amount as
adjusted under subdivision (b).
(B) In the case of a corporation or limited liability company
classified as a corporation for California income tax purposes, one
hundred nineteen dollars ($119) or an amount as adjusted under
subdivision (b).
(b) For fees imposed under this section during the fiscal year
1993-94 and fiscal years thereafter, the amount of those fees shall
be set to reflect actual costs and shall be specified in the annual
Budget Act.
(c) Interest shall not accrue with respect to the cost recovery
fees provided by this section.
(d) The amounts provided by this section are obligations imposed
by this part and may be collected in any manner provided under this
part for the collection of a tax.
(e) Subdivision (a) is operative with respect to the notices for
payment or formal legal demands to file, either of which is mailed on
or after September 15, 1992.
(f) The Franchise Tax Board shall determine the total amount of
the cost recovery fees collected or accrued through June 30, 1993,
and shall notify the Controller of that amount. The Controller shall
transfer that amount to the Franchise Tax Board, and that amount is
hereby appropriated to the board for the 1992-93 fiscal year for
reimbursement of its collection and filing enforcement efforts.
19255. (a) Except as otherwise provided in subdivisions (b) and
(e), after 20 years have lapsed from the date the latest tax
liability for a taxable year or the date any other liability that is
not associated with a taxable year becomes "due and payable" within
the meaning of Section 19221, the Franchise Tax Board may not collect
that amount and the taxpayer's liability to the state for that
liability is abated by reason of lapse of time. Any actions taken by
the Franchise Tax Board to collect an uncollectible liability shall
be released, withdrawn, or otherwise terminated by the Franchise Tax
Board, and no subsequent administrative or civil action shall be
taken or brought to collect all or part of that uncollectible amount.
Any amounts received in contravention of this section shall be
considered an overpayment pursuant to Section 19306 that may be
credited and refunded in accordance with Section 19301.
(b) If a timely civil action filed pursuant to Article 2 of
Chapter 6 of this part is commenced, or a claim is filed in a probate
action, the period for which the liability is collectable shall be
extended and shall not expire until that liability, probate claim, or
judgment against the taxpayer arising from that liability is
satisfied or becomes unenforceable under the laws applicable to the
enforcement of civil judgments.
(c) For purposes of this section, both of the following apply:
(1) "Tax liability" means a liability imposed under Part 10
(commencing with Section 17001), Part 11 (commencing with Section
23001), or this part, and includes any additions to tax, interest,
penalties, fees and any other amounts relating to the imposed
liability.
(2) If more than one liability is "due and payable" for a
particular taxable year, with the exception of a liability resulting
from a penalty imposed under Section 19777.5, the "due and payable"
date that is later in time shall be the date upon which the 20-year
limitation of subdivision (a) commences.
(d) This section shall not apply to amounts subject to collection
by the Franchise Tax Board pursuant to Article 5, 5.5, or 6 of this
chapter, or any other amount that is not a tax imposed under Part 10
or Part 11, but which the Franchise Tax Board is collecting as though
it were a final personal income tax delinquency.
(e) (1) The expiration of the period of limitation on collection
under this section shall be suspended for the following periods:
(A) The period that the Franchise Tax Board is prohibited from
involuntary collection under subparagraph (B) of paragraph (1) of
subdivision (b) of Section 19271 relating to collection of child
support delinquencies, plus 60 days thereafter.
(B) The period during which the Franchise Tax Board is prohibited
by reason of a bankruptcy case from collecting, plus six months
thereafter.
(C) The period described under subdivision (d) of Section 19008
relating to installment payment agreements.
(D) The period during which collection is postponed by operation
of law under Section 18571, related to postponement by reason of
service in a combat zone, or under Section 18572, related to
postponement by reason of presidentially declared disaster or
terroristic or military action.
(E) During any other period during which collection of a tax is
suspended, postponed, or extended by operation of law.
(2) A suspension of the period of limitation under this
subdivision shall apply with respect to both parties of any liability
that is joint and several.
(f) This section shall be applied on and after July 1, 2006, to
any liability "due and payable" before, on, or after that date.
19256. The Franchise Tax Board may, in the allowance of any amount
as a credit or refund, or in the collection of any amount as a
deficiency or underpayment, of any tax imposed by Part 10 (commencing
with Section 17001) or Part 11 (commencing with Section 23001),
disregard a fractional part of a dollar unless it amounts to fifty
cents ($0.50) or more, in which case it shall be increased to one
dollar ($1).
19262. (a) At any time within which an action can be brought to
collect any delinquent amounts as provided in Article 2 (commencing
with Section 19371) of Chapter 6, the Franchise Tax Board may collect
the tax, together with penalties and interest, in the following
manner: The Franchise Tax Board shall seize any personal property
owned by the taxpayer against whom the tax is assessed, and
thereafter sell at public auction the property so seized, or a
sufficient portion thereof, to pay the tax due hereunder, together
with any interest, and any penalty or penalties imposed hereby for
that delinquency, and any and all costs that may have been incurred
on account of the seizure and sale. Notice of the intended sale and
the time and place thereof, shall be given to the delinquent taxpayer
and to all persons appearing of record to have an interest in the
property, in writing, at least 10 days before the date set for the
sale by enclosing the notice in an envelope addressed to the taxpayer
at its last known place of business in this state if any, and, in
the case of any person appearing of record to have an interest in the
property, addressed to that person at the last known place of
residence, if any, and depositing the same in the United States mail,
postage prepaid, and by publication for at least 10 days before the
date set for the sale in a newspaper of general circulation published
in the county in which the property seized is to be sold; provided,
however, that if there be no newspaper of general circulation in that
county then by the posting of the notice in three public places in
the county for the 10-day period. The notice shall contain a
description of the property to be sold, together with a statement of
the amount of the taxes, interest, penalties, and costs, the name of
the taxpayer, and the further statement that, unless the taxes,
interest, penalties, and costs are paid on or before the time fixed
in the notice for the sale, the property, or so much thereof as may
be necessary, will be sold in accordance with law and the notice.
(b) For purposes of this section, the term tax shall include any
liability imposed pursuant to Article 7 (commencing with Section
19131) of Chapter 4, and any interest imposed thereon.
19263. At any sale authorized by Section 19262, the property shall
be sold by the Franchise Tax Board or its duly authorized agent in
accordance with law and the notice of sale, and the Franchise Tax
Board shall deliver to the purchaser a bill of sale for the property
so sold and the bill of sale shall vest title in the purchaser. The
unsold portion of any property so seized may be left at the place of
sale at the risk of the taxpayer. If, upon any sale, the moneys so
received exceed the amount of all taxes, interest, penalties and
costs due the state from the taxpayer, any excess shall be returned
to the taxpayer and a receipt therefor obtained. However, if any
person having an interest in or lien upon the property has filed with
the Franchise Tax Board prior to any sale notice of the interest or
lien, the Franchise Tax Board shall withhold any excess pending a
determination of the rights of the respective parties thereto by a
court of competent jurisdiction.
If, for any reason, the receipt of the taxpayer is not available,
the Franchise Tax Board shall deposit the excess moneys with the
Treasurer, as trustee for the owner, subject to the order of the
taxpayer or his or her trust or estate, or in the case of a
corporation, its successor through reorganization, merger, or
consolidation, or its stockholders upon dissolution.
19264. (a) Notwithstanding Sections 706.071 and 706.080 of the Code
of Civil Procedure, the Franchise Tax Board shall establish a pilot
program to issue earnings withholding orders for taxes and any other
notice or document required to be served or provided in connection
with an earnings withholding order, pursuant to Article 4 (commencing
with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part
2 of the Code of Civil Procedure, to government and private employers
by magnetic media, electronic transmission, or other electronic
technology. The purpose of the pilot program is to study the
feasibility and cost-effectiveness of the Franchise Tax Board issuing
earnings withholding orders to employers using magnetic media,
electronic transmission, or other electronic technology.
(b) The pilot program shall apply to any earnings withholding
order for taxes and any other notice or document required to be
served or provided in accordance with subdivision (a) on or after
January 1, 1997, and before January 1, 1999, to an employer who
agrees to participate in the pilot program.
(c) For purposes of the pilot program, the Franchise Tax Board
shall identify and work with employers who agree to be served as
authorized by subdivision (a).
(d) The pilot program shall be successful if the Franchise Tax
Board can demonstrate all of the following:
(1) The Franchise Tax Board's time to prepare and serve earnings
withholding orders by magnetic media, electronic transmission, or
other electronic technology, as authorized by subdivision (a), will
be reduced by at least two days when compared to orders that would
otherwise be prepared and served under Article 4 (commencing with
Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of
the Code of Civil Procedure.
(2) The Franchise Tax Board's administrative cost to prepare and
serve earnings withholding orders by magnetic media, electronic
transmission, or other electronic technology, as authorized by
subdivision (a), will be less than the cost to prepare and serve
orders as specified under Article 4 (commencing with Section 706.070)
of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
(3) The employer's time and administrative costs to receive and
comply with orders served in accordance with subdivision (a) do not
exceed the time and administrative costs when compared to receiving
and complying with orders served in accordance with Article 4
(commencing with Section 706.070) of Chapter 5 of Division 2 of Title
9 of Part 2 of the Code of Civil Procedure.
(e) If the Franchise Tax Board determines that the pilot program
is successful based on the criteria stated in subdivision (d), the
Franchise Tax Board may continue to issue earnings withholding orders
for taxes and any other notice or document required to be served or
provided in connection with an earnings withholding order, pursuant
to Article 4 (commencing with Section 706.070) of Chapter 5 of
Division 2 of Title 9 of Part 2 of the Code of Civil Procedure, to
government and private employers who agree to accept service by
magnetic media, electronic transmission, or other electronic
technology.
(f) This section shall apply in the same manner and with the same
force and effect and to the full extent as if this section had been
incorporated in full into Article 4 (commencing with Section 706.070)
of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
19251. The remedies of the state provided for in this chapter are
cumulative, and no action taken by the Franchise Tax Board
constitutes an election by the state to pursue any remedy to the
exclusion of any other remedy for which provision is made in this
part.
19252. In all proceedings under this chapter the Franchise Tax
Board may act on behalf of the people of the State of California.
19253. The amounts required to be paid by any person under this
part together with interest and penalties shall be satisfied first in
any of the following cases:
(a) Whenever the person is insolvent.
(b) Whenever the person makes a voluntary assignment of assets.
(c) Whenever the estate of the person in the hands of executors,
administrators, or heirs is insufficient to pay all the debts due
from the deceased.
(d) Whenever the estate and effects of an absconding, concealed,
or absent person required to pay any amount under this part are
levied upon by process of law.
This section does not give the state a preference over any lien or
security interest which was recorded or perfected prior to the time
when the state records or files its lien as provided in Section 7171
of the Government Code.
The preference given to the state by this section shall be
subordinate to the preferences given to claims for personal services
by Sections 1204 and 1206 of the Code of Civil Procedure.
19254. (a) (1) If any person, other than an organization exempt
from taxation under Section 23701, fails to pay any amount of tax,
penalty, addition to tax, interest, or other liability imposed and
delinquent under Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part, a collection cost
recovery fee shall be imposed if the Franchise Tax Board has mailed
notice to that person for payment that advises that continued failure
to pay the amount due may result in collection action, including the
imposition of a collection cost recovery fee. The collection cost
recovery fee shall be in the amount of:
(A) In the case of an individual, partnership, limited liability
company classified as a partnership for California income tax
purposes, or fiduciary, eighty-eight dollars ($88) or an amount as
adjusted under subdivision (b).
(B) In the case of a corporation or limited liability company
classified as a corporation for California income tax purposes, one
hundred sixty-six dollars ($166) or an amount as adjusted under
subdivision (b).
(2) If any person, other than an organization exempt from taxation
under Section 23701, fails or refuses to make and file a tax return
required by Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part, within 25 days after
formal legal demand to file the tax return is mailed to that person
by the Franchise Tax Board, the Franchise Tax Board shall impose a
filing enforcement cost recovery fee in the amount of:
(A) In the case of an individual, partnership, limited liability
company classified as a partnership for California income tax
purposes, or fiduciary, fifty-one dollars ($51) or an amount as
adjusted under subdivision (b).
(B) In the case of a corporation or limited liability company
classified as a corporation for California income tax purposes, one
hundred nineteen dollars ($119) or an amount as adjusted under
subdivision (b).
(b) For fees imposed under this section during the fiscal year
1993-94 and fiscal years thereafter, the amount of those fees shall
be set to reflect actual costs and shall be specified in the annual
Budget Act.
(c) Interest shall not accrue with respect to the cost recovery
fees provided by this section.
(d) The amounts provided by this section are obligations imposed
by this part and may be collected in any manner provided under this
part for the collection of a tax.
(e) Subdivision (a) is operative with respect to the notices for
payment or formal legal demands to file, either of which is mailed on
or after September 15, 1992.
(f) The Franchise Tax Board shall determine the total amount of
the cost recovery fees collected or accrued through June 30, 1993,
and shall notify the Controller of that amount. The Controller shall
transfer that amount to the Franchise Tax Board, and that amount is
hereby appropriated to the board for the 1992-93 fiscal year for
reimbursement of its collection and filing enforcement efforts.
19255. (a) Except as otherwise provided in subdivisions (b) and
(e), after 20 years have lapsed from the date the latest tax
liability for a taxable year or the date any other liability that is
not associated with a taxable year becomes "due and payable" within
the meaning of Section 19221, the Franchise Tax Board may not collect
that amount and the taxpayer's liability to the state for that
liability is abated by reason of lapse of time. Any actions taken by
the Franchise Tax Board to collect an uncollectible liability shall
be released, withdrawn, or otherwise terminated by the Franchise Tax
Board, and no subsequent administrative or civil action shall be
taken or brought to collect all or part of that uncollectible amount.
Any amounts received in contravention of this section shall be
considered an overpayment pursuant to Section 19306 that may be
credited and refunded in accordance with Section 19301.
(b) If a timely civil action filed pursuant to Article 2 of
Chapter 6 of this part is commenced, or a claim is filed in a probate
action, the period for which the liability is collectable shall be
extended and shall not expire until that liability, probate claim, or
judgment against the taxpayer arising from that liability is
satisfied or becomes unenforceable under the laws applicable to the
enforcement of civil judgments.
(c) For purposes of this section, both of the following apply:
(1) "Tax liability" means a liability imposed under Part 10
(commencing with Section 17001), Part 11 (commencing with Section
23001), or this part, and includes any additions to tax, interest,
penalties, fees and any other amounts relating to the imposed
liability.
(2) If more than one liability is "due and payable" for a
particular taxable year, with the exception of a liability resulting
from a penalty imposed under Section 19777.5, the "due and payable"
date that is later in time shall be the date upon which the 20-year
limitation of subdivision (a) commences.
(d) This section shall not apply to amounts subject to collection
by the Franchise Tax Board pursuant to Article 5, 5.5, or 6 of this
chapter, or any other amount that is not a tax imposed under Part 10
or Part 11, but which the Franchise Tax Board is collecting as though
it were a final personal income tax delinquency.
(e) (1) The expiration of the period of limitation on collection
under this section shall be suspended for the following periods:
(A) The period that the Franchise Tax Board is prohibited from
involuntary collection under subparagraph (B) of paragraph (1) of
subdivision (b) of Section 19271 relating to collection of child
support delinquencies, plus 60 days thereafter.
(B) The period during which the Franchise Tax Board is prohibited
by reason of a bankruptcy case from collecting, plus six months
thereafter.
(C) The period described under subdivision (d) of Section 19008
relating to installment payment agreements.
(D) The period during which collection is postponed by operation
of law under Section 18571, related to postponement by reason of
service in a combat zone, or under Section 18572, related to
postponement by reason of presidentially declared disaster or
terroristic or military action.
(E) During any other period during which collection of a tax is
suspended, postponed, or extended by operation of law.
(2) A suspension of the period of limitation under this
subdivision shall apply with respect to both parties of any liability
that is joint and several.
(f) This section shall be applied on and after July 1, 2006, to
any liability "due and payable" before, on, or after that date.
19256. The Franchise Tax Board may, in the allowance of any amount
as a credit or refund, or in the collection of any amount as a
deficiency or underpayment, of any tax imposed by Part 10 (commencing
with Section 17001) or Part 11 (commencing with Section 23001),
disregard a fractional part of a dollar unless it amounts to fifty
cents ($0.50) or more, in which case it shall be increased to one
dollar ($1).
19262. (a) At any time within which an action can be brought to
collect any delinquent amounts as provided in Article 2 (commencing
with Section 19371) of Chapter 6, the Franchise Tax Board may collect
the tax, together with penalties and interest, in the following
manner: The Franchise Tax Board shall seize any personal property
owned by the taxpayer against whom the tax is assessed, and
thereafter sell at public auction the property so seized, or a
sufficient portion thereof, to pay the tax due hereunder, together
with any interest, and any penalty or penalties imposed hereby for
that delinquency, and any and all costs that may have been incurred
on account of the seizure and sale. Notice of the intended sale and
the time and place thereof, shall be given to the delinquent taxpayer
and to all persons appearing of record to have an interest in the
property, in writing, at least 10 days before the date set for the
sale by enclosing the notice in an envelope addressed to the taxpayer
at its last known place of business in this state if any, and, in
the case of any person appearing of record to have an interest in the
property, addressed to that person at the last known place of
residence, if any, and depositing the same in the United States mail,
postage prepaid, and by publication for at least 10 days before the
date set for the sale in a newspaper of general circulation published
in the county in which the property seized is to be sold; provided,
however, that if there be no newspaper of general circulation in that
county then by the posting of the notice in three public places in
the county for the 10-day period. The notice shall contain a
description of the property to be sold, together with a statement of
the amount of the taxes, interest, penalties, and costs, the name of
the taxpayer, and the further statement that, unless the taxes,
interest, penalties, and costs are paid on or before the time fixed
in the notice for the sale, the property, or so much thereof as may
be necessary, will be sold in accordance with law and the notice.
(b) For purposes of this section, the term tax shall include any
liability imposed pursuant to Article 7 (commencing with Section
19131) of Chapter 4, and any interest imposed thereon.
19263. At any sale authorized by Section 19262, the property shall
be sold by the Franchise Tax Board or its duly authorized agent in
accordance with law and the notice of sale, and the Franchise Tax
Board shall deliver to the purchaser a bill of sale for the property
so sold and the bill of sale shall vest title in the purchaser. The
unsold portion of any property so seized may be left at the place of
sale at the risk of the taxpayer. If, upon any sale, the moneys so
received exceed the amount of all taxes, interest, penalties and
costs due the state from the taxpayer, any excess shall be returned
to the taxpayer and a receipt therefor obtained. However, if any
person having an interest in or lien upon the property has filed with
the Franchise Tax Board prior to any sale notice of the interest or
lien, the Franchise Tax Board shall withhold any excess pending a
determination of the rights of the respective parties thereto by a
court of competent jurisdiction.
If, for any reason, the receipt of the taxpayer is not available,
the Franchise Tax Board shall deposit the excess moneys with the
Treasurer, as trustee for the owner, subject to the order of the
taxpayer or his or her trust or estate, or in the case of a
corporation, its successor through reorganization, merger, or
consolidation, or its stockholders upon dissolution.
19264. (a) Notwithstanding Sections 706.071 and 706.080 of the Code
of Civil Procedure, the Franchise Tax Board shall establish a pilot
program to issue earnings withholding orders for taxes and any other
notice or document required to be served or provided in connection
with an earnings withholding order, pursuant to Article 4 (commencing
with Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part
2 of the Code of Civil Procedure, to government and private employers
by magnetic media, electronic transmission, or other electronic
technology. The purpose of the pilot program is to study the
feasibility and cost-effectiveness of the Franchise Tax Board issuing
earnings withholding orders to employers using magnetic media,
electronic transmission, or other electronic technology.
(b) The pilot program shall apply to any earnings withholding
order for taxes and any other notice or document required to be
served or provided in accordance with subdivision (a) on or after
January 1, 1997, and before January 1, 1999, to an employer who
agrees to participate in the pilot program.
(c) For purposes of the pilot program, the Franchise Tax Board
shall identify and work with employers who agree to be served as
authorized by subdivision (a).
(d) The pilot program shall be successful if the Franchise Tax
Board can demonstrate all of the following:
(1) The Franchise Tax Board's time to prepare and serve earnings
withholding orders by magnetic media, electronic transmission, or
other electronic technology, as authorized by subdivision (a), will
be reduced by at least two days when compared to orders that would
otherwise be prepared and served under Article 4 (commencing with
Section 706.070) of Chapter 5 of Division 2 of Title 9 of Part 2 of
the Code of Civil Procedure.
(2) The Franchise Tax Board's administrative cost to prepare and
serve earnings withholding orders by magnetic media, electronic
transmission, or other electronic technology, as authorized by
subdivision (a), will be less than the cost to prepare and serve
orders as specified under Article 4 (commencing with Section 706.070)
of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
(3) The employer's time and administrative costs to receive and
comply with orders served in accordance with subdivision (a) do not
exceed the time and administrative costs when compared to receiving
and complying with orders served in accordance with Article 4
(commencing with Section 706.070) of Chapter 5 of Division 2 of Title
9 of Part 2 of the Code of Civil Procedure.
(e) If the Franchise Tax Board determines that the pilot program
is successful based on the criteria stated in subdivision (d), the
Franchise Tax Board may continue to issue earnings withholding orders
for taxes and any other notice or document required to be served or
provided in connection with an earnings withholding order, pursuant
to Article 4 (commencing with Section 706.070) of Chapter 5 of
Division 2 of Title 9 of Part 2 of the Code of Civil Procedure, to
government and private employers who agree to accept service by
magnetic media, electronic transmission, or other electronic
technology.
(f) This section shall apply in the same manner and with the same
force and effect and to the full extent as if this section had been
incorporated in full into Article 4 (commencing with Section 706.070)
of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure.
