State Codes and Statutes

Statutes > California > Rtc > 19751-19778

REVENUE AND TAXATION CODE
SECTION 19751-19778



19751.  (a) The Franchise Tax Board shall develop and administer a
voluntary compliance initiative for taxpayers subject to Part 10
(commencing with Section 17001) and Part 11 (commencing with Section
23001), as provided in this chapter.
   (b) The voluntary compliance initiative shall be conducted during
the period from January 1, 2004, to April 15, 2004, inclusive,
pursuant to Section 19754. This initiative shall apply to tax
liabilities attributable to the use of abusive tax avoidance
transactions for taxable years beginning before January 1, 2003.
   (c) The Franchise Tax Board shall issue forms and instructions and
may take any other actions necessary, including the use of closing
agreements, to implement this chapter.
   (d) The Franchise Tax Board shall publicize the voluntary
compliance initiative so as to maximize public awareness of and
participation in the initiative. The Franchise Tax Board shall
coordinate to the highest degree possible its publicity efforts and
other actions taken in implementing this chapter.
   (e) Any correspondence mailed by the Franchise Tax Board to a
taxpayer at the taxpayer's last known address outlining the voluntary
compliance initiative under this chapter constitutes "contact"
within the meaning of Treasury Regulation Section 1.6664-2(c)(3),
relating to qualified amended returns, and paragraph (3) of
subdivision (e) of Section 19773 and Section 19777, regarding
increased interest rate.



19752.  Any taxpayer who meets the requirements of Section 19754 may
elect the application of either, but not both, of the following:
   (a) Voluntary compliance without appeal. If this option is
elected, then each of the following shall apply:
   (1) The Franchise Tax Board shall waive or abate all penalties
imposed by this part, for all taxable years where the taxpayer elects
to participate in the initiative, as a result of the underreporting
of tax liabilities attributable to the use of abusive tax avoidance
transactions.
   (2) Except as provided in Section 19753, no criminal action shall
be brought against the taxpayer for the taxable years with respect to
issues for which the taxpayer voluntarily complies under this
chapter.
   (3) No penalty may be waived or abated under this chapter if the
penalty imposed is attributable to an assessment of taxes that became
final prior to December 31, 2003.
   (4) Notwithstanding Chapter 6 (commencing with Section 19301) of
this part, the taxpayer may not file a claim for refund for the
amounts paid in connection with abusive tax avoidance transactions
under this chapter.
   (b) Voluntary compliance with appeal. If this option is elected,
then each of the following shall apply:
   (1) The Franchise Tax Board shall waive or abate all penalties,
except the accuracy-related penalty under Section 19164 (as in effect
immediately before enactment of the act adding this section),
imposed by this part, for each of the taxable years for which the
taxpayer elects to participate in the initiative, that are owed as a
result of the underreporting of tax liabilities attributable to the
use of abusive tax avoidance transactions.
   (2) Except as provided in Section 19753, no criminal action may be
brought against the taxpayer for each of the taxable years for which
the taxpayer voluntarily complies under this section.
   (3) No penalty may be waived under this chapter if the penalty
imposed is attributable to an assessment of taxes that became due and
payable prior to December 31, 2003.
   (4) The taxpayer may file a claim for refund under Chapter 6
(commencing with Section 19301) of this part. Notwithstanding Section
19331, the taxpayer may not file an appeal to the board until after
either of the following:
   (A) The date the Franchise Tax Board takes action on the claim for
refund for the tax year to which this chapter applies.
   (B) The later of either of the following dates:
   (i) The date that is 180 days after the date of a final
determination by the Internal Revenue Service with respect to the
transaction or transactions to which this chapter applies.
   (ii) The date that is four years after the date the claim for
refund was filed or one year after full payment of all tax, including
penalty and interest was made, whichever date is later.
   (5) The taxpayer shall be subject to the accuracy-related penalty
under Section 19164.
   (A) The penalty may be assessed:
   (i) When the Franchise Tax Board takes action on the claim for
refund.
   (ii) When a federal determination becomes final for the same
issue, in which case the penalty shall be assessed (and may not be
abated) if the penalty was assessed at the federal level.
   (B) In determining the amount of the underpayment of tax, Treasury
Regulation Section 1.6664-2(c)(2), as promulgated under Section 6664
of the Internal Revenue Code, relating to qualified amended returns,
shall not apply. The amount of the underpayment is the difference
between the amount of tax shown on the original return and the
correct amount of tax for the taxable year. The underpayment amount
shall not be less than the amount of the claim for refund filed by
the taxpayer under paragraph (4) that was denied.
   (C) The penalty is due and payable upon notice and demand pursuant
to Section 19049. Only after the taxpayer has paid all amounts due,
including the penalty, and the claim is denied in whole or in part,
may the taxpayer file an appeal under Chapter 6 (commencing with
Section 19301), of this part in conjunction with the appeal filed
under paragraph (4).
   (c) A taxpayer's election under this section shall be made for all
taxable years of the taxpayer governed by this chapter. A separate
election for each taxable year governed by this chapter is not
allowed.


19753.  (a) This chapter does not apply to violations of this part
for which, as of December 31, 2003, any of the following applies:
   (1) A criminal complaint was filed against the taxpayer in
connection with an abusive tax avoidance transaction or transactions.
   (2) The taxpayer is the subject of a criminal investigation in
connection with an abusive tax avoidance transaction or transactions.
   (b) No refund or credit shall be granted with respect to any
penalty paid prior to the time the taxpayer participates in the
voluntary compliance initiative authorized by this chapter.
   (c) For purposes of this chapter, an "abusive tax avoidance
transaction" means a plan or arrangement devised for the principal
purpose of avoiding tax. Abusive tax avoidance transactions include,
but are not limited to, "listed transactions" as described in
subdivision (a) of Section 18407.



19754.  (a) The voluntary compliance initiative described in this
chapter applies to any taxpayer who was not eligible to participate
in the Internal Revenue Service's Offshore Voluntary Compliance
Initiative described in Revenue Procedure 2003-11, and during the
period from January 1, 2004, to April 15, 2004, does both of the
following:
   (1) Files an amended tax return under this part for each taxable
year for which the taxpayer has previously filed a tax return using
an abusive tax avoidance transaction to underreport the taxpayer's
tax liability for that taxable year. Each amended return shall report
all income from all sources, without regard to the abusive tax
avoidance transaction.
   (2) Except as provided in subdivision (b), pays in full all taxes
and interest due.
   (b) The Franchise Tax Board may enter into an installment payment
agreement in lieu of the full payment required under paragraph (2) of
subdivision (a). Any installment payment agreement authorized by
this subdivision shall include interest on the unpaid amount at the
rate prescribed in Section 19521. Failure by the taxpayer to fully
comply with the terms of the installment payment agreement shall
render the waiver of penalties null and void, and the total amount of
tax, interest, and all penalties shall be immediately due and
payable.
   (c) After April 15, 2004, the Franchise Tax Board may issue a
deficiency assessment upon an amended return filed pursuant to
subdivision (a), impose penalties, or initiate criminal action under
this part with respect to the difference between the amount shown on
that return and the correct amount of tax. This action shall not
invalidate any waivers granted under Section 19752.
   (d) In addition to any other authority to examine returns, for the
purpose of improving state tax administration, the Franchise Tax
Board may inquire into the facts and circumstances related to the use
of abusive tax avoidance transactions to underreport the tax
liabilities for which a taxpayer has participated in the voluntary
compliance initiative under this chapter. Taxpayers shall cooperate
fully with inquiries described in this subdivision. Failure by a
taxpayer to fully cooperate in an inquiry described in this
subdivision shall render the waiver of penalties under this chapter
null and void and the taxpayer may be assessed any penalties that may
apply.


19755.  (a) Notwithstanding Section 19057, with respect to proposed
deficiency assessments related to an abusive tax avoidance
transaction, as defined in subdivision (c) of Section 19753, a notice
of a proposed deficiency assessment may be mailed to the taxpayer
within eight years after the return was filed, or within the period
otherwise provided in Article 3 (commencing with Section 19031) of
Chapter 4 of this part, whichever expires later.
   (b) This section shall apply to any return filed under this part
on or after January 1, 2000.


19778.  For any amended return filed after April 15, 2004, and
before the taxpayer is contacted by the Internal Revenue Service or
the Franchise Tax Board regarding a potentially abusive tax shelter,
then, for taxable years beginning after December 31, 1998, with
respect to any understatement of tax related to using reportable
transactions as defined in Section 18407, as added by the act adding
this section, the taxpayer is subject to interest as provided under
Section 19101 but at a rate of 150 percent of the adjusted annual
rate established under Section 19521.


State Codes and Statutes

Statutes > California > Rtc > 19751-19778

REVENUE AND TAXATION CODE
SECTION 19751-19778



19751.  (a) The Franchise Tax Board shall develop and administer a
voluntary compliance initiative for taxpayers subject to Part 10
(commencing with Section 17001) and Part 11 (commencing with Section
23001), as provided in this chapter.
   (b) The voluntary compliance initiative shall be conducted during
the period from January 1, 2004, to April 15, 2004, inclusive,
pursuant to Section 19754. This initiative shall apply to tax
liabilities attributable to the use of abusive tax avoidance
transactions for taxable years beginning before January 1, 2003.
   (c) The Franchise Tax Board shall issue forms and instructions and
may take any other actions necessary, including the use of closing
agreements, to implement this chapter.
   (d) The Franchise Tax Board shall publicize the voluntary
compliance initiative so as to maximize public awareness of and
participation in the initiative. The Franchise Tax Board shall
coordinate to the highest degree possible its publicity efforts and
other actions taken in implementing this chapter.
   (e) Any correspondence mailed by the Franchise Tax Board to a
taxpayer at the taxpayer's last known address outlining the voluntary
compliance initiative under this chapter constitutes "contact"
within the meaning of Treasury Regulation Section 1.6664-2(c)(3),
relating to qualified amended returns, and paragraph (3) of
subdivision (e) of Section 19773 and Section 19777, regarding
increased interest rate.



19752.  Any taxpayer who meets the requirements of Section 19754 may
elect the application of either, but not both, of the following:
   (a) Voluntary compliance without appeal. If this option is
elected, then each of the following shall apply:
   (1) The Franchise Tax Board shall waive or abate all penalties
imposed by this part, for all taxable years where the taxpayer elects
to participate in the initiative, as a result of the underreporting
of tax liabilities attributable to the use of abusive tax avoidance
transactions.
   (2) Except as provided in Section 19753, no criminal action shall
be brought against the taxpayer for the taxable years with respect to
issues for which the taxpayer voluntarily complies under this
chapter.
   (3) No penalty may be waived or abated under this chapter if the
penalty imposed is attributable to an assessment of taxes that became
final prior to December 31, 2003.
   (4) Notwithstanding Chapter 6 (commencing with Section 19301) of
this part, the taxpayer may not file a claim for refund for the
amounts paid in connection with abusive tax avoidance transactions
under this chapter.
   (b) Voluntary compliance with appeal. If this option is elected,
then each of the following shall apply:
   (1) The Franchise Tax Board shall waive or abate all penalties,
except the accuracy-related penalty under Section 19164 (as in effect
immediately before enactment of the act adding this section),
imposed by this part, for each of the taxable years for which the
taxpayer elects to participate in the initiative, that are owed as a
result of the underreporting of tax liabilities attributable to the
use of abusive tax avoidance transactions.
   (2) Except as provided in Section 19753, no criminal action may be
brought against the taxpayer for each of the taxable years for which
the taxpayer voluntarily complies under this section.
   (3) No penalty may be waived under this chapter if the penalty
imposed is attributable to an assessment of taxes that became due and
payable prior to December 31, 2003.
   (4) The taxpayer may file a claim for refund under Chapter 6
(commencing with Section 19301) of this part. Notwithstanding Section
19331, the taxpayer may not file an appeal to the board until after
either of the following:
   (A) The date the Franchise Tax Board takes action on the claim for
refund for the tax year to which this chapter applies.
   (B) The later of either of the following dates:
   (i) The date that is 180 days after the date of a final
determination by the Internal Revenue Service with respect to the
transaction or transactions to which this chapter applies.
   (ii) The date that is four years after the date the claim for
refund was filed or one year after full payment of all tax, including
penalty and interest was made, whichever date is later.
   (5) The taxpayer shall be subject to the accuracy-related penalty
under Section 19164.
   (A) The penalty may be assessed:
   (i) When the Franchise Tax Board takes action on the claim for
refund.
   (ii) When a federal determination becomes final for the same
issue, in which case the penalty shall be assessed (and may not be
abated) if the penalty was assessed at the federal level.
   (B) In determining the amount of the underpayment of tax, Treasury
Regulation Section 1.6664-2(c)(2), as promulgated under Section 6664
of the Internal Revenue Code, relating to qualified amended returns,
shall not apply. The amount of the underpayment is the difference
between the amount of tax shown on the original return and the
correct amount of tax for the taxable year. The underpayment amount
shall not be less than the amount of the claim for refund filed by
the taxpayer under paragraph (4) that was denied.
   (C) The penalty is due and payable upon notice and demand pursuant
to Section 19049. Only after the taxpayer has paid all amounts due,
including the penalty, and the claim is denied in whole or in part,
may the taxpayer file an appeal under Chapter 6 (commencing with
Section 19301), of this part in conjunction with the appeal filed
under paragraph (4).
   (c) A taxpayer's election under this section shall be made for all
taxable years of the taxpayer governed by this chapter. A separate
election for each taxable year governed by this chapter is not
allowed.


19753.  (a) This chapter does not apply to violations of this part
for which, as of December 31, 2003, any of the following applies:
   (1) A criminal complaint was filed against the taxpayer in
connection with an abusive tax avoidance transaction or transactions.
   (2) The taxpayer is the subject of a criminal investigation in
connection with an abusive tax avoidance transaction or transactions.
   (b) No refund or credit shall be granted with respect to any
penalty paid prior to the time the taxpayer participates in the
voluntary compliance initiative authorized by this chapter.
   (c) For purposes of this chapter, an "abusive tax avoidance
transaction" means a plan or arrangement devised for the principal
purpose of avoiding tax. Abusive tax avoidance transactions include,
but are not limited to, "listed transactions" as described in
subdivision (a) of Section 18407.



19754.  (a) The voluntary compliance initiative described in this
chapter applies to any taxpayer who was not eligible to participate
in the Internal Revenue Service's Offshore Voluntary Compliance
Initiative described in Revenue Procedure 2003-11, and during the
period from January 1, 2004, to April 15, 2004, does both of the
following:
   (1) Files an amended tax return under this part for each taxable
year for which the taxpayer has previously filed a tax return using
an abusive tax avoidance transaction to underreport the taxpayer's
tax liability for that taxable year. Each amended return shall report
all income from all sources, without regard to the abusive tax
avoidance transaction.
   (2) Except as provided in subdivision (b), pays in full all taxes
and interest due.
   (b) The Franchise Tax Board may enter into an installment payment
agreement in lieu of the full payment required under paragraph (2) of
subdivision (a). Any installment payment agreement authorized by
this subdivision shall include interest on the unpaid amount at the
rate prescribed in Section 19521. Failure by the taxpayer to fully
comply with the terms of the installment payment agreement shall
render the waiver of penalties null and void, and the total amount of
tax, interest, and all penalties shall be immediately due and
payable.
   (c) After April 15, 2004, the Franchise Tax Board may issue a
deficiency assessment upon an amended return filed pursuant to
subdivision (a), impose penalties, or initiate criminal action under
this part with respect to the difference between the amount shown on
that return and the correct amount of tax. This action shall not
invalidate any waivers granted under Section 19752.
   (d) In addition to any other authority to examine returns, for the
purpose of improving state tax administration, the Franchise Tax
Board may inquire into the facts and circumstances related to the use
of abusive tax avoidance transactions to underreport the tax
liabilities for which a taxpayer has participated in the voluntary
compliance initiative under this chapter. Taxpayers shall cooperate
fully with inquiries described in this subdivision. Failure by a
taxpayer to fully cooperate in an inquiry described in this
subdivision shall render the waiver of penalties under this chapter
null and void and the taxpayer may be assessed any penalties that may
apply.


19755.  (a) Notwithstanding Section 19057, with respect to proposed
deficiency assessments related to an abusive tax avoidance
transaction, as defined in subdivision (c) of Section 19753, a notice
of a proposed deficiency assessment may be mailed to the taxpayer
within eight years after the return was filed, or within the period
otherwise provided in Article 3 (commencing with Section 19031) of
Chapter 4 of this part, whichever expires later.
   (b) This section shall apply to any return filed under this part
on or after January 1, 2000.


19778.  For any amended return filed after April 15, 2004, and
before the taxpayer is contacted by the Internal Revenue Service or
the Franchise Tax Board regarding a potentially abusive tax shelter,
then, for taxable years beginning after December 31, 1998, with
respect to any understatement of tax related to using reportable
transactions as defined in Section 18407, as added by the act adding
this section, the taxpayer is subject to interest as provided under
Section 19101 but at a rate of 150 percent of the adjusted annual
rate established under Section 19521.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Rtc > 19751-19778

REVENUE AND TAXATION CODE
SECTION 19751-19778



19751.  (a) The Franchise Tax Board shall develop and administer a
voluntary compliance initiative for taxpayers subject to Part 10
(commencing with Section 17001) and Part 11 (commencing with Section
23001), as provided in this chapter.
   (b) The voluntary compliance initiative shall be conducted during
the period from January 1, 2004, to April 15, 2004, inclusive,
pursuant to Section 19754. This initiative shall apply to tax
liabilities attributable to the use of abusive tax avoidance
transactions for taxable years beginning before January 1, 2003.
   (c) The Franchise Tax Board shall issue forms and instructions and
may take any other actions necessary, including the use of closing
agreements, to implement this chapter.
   (d) The Franchise Tax Board shall publicize the voluntary
compliance initiative so as to maximize public awareness of and
participation in the initiative. The Franchise Tax Board shall
coordinate to the highest degree possible its publicity efforts and
other actions taken in implementing this chapter.
   (e) Any correspondence mailed by the Franchise Tax Board to a
taxpayer at the taxpayer's last known address outlining the voluntary
compliance initiative under this chapter constitutes "contact"
within the meaning of Treasury Regulation Section 1.6664-2(c)(3),
relating to qualified amended returns, and paragraph (3) of
subdivision (e) of Section 19773 and Section 19777, regarding
increased interest rate.



19752.  Any taxpayer who meets the requirements of Section 19754 may
elect the application of either, but not both, of the following:
   (a) Voluntary compliance without appeal. If this option is
elected, then each of the following shall apply:
   (1) The Franchise Tax Board shall waive or abate all penalties
imposed by this part, for all taxable years where the taxpayer elects
to participate in the initiative, as a result of the underreporting
of tax liabilities attributable to the use of abusive tax avoidance
transactions.
   (2) Except as provided in Section 19753, no criminal action shall
be brought against the taxpayer for the taxable years with respect to
issues for which the taxpayer voluntarily complies under this
chapter.
   (3) No penalty may be waived or abated under this chapter if the
penalty imposed is attributable to an assessment of taxes that became
final prior to December 31, 2003.
   (4) Notwithstanding Chapter 6 (commencing with Section 19301) of
this part, the taxpayer may not file a claim for refund for the
amounts paid in connection with abusive tax avoidance transactions
under this chapter.
   (b) Voluntary compliance with appeal. If this option is elected,
then each of the following shall apply:
   (1) The Franchise Tax Board shall waive or abate all penalties,
except the accuracy-related penalty under Section 19164 (as in effect
immediately before enactment of the act adding this section),
imposed by this part, for each of the taxable years for which the
taxpayer elects to participate in the initiative, that are owed as a
result of the underreporting of tax liabilities attributable to the
use of abusive tax avoidance transactions.
   (2) Except as provided in Section 19753, no criminal action may be
brought against the taxpayer for each of the taxable years for which
the taxpayer voluntarily complies under this section.
   (3) No penalty may be waived under this chapter if the penalty
imposed is attributable to an assessment of taxes that became due and
payable prior to December 31, 2003.
   (4) The taxpayer may file a claim for refund under Chapter 6
(commencing with Section 19301) of this part. Notwithstanding Section
19331, the taxpayer may not file an appeal to the board until after
either of the following:
   (A) The date the Franchise Tax Board takes action on the claim for
refund for the tax year to which this chapter applies.
   (B) The later of either of the following dates:
   (i) The date that is 180 days after the date of a final
determination by the Internal Revenue Service with respect to the
transaction or transactions to which this chapter applies.
   (ii) The date that is four years after the date the claim for
refund was filed or one year after full payment of all tax, including
penalty and interest was made, whichever date is later.
   (5) The taxpayer shall be subject to the accuracy-related penalty
under Section 19164.
   (A) The penalty may be assessed:
   (i) When the Franchise Tax Board takes action on the claim for
refund.
   (ii) When a federal determination becomes final for the same
issue, in which case the penalty shall be assessed (and may not be
abated) if the penalty was assessed at the federal level.
   (B) In determining the amount of the underpayment of tax, Treasury
Regulation Section 1.6664-2(c)(2), as promulgated under Section 6664
of the Internal Revenue Code, relating to qualified amended returns,
shall not apply. The amount of the underpayment is the difference
between the amount of tax shown on the original return and the
correct amount of tax for the taxable year. The underpayment amount
shall not be less than the amount of the claim for refund filed by
the taxpayer under paragraph (4) that was denied.
   (C) The penalty is due and payable upon notice and demand pursuant
to Section 19049. Only after the taxpayer has paid all amounts due,
including the penalty, and the claim is denied in whole or in part,
may the taxpayer file an appeal under Chapter 6 (commencing with
Section 19301), of this part in conjunction with the appeal filed
under paragraph (4).
   (c) A taxpayer's election under this section shall be made for all
taxable years of the taxpayer governed by this chapter. A separate
election for each taxable year governed by this chapter is not
allowed.


19753.  (a) This chapter does not apply to violations of this part
for which, as of December 31, 2003, any of the following applies:
   (1) A criminal complaint was filed against the taxpayer in
connection with an abusive tax avoidance transaction or transactions.
   (2) The taxpayer is the subject of a criminal investigation in
connection with an abusive tax avoidance transaction or transactions.
   (b) No refund or credit shall be granted with respect to any
penalty paid prior to the time the taxpayer participates in the
voluntary compliance initiative authorized by this chapter.
   (c) For purposes of this chapter, an "abusive tax avoidance
transaction" means a plan or arrangement devised for the principal
purpose of avoiding tax. Abusive tax avoidance transactions include,
but are not limited to, "listed transactions" as described in
subdivision (a) of Section 18407.



19754.  (a) The voluntary compliance initiative described in this
chapter applies to any taxpayer who was not eligible to participate
in the Internal Revenue Service's Offshore Voluntary Compliance
Initiative described in Revenue Procedure 2003-11, and during the
period from January 1, 2004, to April 15, 2004, does both of the
following:
   (1) Files an amended tax return under this part for each taxable
year for which the taxpayer has previously filed a tax return using
an abusive tax avoidance transaction to underreport the taxpayer's
tax liability for that taxable year. Each amended return shall report
all income from all sources, without regard to the abusive tax
avoidance transaction.
   (2) Except as provided in subdivision (b), pays in full all taxes
and interest due.
   (b) The Franchise Tax Board may enter into an installment payment
agreement in lieu of the full payment required under paragraph (2) of
subdivision (a). Any installment payment agreement authorized by
this subdivision shall include interest on the unpaid amount at the
rate prescribed in Section 19521. Failure by the taxpayer to fully
comply with the terms of the installment payment agreement shall
render the waiver of penalties null and void, and the total amount of
tax, interest, and all penalties shall be immediately due and
payable.
   (c) After April 15, 2004, the Franchise Tax Board may issue a
deficiency assessment upon an amended return filed pursuant to
subdivision (a), impose penalties, or initiate criminal action under
this part with respect to the difference between the amount shown on
that return and the correct amount of tax. This action shall not
invalidate any waivers granted under Section 19752.
   (d) In addition to any other authority to examine returns, for the
purpose of improving state tax administration, the Franchise Tax
Board may inquire into the facts and circumstances related to the use
of abusive tax avoidance transactions to underreport the tax
liabilities for which a taxpayer has participated in the voluntary
compliance initiative under this chapter. Taxpayers shall cooperate
fully with inquiries described in this subdivision. Failure by a
taxpayer to fully cooperate in an inquiry described in this
subdivision shall render the waiver of penalties under this chapter
null and void and the taxpayer may be assessed any penalties that may
apply.


19755.  (a) Notwithstanding Section 19057, with respect to proposed
deficiency assessments related to an abusive tax avoidance
transaction, as defined in subdivision (c) of Section 19753, a notice
of a proposed deficiency assessment may be mailed to the taxpayer
within eight years after the return was filed, or within the period
otherwise provided in Article 3 (commencing with Section 19031) of
Chapter 4 of this part, whichever expires later.
   (b) This section shall apply to any return filed under this part
on or after January 1, 2000.


19778.  For any amended return filed after April 15, 2004, and
before the taxpayer is contacted by the Internal Revenue Service or
the Franchise Tax Board regarding a potentially abusive tax shelter,
then, for taxable years beginning after December 31, 1998, with
respect to any understatement of tax related to using reportable
transactions as defined in Section 18407, as added by the act adding
this section, the taxpayer is subject to interest as provided under
Section 19101 but at a rate of 150 percent of the adjusted annual
rate established under Section 19521.