State Codes and Statutes

Statutes > California > Rtc > 38501-38505

REVENUE AND TAXATION CODE
SECTION 38501-38505



38501.  The board, whenever it deems it necessary to ensure
compliance with this part, may require any person subject thereto, to
place with it such security as the board may determine. Any security
in the form of cash, government bonds, or insured deposits in banks
or savings and loan institutions shall be held by the board in trust
to be used solely in the manner provided by this section and Section
38565. The amount of the security shall be fixed by the board but,
except as noted below, shall not be greater than twice the estimated
average liability of persons filing returns for quarterly periods or
three times the estimated average liability of persons required to
file returns for monthly periods, determined in such manner as the
board deems proper, or ten thousand dollars ($10,000), whichever
amount is the lesser. The limitations herein provided apply
regardless of the type of security placed with the board. The amount
of the security may be increased or decreased by the board subject to
the limitations herein provided. The board may sell the security at
public auction if it becomes necessary to do so in order to recover
any tax or any amount required to be collected, interest, or penalty
due. Notice of the sale may be served upon the person who placed the
security personally or by mail; if by mail, service shall be made in
the manner prescribed for service of a notice of a deficiency
determination and shall be addressed to the person at his or her
address as it appears in the records of the board. Security in the
form of a bearer bond issued by the United States or the State of
California which has a prevailing market price may, however, be sold
by the board at private sale at a price not lower than the prevailing
market price thereof. Upon any sale any surplus above the amounts
due shall be returned to the person who placed the security.



38502.  (a) If any person is delinquent in the payment of the amount
required to be paid by him or her or in the event a determination
has been made against him or her which remains unpaid, the board may,
not later than three years after the payment became delinquent or
within 10 years after the last recording of an abstract under Section
38523 or the last recording or filing of a notice of state tax lien
under Section 7171 of the Government Code, give notice thereof
personally or by first-class mail to all persons, including any
officer or department of the state or any political subdivision or
agency of the state, having in its possession or under its control
any credits or other personal property belonging to the delinquent,
or person against whom a determination has been made which remains
unpaid, or owing any debts to the delinquent or that person. In the
case of any state officer, department, or agency, the notice shall be
given to the officer, department, or agency prior to the time it
presents the claim of the delinquent taxpayer to the Controller.
After receiving the notice, the persons so notified shall neither
transfer nor make any other disposition of the credits, other
personal property, or debts in their possession or under their
control at the time they receive the notice until the board consents
to a transfer or disposition or until 60 days elapse after the
receipt of the notice, whichever period expires earlier. All persons
so notified shall forthwith, after receipt of the notice, advise the
board of all those credits, other personal property, or debts in
their possession, under their control, or owing by them.
   (b) If the notice seeks to prevent the transfer or other
disposition of a deposit in a bank or a state or federal savings and
loan association or other credits or personal property in the
possession or under the control of a bank or a state or federal
savings and loan association, the notice to be mailed shall state the
amount, interest, and penalty due from the person, and shall be
delivered or mailed to the branch or office of the bank or the state
or federal savings and loan association at which the deposit is
carried or at which the credits or personal property is held. A bank,
a state or federal savings and loan association, or a state or
federal credit union withholding any deposit or other credits or
personal property required to be withheld in which the delinquent
taxpayer and another person or persons have an interest, or held in
the name of a third party or parties in which the delinquent taxpayer
is ultimately determined to have no interest, is not liable therefor
to any of the persons who have an interest in the deposit or other
credits or personal property unless the deposit or other credits or
personal property is released or transferred to the delinquent
taxpayer.
   (c) In the case of a deposit or other credits or personal property
for which the transfer or other disposition is prevented, the
depository institution required to prevent transfer or other
disposition shall send a notice by first-class mail to each person
named on a deposit, other credits, or personal property included in
the notice from the board, provided a current address for each person
is available to the depository institution. This notice shall inform
each person as to the reason for preventing transfer or disposition
of the deposit or other credits or personal property, the amount
thereof which is prevented from transfer or other disposition, and
the date by which that amount is to be remitted to the board. An
institution may assess the deposit or other credits or personal
property of each person receiving this notice a reasonable service
charge not to exceed three dollars ($3).
   (d) Notwithstanding any other provision, with respect to a deposit
in a bank or other credits or personal property in the possession or
under the control of a bank or a state or federal savings and loan
association, the aggregate amount of deposits, credits, or personal
property to be withheld shall be an amount equal to two times the
amount of the tax, interest, or penalty due from the person. If,
during the effective period of the notice to withhold, any person so
notified makes any transfer or disposition of the property or debts
required to be withheld, to the extent of the value of the property
or the amount of the debts thus transferred or paid, he or she shall
be liable to the state for any indebtedness due under this part from
the person with respect to whose obligation the notice was given if
solely by reason of that transfer or disposition the state is unable
to recover the indebtedness of the person with respect to whose
obligation the notice was given.



38503.  (a) Subject to the limitations in subdivisions (b) and (c),
the board may, by notice of levy, served personally or by first-class
mail, require all persons having in their possession, or under their
control, any credits or other personal property belonging to a
timber owner liable for any amount under this part to withhold from
those credits or other personal property the amount of any tax,
interest, or penalties due from that timber owner, or the amount of
any liability incurred by him or her under this part, and to transmit
the amount withheld to the board at those times as it may designate.
   (b) The person served shall continue to withhold pursuant to the
notice of levy until the amount specified in the notice, including
accrued interest, has been paid in full, until the notice is
withdrawn, or until one year from the date the notice is received,
whichever occurs first.
   (c) The amount required to be withheld is the lesser of the
following:
   (1) The amount due stated on the notice.
   (2) The amount of each payment due or becoming due to the timber
owner during the period of the levy.
   (d) For the purposes of this section, "payments" does not include
earnings as that term is defined in subdivision (a) of Section
706.011 of the Code of Civil Procedure or funds in a deposit account
as defined in paragraph (29) of subdivision (a) of Section 9102 of
the Commercial Code. "Payments" does include all of the following:
   (1) Payments due for services for independent contractors,
dividends, rents, royalties, residuals, patent rights, mineral or
other natural rights.
   (2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the timber owner liable for
the tax.
   (3) Any other payments or credits due or becoming due the timber
owner as the result of written or oral contracts for services or
sales whether denominated as wages, salary, commission, bonus, or
otherwise.
   (e) In the case of a financial institution, to be effective, the
notice shall state the amount due from the taxpayer and shall be
delivered or mailed to the branch or office of the financial
institution where the credits or other property is held, unless
another branch or office is designated by the financial institution
to receive the notice.


38503.5.  (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code
of Civil Procedure, if the board determines upon receiving
information from a person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant to Section
38503 and failed to remit the withheld earnings to the board, the
employer shall be liable for the amount not remitted. The board's
determination shall be based on payroll documents or other
substantiating evidence furnished by the person liable for the tax.
   (b) Upon its determination, the board shall mail notice to the
employer at its last known address that upon failure to remit the
withheld earnings to the board within 15 days of the date of its
notice to the employer, the employer shall be liable for that amount
which was withheld and not remitted.
   (c) If the employer fails to remit the amount withheld to the
board upon notice, that amount for which the employer is liable shall
be determined, collected, and paid as though it were a tax
deficiency. The amount may be assessed at any time prior to seven
years from the first day that the unremitted amount, in the
aggregate, was first withheld. Interest shall accrue on that amount
from the first day that the unremitted amount, in the aggregate, was
first withheld.
   (d) When the determination against the employer is final and due
and payable, the person's account shall be immediately credited with
an amount equal to that determined amount as though it were a payment
received by the board on the first date that the unremitted amount,
in the aggregate, was first withheld by the employer.
   (e) Collection against the person liable for the tax is stayed for
both the following amount and period:
   (1) An amount equal to the amount determined by the board under
subdivision (a).
   (2) The earlier of the time the credit is applied to the person's
account pursuant to subdivision (d) or the determination against the
employer is withdrawn or revised and the person is notified by the
board thereof.
   (f) If under this section an amount that was withheld and not
remitted to the board is final and due and payable by the employer
and credited to the person's account, this remedy shall be the
exclusive remedy for the person to recover that amount from the
employer.
   (g) This section shall apply to determinations made by the board
on or after the effective date of the act adding this section.



38504.  (a) The board may, in its discretion, enter into a written
installment payment agreement with a person for the payment of any
taxes due, together with interest thereon and any applicable
penalties, in installments over an agreed period. With mutual
consent, the board and the taxpayer may alter or modify the
agreement.
   (b) Upon failure of a person to fully comply with the terms of an
installment payment agreement with the board, the board may terminate
the agreement by mailing a notice of termination to the person. The
notice shall include an explanation of the basis for the termination
and inform the person of his or her right to request an
administrative review of the termination. Fifteen days after the
mailing of the notice, the installment payment agreement shall be
void, and the total amount of the tax, interest, and penalties due
shall be immediately payable.
   (c) The board shall establish procedures for an administrative
review for persons requesting that review whose installment payment
agreements are terminated under subdivision (b). The collection of
taxes, interest, and penalties that are the subject of the terminated
installment payment agreement may not be stayed during this
administrative review process.
   (d) The notice requirement in subdivision (b) shall not apply to
any case where the board finds collection of the tax to be in
jeopardy.
   (e) Except in the case of fraud, if an installment payment
agreement is entered into within 45 days from the date in which the
board's notice of determination or redetermination becomes final, and
the person complies with the terms of the installment payment
agreement, the board shall relieve the penalty imposed pursuant to
Section 38446.


38504.5.  The board, beginning no later than January 1, 2001, shall
provide each taxpayer who has an installment payment agreement in
effect under Section 38504 an annual statement setting forth the
initial balance at the beginning of the year, the payments made
during the year, and the remaining balance as of the end of the year.




38505.  Except in any case where the board finds collection of the
tax to be in jeopardy, if any property has been levied upon, the
property or the proceeds from the sale of the property shall be
returned to the taxpayer if the board determines any one of the
following:
   (a) The levy on the property was not in accordance with the law.
   (b) The taxpayer has entered into and is in compliance with an
installment payment agreement pursuant to Section 38504 to satisfy
the tax liability for which the levy was imposed, unless that or
another agreement allows for the levy.
   (c) The return of the property will facilitate the collection of
the tax liability or will be in the best interest of the state and
the taxpayer.


State Codes and Statutes

Statutes > California > Rtc > 38501-38505

REVENUE AND TAXATION CODE
SECTION 38501-38505



38501.  The board, whenever it deems it necessary to ensure
compliance with this part, may require any person subject thereto, to
place with it such security as the board may determine. Any security
in the form of cash, government bonds, or insured deposits in banks
or savings and loan institutions shall be held by the board in trust
to be used solely in the manner provided by this section and Section
38565. The amount of the security shall be fixed by the board but,
except as noted below, shall not be greater than twice the estimated
average liability of persons filing returns for quarterly periods or
three times the estimated average liability of persons required to
file returns for monthly periods, determined in such manner as the
board deems proper, or ten thousand dollars ($10,000), whichever
amount is the lesser. The limitations herein provided apply
regardless of the type of security placed with the board. The amount
of the security may be increased or decreased by the board subject to
the limitations herein provided. The board may sell the security at
public auction if it becomes necessary to do so in order to recover
any tax or any amount required to be collected, interest, or penalty
due. Notice of the sale may be served upon the person who placed the
security personally or by mail; if by mail, service shall be made in
the manner prescribed for service of a notice of a deficiency
determination and shall be addressed to the person at his or her
address as it appears in the records of the board. Security in the
form of a bearer bond issued by the United States or the State of
California which has a prevailing market price may, however, be sold
by the board at private sale at a price not lower than the prevailing
market price thereof. Upon any sale any surplus above the amounts
due shall be returned to the person who placed the security.



38502.  (a) If any person is delinquent in the payment of the amount
required to be paid by him or her or in the event a determination
has been made against him or her which remains unpaid, the board may,
not later than three years after the payment became delinquent or
within 10 years after the last recording of an abstract under Section
38523 or the last recording or filing of a notice of state tax lien
under Section 7171 of the Government Code, give notice thereof
personally or by first-class mail to all persons, including any
officer or department of the state or any political subdivision or
agency of the state, having in its possession or under its control
any credits or other personal property belonging to the delinquent,
or person against whom a determination has been made which remains
unpaid, or owing any debts to the delinquent or that person. In the
case of any state officer, department, or agency, the notice shall be
given to the officer, department, or agency prior to the time it
presents the claim of the delinquent taxpayer to the Controller.
After receiving the notice, the persons so notified shall neither
transfer nor make any other disposition of the credits, other
personal property, or debts in their possession or under their
control at the time they receive the notice until the board consents
to a transfer or disposition or until 60 days elapse after the
receipt of the notice, whichever period expires earlier. All persons
so notified shall forthwith, after receipt of the notice, advise the
board of all those credits, other personal property, or debts in
their possession, under their control, or owing by them.
   (b) If the notice seeks to prevent the transfer or other
disposition of a deposit in a bank or a state or federal savings and
loan association or other credits or personal property in the
possession or under the control of a bank or a state or federal
savings and loan association, the notice to be mailed shall state the
amount, interest, and penalty due from the person, and shall be
delivered or mailed to the branch or office of the bank or the state
or federal savings and loan association at which the deposit is
carried or at which the credits or personal property is held. A bank,
a state or federal savings and loan association, or a state or
federal credit union withholding any deposit or other credits or
personal property required to be withheld in which the delinquent
taxpayer and another person or persons have an interest, or held in
the name of a third party or parties in which the delinquent taxpayer
is ultimately determined to have no interest, is not liable therefor
to any of the persons who have an interest in the deposit or other
credits or personal property unless the deposit or other credits or
personal property is released or transferred to the delinquent
taxpayer.
   (c) In the case of a deposit or other credits or personal property
for which the transfer or other disposition is prevented, the
depository institution required to prevent transfer or other
disposition shall send a notice by first-class mail to each person
named on a deposit, other credits, or personal property included in
the notice from the board, provided a current address for each person
is available to the depository institution. This notice shall inform
each person as to the reason for preventing transfer or disposition
of the deposit or other credits or personal property, the amount
thereof which is prevented from transfer or other disposition, and
the date by which that amount is to be remitted to the board. An
institution may assess the deposit or other credits or personal
property of each person receiving this notice a reasonable service
charge not to exceed three dollars ($3).
   (d) Notwithstanding any other provision, with respect to a deposit
in a bank or other credits or personal property in the possession or
under the control of a bank or a state or federal savings and loan
association, the aggregate amount of deposits, credits, or personal
property to be withheld shall be an amount equal to two times the
amount of the tax, interest, or penalty due from the person. If,
during the effective period of the notice to withhold, any person so
notified makes any transfer or disposition of the property or debts
required to be withheld, to the extent of the value of the property
or the amount of the debts thus transferred or paid, he or she shall
be liable to the state for any indebtedness due under this part from
the person with respect to whose obligation the notice was given if
solely by reason of that transfer or disposition the state is unable
to recover the indebtedness of the person with respect to whose
obligation the notice was given.



38503.  (a) Subject to the limitations in subdivisions (b) and (c),
the board may, by notice of levy, served personally or by first-class
mail, require all persons having in their possession, or under their
control, any credits or other personal property belonging to a
timber owner liable for any amount under this part to withhold from
those credits or other personal property the amount of any tax,
interest, or penalties due from that timber owner, or the amount of
any liability incurred by him or her under this part, and to transmit
the amount withheld to the board at those times as it may designate.
   (b) The person served shall continue to withhold pursuant to the
notice of levy until the amount specified in the notice, including
accrued interest, has been paid in full, until the notice is
withdrawn, or until one year from the date the notice is received,
whichever occurs first.
   (c) The amount required to be withheld is the lesser of the
following:
   (1) The amount due stated on the notice.
   (2) The amount of each payment due or becoming due to the timber
owner during the period of the levy.
   (d) For the purposes of this section, "payments" does not include
earnings as that term is defined in subdivision (a) of Section
706.011 of the Code of Civil Procedure or funds in a deposit account
as defined in paragraph (29) of subdivision (a) of Section 9102 of
the Commercial Code. "Payments" does include all of the following:
   (1) Payments due for services for independent contractors,
dividends, rents, royalties, residuals, patent rights, mineral or
other natural rights.
   (2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the timber owner liable for
the tax.
   (3) Any other payments or credits due or becoming due the timber
owner as the result of written or oral contracts for services or
sales whether denominated as wages, salary, commission, bonus, or
otherwise.
   (e) In the case of a financial institution, to be effective, the
notice shall state the amount due from the taxpayer and shall be
delivered or mailed to the branch or office of the financial
institution where the credits or other property is held, unless
another branch or office is designated by the financial institution
to receive the notice.


38503.5.  (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code
of Civil Procedure, if the board determines upon receiving
information from a person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant to Section
38503 and failed to remit the withheld earnings to the board, the
employer shall be liable for the amount not remitted. The board's
determination shall be based on payroll documents or other
substantiating evidence furnished by the person liable for the tax.
   (b) Upon its determination, the board shall mail notice to the
employer at its last known address that upon failure to remit the
withheld earnings to the board within 15 days of the date of its
notice to the employer, the employer shall be liable for that amount
which was withheld and not remitted.
   (c) If the employer fails to remit the amount withheld to the
board upon notice, that amount for which the employer is liable shall
be determined, collected, and paid as though it were a tax
deficiency. The amount may be assessed at any time prior to seven
years from the first day that the unremitted amount, in the
aggregate, was first withheld. Interest shall accrue on that amount
from the first day that the unremitted amount, in the aggregate, was
first withheld.
   (d) When the determination against the employer is final and due
and payable, the person's account shall be immediately credited with
an amount equal to that determined amount as though it were a payment
received by the board on the first date that the unremitted amount,
in the aggregate, was first withheld by the employer.
   (e) Collection against the person liable for the tax is stayed for
both the following amount and period:
   (1) An amount equal to the amount determined by the board under
subdivision (a).
   (2) The earlier of the time the credit is applied to the person's
account pursuant to subdivision (d) or the determination against the
employer is withdrawn or revised and the person is notified by the
board thereof.
   (f) If under this section an amount that was withheld and not
remitted to the board is final and due and payable by the employer
and credited to the person's account, this remedy shall be the
exclusive remedy for the person to recover that amount from the
employer.
   (g) This section shall apply to determinations made by the board
on or after the effective date of the act adding this section.



38504.  (a) The board may, in its discretion, enter into a written
installment payment agreement with a person for the payment of any
taxes due, together with interest thereon and any applicable
penalties, in installments over an agreed period. With mutual
consent, the board and the taxpayer may alter or modify the
agreement.
   (b) Upon failure of a person to fully comply with the terms of an
installment payment agreement with the board, the board may terminate
the agreement by mailing a notice of termination to the person. The
notice shall include an explanation of the basis for the termination
and inform the person of his or her right to request an
administrative review of the termination. Fifteen days after the
mailing of the notice, the installment payment agreement shall be
void, and the total amount of the tax, interest, and penalties due
shall be immediately payable.
   (c) The board shall establish procedures for an administrative
review for persons requesting that review whose installment payment
agreements are terminated under subdivision (b). The collection of
taxes, interest, and penalties that are the subject of the terminated
installment payment agreement may not be stayed during this
administrative review process.
   (d) The notice requirement in subdivision (b) shall not apply to
any case where the board finds collection of the tax to be in
jeopardy.
   (e) Except in the case of fraud, if an installment payment
agreement is entered into within 45 days from the date in which the
board's notice of determination or redetermination becomes final, and
the person complies with the terms of the installment payment
agreement, the board shall relieve the penalty imposed pursuant to
Section 38446.


38504.5.  The board, beginning no later than January 1, 2001, shall
provide each taxpayer who has an installment payment agreement in
effect under Section 38504 an annual statement setting forth the
initial balance at the beginning of the year, the payments made
during the year, and the remaining balance as of the end of the year.




38505.  Except in any case where the board finds collection of the
tax to be in jeopardy, if any property has been levied upon, the
property or the proceeds from the sale of the property shall be
returned to the taxpayer if the board determines any one of the
following:
   (a) The levy on the property was not in accordance with the law.
   (b) The taxpayer has entered into and is in compliance with an
installment payment agreement pursuant to Section 38504 to satisfy
the tax liability for which the levy was imposed, unless that or
another agreement allows for the levy.
   (c) The return of the property will facilitate the collection of
the tax liability or will be in the best interest of the state and
the taxpayer.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Rtc > 38501-38505

REVENUE AND TAXATION CODE
SECTION 38501-38505



38501.  The board, whenever it deems it necessary to ensure
compliance with this part, may require any person subject thereto, to
place with it such security as the board may determine. Any security
in the form of cash, government bonds, or insured deposits in banks
or savings and loan institutions shall be held by the board in trust
to be used solely in the manner provided by this section and Section
38565. The amount of the security shall be fixed by the board but,
except as noted below, shall not be greater than twice the estimated
average liability of persons filing returns for quarterly periods or
three times the estimated average liability of persons required to
file returns for monthly periods, determined in such manner as the
board deems proper, or ten thousand dollars ($10,000), whichever
amount is the lesser. The limitations herein provided apply
regardless of the type of security placed with the board. The amount
of the security may be increased or decreased by the board subject to
the limitations herein provided. The board may sell the security at
public auction if it becomes necessary to do so in order to recover
any tax or any amount required to be collected, interest, or penalty
due. Notice of the sale may be served upon the person who placed the
security personally or by mail; if by mail, service shall be made in
the manner prescribed for service of a notice of a deficiency
determination and shall be addressed to the person at his or her
address as it appears in the records of the board. Security in the
form of a bearer bond issued by the United States or the State of
California which has a prevailing market price may, however, be sold
by the board at private sale at a price not lower than the prevailing
market price thereof. Upon any sale any surplus above the amounts
due shall be returned to the person who placed the security.



38502.  (a) If any person is delinquent in the payment of the amount
required to be paid by him or her or in the event a determination
has been made against him or her which remains unpaid, the board may,
not later than three years after the payment became delinquent or
within 10 years after the last recording of an abstract under Section
38523 or the last recording or filing of a notice of state tax lien
under Section 7171 of the Government Code, give notice thereof
personally or by first-class mail to all persons, including any
officer or department of the state or any political subdivision or
agency of the state, having in its possession or under its control
any credits or other personal property belonging to the delinquent,
or person against whom a determination has been made which remains
unpaid, or owing any debts to the delinquent or that person. In the
case of any state officer, department, or agency, the notice shall be
given to the officer, department, or agency prior to the time it
presents the claim of the delinquent taxpayer to the Controller.
After receiving the notice, the persons so notified shall neither
transfer nor make any other disposition of the credits, other
personal property, or debts in their possession or under their
control at the time they receive the notice until the board consents
to a transfer or disposition or until 60 days elapse after the
receipt of the notice, whichever period expires earlier. All persons
so notified shall forthwith, after receipt of the notice, advise the
board of all those credits, other personal property, or debts in
their possession, under their control, or owing by them.
   (b) If the notice seeks to prevent the transfer or other
disposition of a deposit in a bank or a state or federal savings and
loan association or other credits or personal property in the
possession or under the control of a bank or a state or federal
savings and loan association, the notice to be mailed shall state the
amount, interest, and penalty due from the person, and shall be
delivered or mailed to the branch or office of the bank or the state
or federal savings and loan association at which the deposit is
carried or at which the credits or personal property is held. A bank,
a state or federal savings and loan association, or a state or
federal credit union withholding any deposit or other credits or
personal property required to be withheld in which the delinquent
taxpayer and another person or persons have an interest, or held in
the name of a third party or parties in which the delinquent taxpayer
is ultimately determined to have no interest, is not liable therefor
to any of the persons who have an interest in the deposit or other
credits or personal property unless the deposit or other credits or
personal property is released or transferred to the delinquent
taxpayer.
   (c) In the case of a deposit or other credits or personal property
for which the transfer or other disposition is prevented, the
depository institution required to prevent transfer or other
disposition shall send a notice by first-class mail to each person
named on a deposit, other credits, or personal property included in
the notice from the board, provided a current address for each person
is available to the depository institution. This notice shall inform
each person as to the reason for preventing transfer or disposition
of the deposit or other credits or personal property, the amount
thereof which is prevented from transfer or other disposition, and
the date by which that amount is to be remitted to the board. An
institution may assess the deposit or other credits or personal
property of each person receiving this notice a reasonable service
charge not to exceed three dollars ($3).
   (d) Notwithstanding any other provision, with respect to a deposit
in a bank or other credits or personal property in the possession or
under the control of a bank or a state or federal savings and loan
association, the aggregate amount of deposits, credits, or personal
property to be withheld shall be an amount equal to two times the
amount of the tax, interest, or penalty due from the person. If,
during the effective period of the notice to withhold, any person so
notified makes any transfer or disposition of the property or debts
required to be withheld, to the extent of the value of the property
or the amount of the debts thus transferred or paid, he or she shall
be liable to the state for any indebtedness due under this part from
the person with respect to whose obligation the notice was given if
solely by reason of that transfer or disposition the state is unable
to recover the indebtedness of the person with respect to whose
obligation the notice was given.



38503.  (a) Subject to the limitations in subdivisions (b) and (c),
the board may, by notice of levy, served personally or by first-class
mail, require all persons having in their possession, or under their
control, any credits or other personal property belonging to a
timber owner liable for any amount under this part to withhold from
those credits or other personal property the amount of any tax,
interest, or penalties due from that timber owner, or the amount of
any liability incurred by him or her under this part, and to transmit
the amount withheld to the board at those times as it may designate.
   (b) The person served shall continue to withhold pursuant to the
notice of levy until the amount specified in the notice, including
accrued interest, has been paid in full, until the notice is
withdrawn, or until one year from the date the notice is received,
whichever occurs first.
   (c) The amount required to be withheld is the lesser of the
following:
   (1) The amount due stated on the notice.
   (2) The amount of each payment due or becoming due to the timber
owner during the period of the levy.
   (d) For the purposes of this section, "payments" does not include
earnings as that term is defined in subdivision (a) of Section
706.011 of the Code of Civil Procedure or funds in a deposit account
as defined in paragraph (29) of subdivision (a) of Section 9102 of
the Commercial Code. "Payments" does include all of the following:
   (1) Payments due for services for independent contractors,
dividends, rents, royalties, residuals, patent rights, mineral or
other natural rights.
   (2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the timber owner liable for
the tax.
   (3) Any other payments or credits due or becoming due the timber
owner as the result of written or oral contracts for services or
sales whether denominated as wages, salary, commission, bonus, or
otherwise.
   (e) In the case of a financial institution, to be effective, the
notice shall state the amount due from the taxpayer and shall be
delivered or mailed to the branch or office of the financial
institution where the credits or other property is held, unless
another branch or office is designated by the financial institution
to receive the notice.


38503.5.  (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code
of Civil Procedure, if the board determines upon receiving
information from a person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant to Section
38503 and failed to remit the withheld earnings to the board, the
employer shall be liable for the amount not remitted. The board's
determination shall be based on payroll documents or other
substantiating evidence furnished by the person liable for the tax.
   (b) Upon its determination, the board shall mail notice to the
employer at its last known address that upon failure to remit the
withheld earnings to the board within 15 days of the date of its
notice to the employer, the employer shall be liable for that amount
which was withheld and not remitted.
   (c) If the employer fails to remit the amount withheld to the
board upon notice, that amount for which the employer is liable shall
be determined, collected, and paid as though it were a tax
deficiency. The amount may be assessed at any time prior to seven
years from the first day that the unremitted amount, in the
aggregate, was first withheld. Interest shall accrue on that amount
from the first day that the unremitted amount, in the aggregate, was
first withheld.
   (d) When the determination against the employer is final and due
and payable, the person's account shall be immediately credited with
an amount equal to that determined amount as though it were a payment
received by the board on the first date that the unremitted amount,
in the aggregate, was first withheld by the employer.
   (e) Collection against the person liable for the tax is stayed for
both the following amount and period:
   (1) An amount equal to the amount determined by the board under
subdivision (a).
   (2) The earlier of the time the credit is applied to the person's
account pursuant to subdivision (d) or the determination against the
employer is withdrawn or revised and the person is notified by the
board thereof.
   (f) If under this section an amount that was withheld and not
remitted to the board is final and due and payable by the employer
and credited to the person's account, this remedy shall be the
exclusive remedy for the person to recover that amount from the
employer.
   (g) This section shall apply to determinations made by the board
on or after the effective date of the act adding this section.



38504.  (a) The board may, in its discretion, enter into a written
installment payment agreement with a person for the payment of any
taxes due, together with interest thereon and any applicable
penalties, in installments over an agreed period. With mutual
consent, the board and the taxpayer may alter or modify the
agreement.
   (b) Upon failure of a person to fully comply with the terms of an
installment payment agreement with the board, the board may terminate
the agreement by mailing a notice of termination to the person. The
notice shall include an explanation of the basis for the termination
and inform the person of his or her right to request an
administrative review of the termination. Fifteen days after the
mailing of the notice, the installment payment agreement shall be
void, and the total amount of the tax, interest, and penalties due
shall be immediately payable.
   (c) The board shall establish procedures for an administrative
review for persons requesting that review whose installment payment
agreements are terminated under subdivision (b). The collection of
taxes, interest, and penalties that are the subject of the terminated
installment payment agreement may not be stayed during this
administrative review process.
   (d) The notice requirement in subdivision (b) shall not apply to
any case where the board finds collection of the tax to be in
jeopardy.
   (e) Except in the case of fraud, if an installment payment
agreement is entered into within 45 days from the date in which the
board's notice of determination or redetermination becomes final, and
the person complies with the terms of the installment payment
agreement, the board shall relieve the penalty imposed pursuant to
Section 38446.


38504.5.  The board, beginning no later than January 1, 2001, shall
provide each taxpayer who has an installment payment agreement in
effect under Section 38504 an annual statement setting forth the
initial balance at the beginning of the year, the payments made
during the year, and the remaining balance as of the end of the year.




38505.  Except in any case where the board finds collection of the
tax to be in jeopardy, if any property has been levied upon, the
property or the proceeds from the sale of the property shall be
returned to the taxpayer if the board determines any one of the
following:
   (a) The levy on the property was not in accordance with the law.
   (b) The taxpayer has entered into and is in compliance with an
installment payment agreement pursuant to Section 38504 to satisfy
the tax liability for which the levy was imposed, unless that or
another agreement allows for the levy.
   (c) The return of the property will facilitate the collection of
the tax liability or will be in the best interest of the state and
the taxpayer.