43441. If any taxpayer is delinquent in the payment of any
obligations imposed by this part, or in the event a determination has
been made against such a taxpayer which remains unpaid, the board
may, not later than three years after the payment becomes delinquent,
or within 10 years after the last recording of an abstract or copy
of judgment under Section 43412 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 their
possession or under their control any credits or other personal
property belonging to the taxpayer, or owing any debts to the
taxpayer. In the case of any state officer, department, or agency,
the notice shall be given to such officer, department, or agency
prior to the time it presents the claim of the delinquent taxpayer to
the Controller.
43442. After receiving the notice the person 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 first.
43443. All persons so notified shall immediately, after receipt of
the notice, advise the board of all credits, other personal property,
or debts in their possession, under their control, or owing by them.
If the notice seeks to prevent the transfer or other disposition of
a deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice, to be
effective, 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 at which the deposit is carried or at which the credits or
personal property is held. 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, the notice shall
only be effective with respect to an amount not in excess of the
amount, interest, and penalty due from the person.
43444. 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 such transfer or
disposition, the state is unable to recover the indebtedness of the
person with respect to whose obligation the notice was given.
43444.2. (a) 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 payments, credits other than payments, or
other personal property belonging to a taxpayer or other person
liable for any amount under this part to withhold from these credits
or other personal property the amount of any tax, interest, or
penalties due from the taxpayer or other person, or the amount of any
liability incurred by them under this part, and to transmit the
amount withheld to the board at the time it may designate. The notice
of levy shall have the same effect as a levy pursuant to a writ of
execution except for the continuing effect of the levy, as provided
in subdivision (b).
(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 sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, the term "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. The term "payments" does include any of
the following:
(1) Payments due for services of independent contractors,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the distributor, dealer, or
other person liable for the tax.
(3) Any other payments or credits due or becoming due the
distributor, dealer, or other person liable 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.
43444.3. (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil
Procedure, if the board determines upon receiving information from a
feepayer or other person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant to Section
43444.2 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.
43445. The remedies of the state provided for in this chapter are
cumulative, and no action taken by the board or Attorney General
constitutes an election by the state or any of its officers to pursue
any remedy to the exclusion of any other remedy for which provision
is made in this part.
43446. 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 his or her
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 a 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 is subordinate
to the preferences given to claims for personal services by Sections
1204 and 1206 of the Code of Civil Procedure.
43447. The board shall not be subject to subdivisions (c) and (d)
of Section 16307 of the Corporations Code unless, at the time of
application for or issuance of a permit, license, or registration
number under this part, the applicant furnishes to the board a
written partnership agreement that provides that all business assets
shall be held in the name of the partnership.
43448. (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) 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 on 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 43306.
43448.5. The board, beginning no later than January 1, 2001, shall
provide each taxpayer who has an installment payment agreement in
effect under Section 43448 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.
43449. (a) A collection cost recovery fee shall be imposed on any
person that fails to pay an amount of tax, interest, penalty, or
other amount due and payable under this part. The collection cost
recovery fee shall be in an amount equal to the board's costs for
collection, as reasonably determined by the board. The collection
cost recovery fee shall be imposed only if the board has mailed its
demand 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.
(b) Interest shall not accrue with respect to the collection cost
recovery fee provided by this section.
(c) The collection cost recovery fee imposed pursuant to this
section shall be collected in the same manner as the collection of
any other tax imposed by this part.
(d) (1) If the board finds that a person's failure to pay any
amount under this part is due to reasonable cause and circumstances
beyond the person's control, and occurred notwithstanding the
exercise of ordinary care and the absence of willful neglect, the
person shall be relieved of the collection cost recovery fee provided
by this section.
(2) Any person seeking to be relieved of the collection cost
recovery fee shall file with the board a statement under penalty of
perjury setting forth the facts upon which the person bases the claim
for relief.
(e) Subdivision (a) shall be operative with respect to a demand
notice for payment which is mailed on or after January 1, 2011.
(f) Collection cost recovery fee revenues shall be deposited in
the same manner as revenues derived from any other tax imposed by
this part.
43441. If any taxpayer is delinquent in the payment of any
obligations imposed by this part, or in the event a determination has
been made against such a taxpayer which remains unpaid, the board
may, not later than three years after the payment becomes delinquent,
or within 10 years after the last recording of an abstract or copy
of judgment under Section 43412 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 their
possession or under their control any credits or other personal
property belonging to the taxpayer, or owing any debts to the
taxpayer. In the case of any state officer, department, or agency,
the notice shall be given to such officer, department, or agency
prior to the time it presents the claim of the delinquent taxpayer to
the Controller.
43442. After receiving the notice the person 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 first.
43443. All persons so notified shall immediately, after receipt of
the notice, advise the board of all credits, other personal property,
or debts in their possession, under their control, or owing by them.
If the notice seeks to prevent the transfer or other disposition of
a deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice, to be
effective, 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 at which the deposit is carried or at which the credits or
personal property is held. 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, the notice shall
only be effective with respect to an amount not in excess of the
amount, interest, and penalty due from the person.
43444. 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 such transfer or
disposition, the state is unable to recover the indebtedness of the
person with respect to whose obligation the notice was given.
43444.2. (a) 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 payments, credits other than payments, or
other personal property belonging to a taxpayer or other person
liable for any amount under this part to withhold from these credits
or other personal property the amount of any tax, interest, or
penalties due from the taxpayer or other person, or the amount of any
liability incurred by them under this part, and to transmit the
amount withheld to the board at the time it may designate. The notice
of levy shall have the same effect as a levy pursuant to a writ of
execution except for the continuing effect of the levy, as provided
in subdivision (b).
(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 sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, the term "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. The term "payments" does include any of
the following:
(1) Payments due for services of independent contractors,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the distributor, dealer, or
other person liable for the tax.
(3) Any other payments or credits due or becoming due the
distributor, dealer, or other person liable 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.
43444.3. (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil
Procedure, if the board determines upon receiving information from a
feepayer or other person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant to Section
43444.2 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.
43445. The remedies of the state provided for in this chapter are
cumulative, and no action taken by the board or Attorney General
constitutes an election by the state or any of its officers to pursue
any remedy to the exclusion of any other remedy for which provision
is made in this part.
43446. 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 his or her
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 a 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 is subordinate
to the preferences given to claims for personal services by Sections
1204 and 1206 of the Code of Civil Procedure.
43447. The board shall not be subject to subdivisions (c) and (d)
of Section 16307 of the Corporations Code unless, at the time of
application for or issuance of a permit, license, or registration
number under this part, the applicant furnishes to the board a
written partnership agreement that provides that all business assets
shall be held in the name of the partnership.
43448. (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) 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 on 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 43306.
43448.5. The board, beginning no later than January 1, 2001, shall
provide each taxpayer who has an installment payment agreement in
effect under Section 43448 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.
43449. (a) A collection cost recovery fee shall be imposed on any
person that fails to pay an amount of tax, interest, penalty, or
other amount due and payable under this part. The collection cost
recovery fee shall be in an amount equal to the board's costs for
collection, as reasonably determined by the board. The collection
cost recovery fee shall be imposed only if the board has mailed its
demand 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.
(b) Interest shall not accrue with respect to the collection cost
recovery fee provided by this section.
(c) The collection cost recovery fee imposed pursuant to this
section shall be collected in the same manner as the collection of
any other tax imposed by this part.
(d) (1) If the board finds that a person's failure to pay any
amount under this part is due to reasonable cause and circumstances
beyond the person's control, and occurred notwithstanding the
exercise of ordinary care and the absence of willful neglect, the
person shall be relieved of the collection cost recovery fee provided
by this section.
(2) Any person seeking to be relieved of the collection cost
recovery fee shall file with the board a statement under penalty of
perjury setting forth the facts upon which the person bases the claim
for relief.
(e) Subdivision (a) shall be operative with respect to a demand
notice for payment which is mailed on or after January 1, 2011.
(f) Collection cost recovery fee revenues shall be deposited in
the same manner as revenues derived from any other tax imposed by
this part.
43441. If any taxpayer is delinquent in the payment of any
obligations imposed by this part, or in the event a determination has
been made against such a taxpayer which remains unpaid, the board
may, not later than three years after the payment becomes delinquent,
or within 10 years after the last recording of an abstract or copy
of judgment under Section 43412 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 their
possession or under their control any credits or other personal
property belonging to the taxpayer, or owing any debts to the
taxpayer. In the case of any state officer, department, or agency,
the notice shall be given to such officer, department, or agency
prior to the time it presents the claim of the delinquent taxpayer to
the Controller.
43442. After receiving the notice the person 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 first.
43443. All persons so notified shall immediately, after receipt of
the notice, advise the board of all credits, other personal property,
or debts in their possession, under their control, or owing by them.
If the notice seeks to prevent the transfer or other disposition of
a deposit in a bank or other credits or personal property in the
possession or under the control of a bank, the notice, to be
effective, 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 at which the deposit is carried or at which the credits or
personal property is held. 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, the notice shall
only be effective with respect to an amount not in excess of the
amount, interest, and penalty due from the person.
43444. 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 such transfer or
disposition, the state is unable to recover the indebtedness of the
person with respect to whose obligation the notice was given.
43444.2. (a) 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 payments, credits other than payments, or
other personal property belonging to a taxpayer or other person
liable for any amount under this part to withhold from these credits
or other personal property the amount of any tax, interest, or
penalties due from the taxpayer or other person, or the amount of any
liability incurred by them under this part, and to transmit the
amount withheld to the board at the time it may designate. The notice
of levy shall have the same effect as a levy pursuant to a writ of
execution except for the continuing effect of the levy, as provided
in subdivision (b).
(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 sum of both of the following:
(A) The amount of the payments, credits other than payments, or
personal property described above and under the person's possession
or control when the notice of levy is served on the person.
(B) The amount of each payment that becomes due following service
of the notice of levy on the person and prior to the expiration of
the levy.
(d) For the purposes of this section, the term "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. The term "payments" does include any of
the following:
(1) Payments due for services of independent contractors,
dividends, rents, royalties, residuals, patent rights, or mineral or
other natural rights.
(2) Payments or credits due or becoming due periodically as a
result of an enforceable obligation to the distributor, dealer, or
other person liable for the tax.
(3) Any other payments or credits due or becoming due the
distributor, dealer, or other person liable 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.
43444.3. (a) Notwithstanding Article 7 (commencing with Section
706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil
Procedure, if the board determines upon receiving information from a
feepayer or other person liable for any amount under this part that
the person's employer withheld earnings for taxes pursuant to Section
43444.2 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.
43445. The remedies of the state provided for in this chapter are
cumulative, and no action taken by the board or Attorney General
constitutes an election by the state or any of its officers to pursue
any remedy to the exclusion of any other remedy for which provision
is made in this part.
43446. 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 his or her
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 a 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 is subordinate
to the preferences given to claims for personal services by Sections
1204 and 1206 of the Code of Civil Procedure.
43447. The board shall not be subject to subdivisions (c) and (d)
of Section 16307 of the Corporations Code unless, at the time of
application for or issuance of a permit, license, or registration
number under this part, the applicant furnishes to the board a
written partnership agreement that provides that all business assets
shall be held in the name of the partnership.
43448. (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) 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 on 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 43306.
43448.5. The board, beginning no later than January 1, 2001, shall
provide each taxpayer who has an installment payment agreement in
effect under Section 43448 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.
43449. (a) A collection cost recovery fee shall be imposed on any
person that fails to pay an amount of tax, interest, penalty, or
other amount due and payable under this part. The collection cost
recovery fee shall be in an amount equal to the board's costs for
collection, as reasonably determined by the board. The collection
cost recovery fee shall be imposed only if the board has mailed its
demand 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.
(b) Interest shall not accrue with respect to the collection cost
recovery fee provided by this section.
(c) The collection cost recovery fee imposed pursuant to this
section shall be collected in the same manner as the collection of
any other tax imposed by this part.
(d) (1) If the board finds that a person's failure to pay any
amount under this part is due to reasonable cause and circumstances
beyond the person's control, and occurred notwithstanding the
exercise of ordinary care and the absence of willful neglect, the
person shall be relieved of the collection cost recovery fee provided
by this section.
(2) Any person seeking to be relieved of the collection cost
recovery fee shall file with the board a statement under penalty of
perjury setting forth the facts upon which the person bases the claim
for relief.
(e) Subdivision (a) shall be operative with respect to a demand
notice for payment which is mailed on or after January 1, 2011.
(f) Collection cost recovery fee revenues shall be deposited in
the same manner as revenues derived from any other tax imposed by
this part.
