2005 California Revenue and Taxation Code Sections 32291 Article 3. Determinations if No Return Made

32291.  If any taxpayer fails to make a return required by this
part, the board shall make an estimate, based upon any information
available to it, for the period or periods with respect to which the
taxpayer failed to make a return of all alcoholic beverages sold in
this state by him or her.  Upon the basis of this estimate the board
shall compute and determine the amount required to be paid to the
state, adding to the sum thus fixed a penalty equal to 10 percent
thereof.  One or more determinations may be made of the amount of tax
due for one or for more than one period.  The amount of tax so
determined shall bear interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from the 15th day of the month following the close of the period for
which the amount of the tax, or any portion thereof, should have been
returned until the date of payment.  In making a determination the
board may offset overpayments for a period or periods against
underpayments for another period or periods and against interest and
penalties on the underpayments.  If any part of the deficiency for
which a determination is made is due to negligence or intentional
disregard of this part or authorized rules, an additional penalty of
10 percent of the amount of the determination shall be added.  If the
neglect or refusal of a taxpayer to file a return as required by
this part was due to fraud or an intent to evade the tax, there shall
be added to the tax a penalty equal to 25 percent thereof in
addition to the 10 percent penalty.  The board shall give to the
taxpayer written notice of the estimate and determination, the notice
to be served personally or by mail in the same manner as prescribed
for service of notice by Section 32271.