2005 California Revenue and Taxation Code Sections 7651-7658.5 Article 1. Returns, Reports, and Payments

7651.  Each supplier shall prepare and file with the board a return
in the form as prescribed by the board, which may include, but not be
limited to, electronic media showing the total number of gallons of
motor vehicle fuel removed, sold, or entered within this state during
each calendar month, or that monthly period ended during that
calendar month as the board may authorize, the amount of tax due for
the month covered by the return, and other information as the board
deems necessary for the proper administration of this part.  The
person shall file the return on or before the last day of the month
following the monthly period to which it relates, together with a
remittance payable to the Controller for the amount of tax due for
that period less whatever amounts may have been paid theretofore for
the same period because of returns, prepayment forms, and payments
made on a weekly basis.  To facilitate the administration of this
part, the board may require the filing of the returns for other than
monthly periods.  Returns shall be authenticated in a form or
pursuant to methods as may be prescribed by the board.
7652.5.  (a) Each terminal operator shall prepare and file with the
board a report in the form as prescribed by the board, which may
include, but not be limited to, electronic media showing, for the
calendar month, or that monthly period ended during the calendar
month as the board may authorize, the following:
   (1) The name and license number of each person that is a position
holder at each terminal it operates;
   (2) The amount of motor vehicle fuel received at each terminal it
operates;
   (3) The identity of each position holder with respect to the rack
removals of motor vehicle fuel from each terminal it operates and the
volume and dates of the removals;
   (4) The amount of motor vehicle fuel stored at each terminal it
operates;
   (5) The destination (by state) of all motor vehicle fuel removed
at a terminal rack of each terminal it operates, to the extent that
information has been provided to the terminal operator; and
   (6) Any other information required by the board for the proper
administration of this part.
   The terminal operator shall file the report on or before the last
day of the month following the monthly period to which it relates.
To facilitate the administration of this part, the board may require
the filing of the reports for other than monthly periods.  Reports
shall be authenticated in a form or pursuant to methods as may be
prescribed by the board.
   (b) Upon written approval of the board, a terminal operator may
satisfy the requirements of subdivision (a) above by executing and
providing to the board a consent and authorization for the Internal
Revenue Service to provide to the board under Section 6103 of the
Internal Revenue Code, the return filed by the terminal operator
under Section 48.4101-2 of Title 26 of the Code of Federal
Regulations.  The board may, in its sole discretion, rescind its
approval and require a terminal operator to file reports as specified
in subdivision (a).
7652.7.  (a) Each pipeline operator and vessel operator shall
prepare and file with the board a report in the form as prescribed by
the board, which may include, but not be limited to, electronic
media showing, for the calendar month, or that monthly period ended
during the calendar month as the board may authorize, all of the
following:
   (1) The amount of motor vehicle fuel delivered to each terminal or
refinery.
   (2) The location of the terminal or refinery where the motor
vehicle fuel was delivered.
   (3) The date of delivery.
   (4) Any other information required by the board for the proper
administration of this part.
   The pipeline operator and vessel operator shall file the report on
or before the last day of the month following the monthly period to
which it relates.  To facilitate the administration of this part, the
board may require the filing of the reports for other than monthly
periods.  Reports shall be authenticated in a form or pursuant to
methods as may be prescribed by the board.
   (b) Upon written approval of the board, a pipeline operator and
vessel operator may satisfy the requirements of subdivision (a) by
executing and providing to the board a consent and authorization for
the Internal Revenue Service to provide to the board under Section
6103 of the Internal Revenue Code, the return filed by the pipeline
operator and vessel operator under Section 48.4101-2 of Title 26 of
the Code of Federal Regulations.  The board may, in its sole
discretion, rescind its approval and require a pipeline operator and
vessel operator to file reports as specified in subdivision (a).
7653.  (a) Each person subject to the tax imposed under Section
7361, on or before February 28, 2002, shall prepare and file with the
board, on forms prescribed by the board, a return showing the total
number of gallons of motor vehicle fuel owned by the person on
January 1, 2002, for which a tax has not been imposed under Part 2
(commencing with Section 7301) as in effect on December 31, 2001, the
amount of the tax imposed, and any other information that the board
deems necessary for the proper administration of this part.  The
return shall be accompanied by a remittance payable to the Controller
in the amount of tax due.
   (b) Any distributor, as defined in paragraph (3) of subdivision
(b) of Section 7361, who has tax-paid motor vehicle fuel in the bulk
transfer/terminal system on January 1, 2002, which was purchased
prior to January 1, 2002, shall report the tax-paid gallons on the
subdivision (a) return.  The amount of taxes paid on the tax-paid
gallons shall constitute a credit against the amount of taxes due and
payable on the subdivision (a) return, or on the supplier's January
2002 return required under Section 7651, and for each succeeding
return until the credit is fully utilized.
7655.  (a) Any person who fails to pay the amount of tax shown to be
due by his or her return on or before the last day of the month
following the monthly period to which it relates shall pay a penalty
of 10 percent of the tax, together with interest on that tax at the
modified adjusted rate per month, or fraction thereof, established
pursuant to Section 6591.5, from the date on which the tax became due
and payable to the state until the date of payment.
   (b) Any supplier who fails to file a return in accordance with the
due date set forth in Section 7651 shall pay a penalty of 10 percent
of the amount of the tax, exclusive of prepayments, with respect to
the period for which the return is required.
   (c) The penalties imposed by this section shall be limited to a
maximum of 10 percent of the tax for which the return is required,
exclusive of any prepayments, for any one return.
7656.  The board for good cause may extend for not to exceed one
month the time for making any report or return or paying any tax
required under this part.  The extension may be granted at any time
if a request therefor is filed with the board within or prior to the
period for which the extension may be granted.
   Any person to whom an extension is granted shall pay, in addition
to the tax, interest at the modified adjusted rate per month, or
fraction thereof, established pursuant to Section 6591.5, from the
date on which the tax would have been due without the extension to
the date of payment.
7657.  (a) If the board finds that a person's failure to make a
timely report, return, or payment 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 may be relieved of the penalty provided
by Sections 7655, 7659.5, 7659.6, 7659.9 7660, 7705, and 7713.
   (b) Except as provided in subdivision (c), any person seeking to
be relieved of the penalty shall file with the board a statement
under penalty of perjury setting forth the facts upon which he or she
bases his or her claim for relief.
   (c) The board shall establish criteria that provide for efficient
resolution of requests for relief pursuant to this section.
7657.1.  (a) If the board finds that a person's failure to make a
timely return or payment is due to the person's reasonable reliance
on written advice from the board, the person may be relieved of the
taxes imposed by this part and any penalty or interest added thereto.
   (b) For purposes of this section, a person's failure to make a
timely return or payment shall be considered to be due to reasonable
reliance on written advice from the board, only if the board finds
that all of the following conditions are satisfied:
   (1) The person requested in writing that the board advise him or
her whether a particular activity or transaction is subject to tax
under this part.  The specific facts and circumstances of the
activity or transaction shall be fully described in the request.
   (2) The board responded in writing to the person regarding the
written request for advice, stating whether or not the described
activity or transaction is subject to tax, or stating the conditions
under which the activity or transaction is subject to tax.
   (3) The liability for taxes applied to a particular activity or
transaction which occurred before either of the following:
   (A) Before the board rescinded or modified the advice so given, by
sending written notice to the person of the rescinded or modified
advice.
   (B) Before a change in statutory or constitutional law, a change
in the board's regulations, or a final decision of a court, which
renders the board's earlier written advice no longer valid.
   (c) Any person seeking relief under this section shall file with
the board all of the following:
   (1) A copy of the person's written request to the board and a copy
of the board's written advice.
   (2) A statement under penalty of perjury setting forth the facts
on which the claim for relief is based.
   (3) Any other information which the board may require.
   (d) Only the person making the written request shall be entitled
to rely on the board's written advice to that person.
7658.  If the board finds that a person's failure to make a timely
return or payment was due to a disaster, and occurred notwithstanding
the exercise of ordinary care and the absence of willful neglect,
the person may be relieved of the interest provided by Sections 7655,
7656, 7659.9, 7661, and 7706.  Any person seeking to be relieved of
the interest shall file with the board a statement under penalty of
perjury setting forth the facts upon which he or she bases his or her
claim for relief.
7658.1.  (a) The board, in its discretion, may relieve all or any
part of the interest imposed on a person by this part where the
failure to pay tax is due in whole or in part to an unreasonable
error or delay by an employee of the board acting in his or her
official capacity.
   (b) For purposes of this section, an error or delay shall be
deemed to have occurred only if no significant aspect of the error or
delay is attributable to an act of, or a failure to act by, the
person.
   (c) Any person seeking relief under this section shall file with
the board a statement under penalty of perjury setting forth the
facts on which the claim for relief is based and any other
information which the board may require.
   (d) The board may grant relief only for interest imposed on tax
liabilities that arise during taxable periods commencing on or after
January 1, 2000.
7658.5.  Every payment on a delinquent tax shall be applied as
follows:
   (a) First, to any interest due on the tax.
   (b) Second, to any penalty imposed by this part.
   (c) The balance, if any, to the tax itself.