2005 California Revenue and Taxation Code Sections 30221-30225 Article 3. Determinations If No Report or Return Made

30221.  If any person fails to make a report or return, the board
shall make an estimate of the number of cigarettes or the wholesale
cost of tobacco products distributed by him or her.  The estimate
shall be made for the month or months in respect to which the person
failed to make a report or return and shall be based upon any
information available to the board.  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 for one or
for more than one month.
30222.  In making a determination the board may offset overpayments
for a month or months against underpayments for another month or
months and against interest and penalties on the underpayments.
30223.  The amount of the determination, exclusive of penalties,
shall bear interest at the modified adjusted rate per month, or
fraction thereof, established pursuant to Section 6591.5, from the
date the amount, or any portion thereof, should have been reported
until the date of payment.
30224.  If the failure of a person to file a report is due to fraud
or an intent to evade the tax, a penalty of 25 percent of the amount
required to be paid by the person, exclusive of penalties, shall be
added thereto in addition to the 10 percent penalty provided in
Section 30221.
30225.  Promptly after making its determination the board shall give
to the person written notice of its estimate and determination, and
of the penalty, the notice to be served personally or by mail in the
manner prescribed for service of notice of a deficiency
determination.