2005 California Revenue and Taxation Code Sections 41095-41098 Article 6. Interest and Penalties

41095.  (a) Any person who fails to pay any surcharge to the state
or any amount of surcharge required to be collected and paid to the
state, except amounts of determinations made by the board under
Article 3 (commencing with Section 41070) or Article 4 (commencing
with Section 41080), within the time required shall pay a penalty of
10 percent of the surcharge or amount of the surcharge or ten dollars
($10), whichever is greater, in addition to the surcharge or amount
of surcharge, plus interest at the modified adjusted rate per month,
or fraction thereof, established pursuant to Section 6591.5, from the
date on which the surcharge or the amount of surcharge required to
be collected became due and payable to the state until the date of
payment.
   (b) Any person who fails to file a return in accordance with the
due date set forth in Section 41052 or the due date established by
the board in accordance with Section 41052.1, shall pay a penalty of
10 percent of the amount of the surcharge with respect to the period
for which the return is required, or ten dollars ($10), whichever is
greater.
   (c) The penalties imposed by this section shall be limited to
either 10 percent of the surcharge for which the return is required
for any one return, or ten dollars ($10), whichever is greater.
41096.  (a) If the board finds that a person's failure to make a
timely 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 41060,
41080, 41090, and 41095.
   (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.
41097.  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
41054, 41060, 41082, and 41095.
   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.
41097.5.  (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
taxpayer.
   (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.
41098.  (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
surcharge 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 the
surcharge 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 the surcharge, or stating the
conditions under which the activity or transaction is subject to the
surcharge.
   (3) The liability for surcharges 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 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.