2005 California Revenue and Taxation Code Sections 43201-43204 Article 2. Deficiency Determinations

43201.  (a) If the board is dissatisfied with the return or report
filed or the amount of tax paid to the state by any taxpayer, or if
no return or report has been filed or no payment or payments of the
taxes have been made to the state by a taxpayer, the board may
compute and determine the amount to be paid, based upon any
information available to it.  In addition, where the board is
authorized to collect a tax for another state agency, the board may
issue a notice of determination or similar billing document for
collection of the tax.  One or more additional 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 date the amount of the tax, or any portion
thereof, became due and payable 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 the interest and penalties on the underpayments.
   (b) If any part of the deficiency for which a determination of an
additional amount due is found to have been occasioned by negligence
or intentional disregard of this part or authorized regulations, a
penalty of 10 percent of the amount of the determination shall be
added, plus interest as provided above.
   (c) If any part of the deficiency for which a determination of an
additional amount due is found to be occasioned by fraud or an intent
to evade this part or authorized regulations, a penalty of 25
percent of the amount of the determination shall be added, plus
interest as provided in subdivision (a).
   (d) The board shall give to the taxpayer written notice of its
determination.  The notice shall be placed in a sealed envelope, with
postage paid, addressed to the taxpayer at his or her address as it
appears in the records of the board.  The giving of notice shall be
deemed complete at the time of the deposit of the notice in a United
States Post Office, or a mailbox, sub-post office, substation or mail
chute, or other facility regularly maintained or provided by the
United States Postal Service without extension of time for any
reason.  In lieu of mailing, a notice may be served personally by
delivering to the person to be served, and service shall be deemed
complete at the time of delivery.  Personal service to a corporation
may be made by delivery of a notice to any person designated in the
Code of Civil Procedure to be served for the corporation with summons
and complaint in a civil action.
43202.  (a) Except in the case of fraud, intent to evade this part,
authorized rules and regulations, or failure to make a return, every
notice of a determination of an additional amount due shall be given
within three years after the date when the amount should have been
paid or the return was due, or within three years after the return
was filed, whichever period expires later.  In the case of failure to
make a return, the notice of determination shall be mailed within
eight years after the date the report or return was due.
   (b) The limitation specified in  subdivision (a) shall not apply
to a liability for the fee imposed pursuant to Section 25205.5 of the
Health and Safety Code which is proposed to be determined with
respect to a taxpayer if a notice of determination for the fee
imposed pursuant to Section 25205.2 of the Health and Safety Code has
been given pursuant to Section 43201 or 43350 for the same period
and site, or with respect to a taxpayer that has paid the fee imposed
by Section 25205.2 of the Health and Safety Code for the same period
and site.  The notice of determination with respect to the fee
imposed pursuant to Section 25205.5 of the Health and Safety Code
shall be given within 90 days from the date of final board action or
final judicial action, whichever is later, concerning liability for
the fee imposed pursuant to Section 25205.2 of the Health and Safety
Code.
   (c) The limitation specified in  subdivision (a) shall not apply
to a liability for the fee imposed pursuant to Section 25205.2 of the
Health and Safety Code which is proposed to be determined with
respect to a taxpayer if a notice of determination for the fee
imposed pursuant to Section 25205.5 of the Health and Safety Code has
been given pursuant to Section 43201 or 43350 for the same period
and site, or with respect to a taxpayer that has paid the fee imposed
by Section 25205.5 of the Health and Safety Code for the same period
and site.  The notice of determination with respect to the fee
imposed pursuant to Section 25205.2 of the Health and Safety Code
shall be given within 90 days from the date of final board action or
final judicial action, whichever is later, concerning liability for
the fee imposed pursuant to Section 25205.5 of the Health and Safety
Code.
43203.  In the case of a deficiency arising under this part during
the lifetime of a decedent, a notice of deficiency determination
shall be mailed within four months after written request therefor, in
the form required by the board, by the fiduciary of the estate or
trust or by any other person liable for the tax or any portion
thereof.
43204.  If before the expiration of the time prescribed in Section
43202 for the mailing of a notice of deficiency determination the
taxpayer has consented in writing to the mailing of the notice after
such time, the notice may be mailed at any time prior to the
expiration of the period agreed upon.  The period so agreed upon may
be extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon.