ARTICLE 2. Deficiency Determinations [30201. - 30208.]

Cal. Revenue and Taxation Code - RTC 2.

in effect

Cal. Revenue and Taxation Code - RTC § 30201. Section 30201.

If the board is dissatisfied with the report or return filed by any person, it may compute and determine the amount to be paid upon the basis of any information available to it. One or more deficiency determinations may be made of the amount of tax due for one or for more than one month.

Cal. Revenue and Taxation Code - RTC § 30202. Section 30202.

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 of the tax, or any portion thereof, should have been reported until the date of payment.

Cal. Revenue and Taxation Code - RTC § 30203. Section 30203.

In making a determination the board may offset overpayments for a month or months against underpayments for another month or months and against the interest and penalties on the underpayments.

Cal. Revenue and Taxation Code - RTC § 30204. Section 30204.

If any part of the deficiency for which a deficiency determination is made is due to negligence or intentional disregard of this part or the rules and regulations adopted under this part, a penalty of 10 percent of the amount of the determination shall be added thereto.

Cal. Revenue and Taxation Code - RTC § 30205. Section 30205.

If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade this part or the rules and regulations adopted under this part, a penalty of 25 percent of the amount of the determination shall be added thereto.

Cal. Revenue and Taxation Code - RTC § 30206. Section 30206.

The department shall give the person written notice of its determination. The notice shall be served in one of the following manners: (a) By placing the notice in a sealed envelope, with postage paid, addressed to the person at their address as it appears in the records of the department. Service made pursuant to this subdivision shall be deemed complete at the time of deposit of the notice in the 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. (b) By personally delivering the notice to the person to be served. Service made pursuant to this subdivision shall be deemed complete at the time of such 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. (c) (1) By delivering the notice electronically via secure transmission when either of the following applies: (A) The taxpayer requests the notice of determination to be sent electronically via secure transmission. (B) The department has evidence that the taxpayer no longer receives mail at the address of record and has previously provided an address for electronic mail. (2) Service provided pursuant to paragraph (1) shall be deemed complete at the time the department electronically transmits the notice via the taxpayer’s secure web portal, without extension of time for any reason.

Cal. Revenue and Taxation Code - RTC § 30207. Section 30207.

Except in the case of fraud, intent to evade the tax, or failure to make a report or return, every notice of a deficiency determination shall be served within three years after the 25th day of the month following the month for which the amount should have been paid or the report or return was due, or within three years after the report or return was filed, whichever period expires later. In the case of failure to make a report or return, the notice of determination shall be served within eight years after the date the report or return was due.

Cal. Revenue and Taxation Code - RTC § 30207.1. Section 30207.1.

In the case of a deficiency arising under this part during the lifetime of a decedent, a notice of deficiency determination shall be served within four months after written request therefor, in the form required by the department, by the fiduciary of the estate or trust or by any other person liable for the tax or any portion thereof.

Cal. Revenue and Taxation Code - RTC § 30208. Section 30208.

If before the expiration of the time prescribed in Section 30207 for serving a notice of deficiency determination the taxpayer has consented in writing to the service of the notice after such time, the notice may be served 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.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026