Taxation
Ca. Tax Lawyer 2016, VOLUME 25, NUMBER 3
Content
- Bar Business Taxation Section Overview
- Clean Break: Terminating Agency Relationship with Key Corporation
- Contents
- Masthead
- Message from the Chair
- Order Out of Chaos ̶ Making [the Other Half of] California's Trust Taxation System Work
- Taxation Section 2015-2016 Leadership Directory
- The United State Income Tax Treatment of Australian Superannuation Funds Owned by U.S. Persons (Part 1 of 2)
- Visiting the Committees
- Proposal to Amend Revenue and Taxation Code Section 19255 to Avoid Extension of the 20-Year Statute of Limitations by Unilateral Action of the California Franchise Tax Board
Proposal to Amend Revenue and Taxation Code Section 19255 to Avoid Extension of the 20-Year Statute of Limitations by Unilateral Action of the California Franchise Tax Board1
By Andrew D. Allen2
EXECUTIVE SUMMARY
Prior to 2006, California did not have a statute of limitations providing for a specified amount of time to collect a due and payable outstanding tax liability. Apart from limited discretion authorizing certain state agencies to discharge small amounts of taxes, licenses, or fees if the debts were deemed uncollectible, or did not exceed a very low threshold amount, there were no time restrictions placed on the California Franchise Tax Board from collecting stale outstanding liabilities.
In 2005, California passed Assembly Bill 911 which became section 19255 of the California Revenue & Taxation Code.3 In short, Section 19255 prohibits the collection of an outstanding tax liability after the passage of 20 years from the date the tax liability becomes "due and payable."