(a) (1) No levy may be made on any property or property right of any person unless the board has notified the person in writing of his or her rights as described in subparagraph (C) of paragraph (3) before the levy is made. Except as provided in subdivision (f), the notice shall be required only once for the taxable period to which the unpaid tax specified in subparagraph (A) of paragraph (3) relates. The notice shall not be required if the unpaid tax for which notice would otherwise be required under this paragraph is consolidated for collection purposes with a preexisting unpaid tax for which notice has been given under this paragraph.
(2) The notice required by paragraph (1) shall be made by first-class mail to the address of record not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax for the taxable period. Notice under paragraph (1) is not required if previous mail to the same address was returned undelivered with no forwarding address.
(3) The notice required under paragraph (1) shall specify, in simple and nontechnical terms, all of the following:
(A) The amount of unpaid tax.
(B) A telephone number to call in the event of any questions.
(C) The right of the person to request a review during the 30-day period described in paragraph (2).
(D) The proposed action or actions that may be taken by the Franchise Tax Board and the rights of the person with respect to the action or actions, including a brief statement that sets forth all of the following:
(i) The provisions of California law relating to levy and sale of property.
(ii) The procedures applicable to the levy and sale of property under California law.
(iii) The independent departmental administrative review available to the taxpayers with respect to the levy and sale and the procedures to obtain that review.
(iv) The alternatives available to taxpayers that could prevent levy on property, including installment agreements under Section 19008.
(v) California legal requirements and procedures with respect to the release of levy.
(b) (1) The Taxpayers’ Rights Advocate shall establish procedures for an independent departmental administrative review for taxpayers who request review under subparagraph (C) of paragraph (3) of subdivision (a).
(2) A person shall be entitled to only one review under this section with respect to the taxable period to which the unpaid tax specified in subparagraph (A) of paragraph (3) of subdivision (a) relates.
(3) An independent departmental administrative review under this subdivision shall be conducted by an officer or employee, or officers or employees, who have had no prior involvement with respect to the unpaid tax specified in subparagraph (A) of paragraph (3) of subdivision (a) before the first review under this section or Section 19225. A taxpayer may waive the requirement of this paragraph. Administrative review under this subdivision is not subject to Chapter 4.5 (commencing with Section 11400) of Part 1 of Division 3 of the Government Code.
(c) (1) The person or persons conducting the independent departmental administrative review shall obtain verification that the requirements of any applicable law or administrative procedures have been met by the board.
(2) The taxpayer may raise during the review any relevant issue relating to the unpaid tax or the lien, including any of the following:
(A) Appropriate spousal defenses.
(B) Challenges to the appropriateness of collection actions.
(C) Offers of collection alternatives, that may include the posting of a bond, the substitution of other assets, an installment agreement, or an offer in compromise.
(3) The determination of the person or persons conducting the review under this subdivision shall take into consideration all of the following:
(A) The verification presented under paragraph (1).
(B) The issues raised under paragraph (2).
(C) Whether any proposed collection action balances the need for the efficient collection of taxes with the legitimate concern of the person that any collection action not be more intrusive than necessary.
(4) An issue may not be raised during the review if:
(A) The issue was raised and considered at a previous review under this section or in any other administrative or judicial proceeding.
(B) The person seeking to raise the issue participated meaningfully in the review or proceeding.
(C) The issue meets the requirements of clause (i) or (ii) of Section 6702(b)(2)(A) of the Internal Revenue Code, as modified by Section 19179.
This paragraph does not apply to any issue with respect to a change in circumstances of that person that affects the determination.
(d) If review is requested under subparagraph (C) of paragraph (3) of subdivision (a), the levy actions that are the subject of the requested review shall be suspended for the period during which the review is pending. In no event shall any period expire before the 15th day after the day upon which there is a final determination in the review.
(e) This section does not apply if the board has made a finding under Section 19081 or Section 19082 that the collection of tax is in jeopardy except that the taxpayer shall be given the opportunity for the review described in this section within a reasonable period of time after the levy.
(f) If the board holds in abeyance the collection of a liability imposed under Part 10 (commencing with Section 17001) or Part 10.2 (commencing with Section 18401), that is final and otherwise due and payable, for a period in excess of six months from the date the hold is first placed on the account, the board shall thereafter mail to the taxpayer a notice prior to issuing a levy or filing or recording a notice of state tax lien.
(g) This section is operative for collection actions initiated after the date which is 180 days after the effective date of the act adding this section.
(h) Notwithstanding any other provision of this section, if the board determines that any portion of a request for review under this section meets the requirements of clause (i) or (ii) of Section 6702(b)(2)(A) of the Internal Revenue Code, as modified by Section 19179, then the Franchise Tax Board may treat that portion as if it were never submitted and that portion shall not be subject to any further administrative or judicial review.
(Amended by Stats. 2010, Ch. 14, Sec. 54. (SB 401) Effective January 1, 2011.)
Last modified: October 25, 2018