Could California relieve interest and penalties even when the amounts were assessed through a determination?

Plain-English summary

An electronics store in Los Angeles was damaged during the Rodney King riots and received relief from penalty and interest on taxes due for the second and third quarters of 1992. The relief request, damage records, returns, amounts, eligibility findings, and decision are not reproduced.

The source says the taxpayer filed an amended return on June 14, 1992 reporting $18,132 of additional tax, and California assessed $352.85 of interest by determination. It does not identify the amended return's tax period or expressly connect it to either relieved quarter. The original and amended returns, calculations, determination, notice, and payment record are absent.

The internal question was whether interest assessed by a determination could still be waived under Revenue and Taxation Code section 6593. Tax counsel concluded that the assessment method did not matter. If a taxpayer qualified for penalty or interest relief under section 6592's excusable-delay provision or section 6593's disaster provision, the Board could grant relief even when the amount had been assessed through a determination. No additional eligibility finding, adjustment, payment, claim, appeal, or later outcome is supplied.

The live annotation publishes only the determination-irrelevance rule. It omits the riot and store facts, prior relief, amended return and amounts, unidentified return period, section 6591 analysis, request provenance, named staff, and missing account record.

Common questions

Did the memorandum itself decide every eligibility requirement?

No. It answered only whether assessment by determination prevented relief; the taxpayer still had to qualify under section 6592 or 6593.

Why did section 6591's treatment of determinations not bar relief?

The memorandum distinguished section 6591's basic penalty rule from the separate relief authority in sections 6592 and 6593.

Citations and references

• California Revenue and Taxation Code sections 6592 and 6593 — identified for excusable-delay and disaster relief; complete texts, listed provisions, conditions, procedures, amendments, later history, and current law not supplied
• California Revenue and Taxation Code section 6591 — described for the late-payment rule and determination exceptions; complete text, interest treatment, exceptions, procedures, amendments, later history, and current law not supplied
• California Revenue and Taxation Code sections 6481 and 6511 — identified as starting sections for determination articles; complete texts, relationships, procedures, amendments, later history, and current law not supplied
• Prior relief, June 14, 1992 amended return, $18,132 tax, and $352.85 interest determination — underlying request, returns, period, calculations, records, decision, notice, and payment not reproduced
• April 22 request and June 11, 1993 response — no complete request, additional eligibility finding, adjustment, payment, claim, appeal, or later outcome supplied
• Official Annotation 320.0220's determination-irrelevance conclusion and date — omits the account facts, figures, unidentified period, other authority, provenance, named staff, missing records, later outcome, and reliance status and supplies no additional account record

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/320-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/320-0220.pdf

Original ruling text

State of California

Board of Equalization
Legal Division

Memorandum
To:

Mr. Frank Zuppan
Return Review Section - MIC:35

From:

Thomas J. Cooke
Tax Counsel

Subject:

The W--- S---, Inc.
Account No. SR -- XX-XXXXXX

320.0220
Date:

June 11, 1993

In a memorandum to the Legal Division dated April 22, 1993, you requested an opinion on whether interest assessed by a determination may be waived pursuant to Revenue and Taxation Code section 6593. The taxpayer, dba U--- R---'s, operated an electronics store in Los Angeles that was damaged in the Rodney King riots. The taxpayer requested and was granted relief from the interest and penalty on the taxes due for the second and third quarters of 1992. On June 14, 1992, the taxpayer filed an amended return self-assessing additional tax of $18,132.00 over that declared in the initial return. Interest of $352.85 was assessed on this additional tax by the issuance of a determination. Revenue and Taxation Code sections 6592 (Excusable Delay) and 6593 (Disaster) permit the Board to relieve a taxpayer of the interest and/or penalty provided by various code sections (including section 6591). Section 6591 states that any person who fails to pay any tax, except amounts of determinations made by the Board under Article 2 (commencing with Section 6481), or Article 3 (commencing with Section 6511), within the time required, shall pay a penalty. Section 6591 exempts unpaid determination amounts from the penalty otherwise applicable to unpaid taxes. If a taxpayer is eligible to be relieved of the penalty and/or interest pursuant to Revenue and Taxation Code sections 6592 and 6593, it is irrelevant that the penalty or interest was assessed by a determination.

TJC:sr