Did section 6563 prevent California from issuing a new determination for a tax period that remained open after an earlier determination and hearing?

Plain-English summary

Revenue and Taxation Code section 6563 did not bar California from issuing a new determination for a reporting period that remained open under the otherwise applicable statute of limitations. That remained true even if the Board had already issued an earlier determination for the same period and held a hearing on it.

The memorandum described section 6563 as expanding the limitations period to the extent the Board had already acted within time, allowing an increase even when the ordinary period might otherwise have expired. It was not itself a rule shortening an otherwise open limitations period.

The source did not supply the facts or dates needed to decide whether a particular reporting period was actually open.

Common questions

Did an earlier determination and hearing prevent a new determination for the same period?

No, if that period was otherwise still open.

Was section 6563 treated as a limitation on the ordinary assessment period?

No. The memorandum treated it as expanding the Board's authority in the circumstances it covered.

Did the memorandum decide whether a particular taxpayer's period was open?

No.

Citations and references

• California Revenue and Taxation Code section 6563 — interpreted as permitting an increase and not shortening an otherwise open limitations period

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/465-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/465-1548.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

Mr. Glenn A. Bystrom

From:

Gary J. Jugum

Subject:

Section 6563

465.1548

Date:

October 25, 1991

This is in response to your memorandum of September 24, 1991. Revenue and Taxation Code section 6563 does not bar the issuance of a new determination for a period otherwise open under the statutes of limitations, even though an earlier determination may have been issued for the same period and a hearing before the Board may have been held with respect to the earlier determination. The purpose of section 6563 is to permit an increase in a determination, notwithstanding the fact that the statute of limitations may otherwise have run. It is not a limitation on the limitations period. Effectively, it expands the limitations period to the extent that the Board has otherwise acted within the limitations period.

GJJ:sr

cc:

Mr. Robert Nunes
Mr. Donald J. Hennessy