Section 5266 - Appeals Attorney Recommendations; Requests for Reconsideration; Requests for Board Hearings; Supplemental Decision and Recommendation(a) The Appeals Attorney may make the following recommendations in the Decision and Recommendation: (1) Deny the appeal in its entirety.(2) Grant the appeal in its entirety.(3) Grant the appeal in part.(4) That the appropriate Department perform a reaudit as specified in the Decision and Recommendation.(b) If the Decision and Recommendation recommends denial of the appeal in whole or in part or a reaudit, the taxpayer may submit, within 30 days after the issuance of the Decision and Recommendation or the issuance of the letter from the Appeals Attorney explaining the results of the reaudit: (1) A written request for reconsideration to the Appeals Attorney. The request must identify the specific issue or issues for which reconsideration is sought, and must explain the reasons the taxpayer disagrees with the Decision and Recommendation, the results of the reaudit, or both; or(2) A written request for a Board hearing to the Board Proceedings Division if the taxpayer has not previously done so. (A) If a Board hearing has been requested, but the Appeals Attorney believes the taxpayer accepts the recommendation of the Appeals Attorney or it is unclear whether the taxpayer disagrees with any portion of its Decision and Recommendation, the Appeals Attorney may ask the taxpayer to confirm the request for Board hearing.(B) If a Board hearing is requested and, if applicable, confirmed, the Board Proceedings Division will schedule a Board hearing, unless that request is waived. However, a Board hearing will not be provided if a request for a discretionary Board hearing is denied.(c) If the Decision and Recommendation recommends that the appeal be granted in whole or in part or a reaudit:(1) The Department and any state agency represented at the appeals conference may submit a written request for reconsideration to the Appeals Attorney within 30 days after the issuance of the Decision and Recommendation or letter from the Appeals Attorney explaining the results of the reaudit. The request must identify the specific issue or issues for which reconsideration is sought, and must explain the reasons the Department or other state agency disagrees with the Decision and Recommendation, the results of the reaudit, or both.(2) Any state agency represented at the appeals conference may submit a written request for a Board hearing to the Board Proceedings Division, within 30 days after the issuance of the Decision and Recommendation or letter from the Appeals Attorney explaining the results of the reaudit. If a Board hearing is requested, the Board Proceedings Division will schedule a Board hearing, unless that request is waived. However, a Board hearing will not be provided if a request for a discretionary Board hearing is denied.(d) If a party submits a timely request for reconsideration, as provided in subdivisions (b) and (c)(1) of this section, the Appeals Attorney will prepare a Supplemental Decision and Recommendation to respond to the request for reconsideration and address any other matter the Appeals Attorney deems warranted. The Appeals Attorney may also issue a Supplemental Decision and Recommendation when it deems it appropriate to do so, including where no party has filed a timely request for reconsideration. For example, while the Appeals Attorney is not required to do so, it may issue a Supplemental Decision and Recommendation to respond to a request for reconsideration submitted in response to a Supplemental Decision and Recommendation or otherwise filed more than 30 days after the issuance of the Decision and Recommendation or the letter explaining the results of a reaudit.(1) When the Appeals Attorney receives a request for reconsideration, it will send a letter to acknowledge receipt of the request and, if the request had not been submitted within the period specified in subdivisions (b) and (c)(1) of this section, to advise the parties whether the Appeals Attorney will issue a Supplemental Decision and Recommendation in response to the request. Where the Appeals Attorney will issue a Supplemental Decision and Recommendation, the letter will offer the other party the opportunity to respond to the request for reconsideration. Where the Appeals Attorney decides to issue a Supplemental Decision and Recommendation where no party has submitted a request for reconsideration, it will promptly send a letter to the parties to notify them of the forthcoming Supplemental Decision and Recommendation.(2) The Appeals Attorney may request additional written argument, analysis, or documentation from any party if it determines that the information may be relevant to the preparation of a Supplemental Decision and Recommendation, and when it does so, will determine how long to provide the party to respond and will so inform the party. The Appeals Attorney will also determine whether a response should be submitted by the other party, and if so will advise that party when the response is due.(3) The Appeals Attorney must issue a Supplemental Decision and Recommendation within 90 days after the submission of any additional documents requested under paragraph (2), a copy of which will be sent to each party. The Chief Counsel may allow additional time beyond the 90 days to prepare a Supplemental Decision and Recommendation; however, both the request for additional time and the granting of additional time must be in writing and copies provided to each party to the appeal.(4) A Supplemental Decision and Recommendation must satisfy all the requirements of section 5265, subdivision (c), as relates to the issues addressed in the Supplemental Decision and Recommendation, and may make the recommendations listed in subdivision (a) above.(5) The provisions for requesting a Board hearing following the issuance of a Decision and Recommendation set forth in subdivisions (b) and (c)(2) of this section are applicable to the issuance of a Supplemental Decision and Recommendation.Cal. Code Regs. Tit. 18, § 5266
1. New section filed 1-7-2008; operative 2-6-2008 (Register 2008, No. 2).
2. Amendment of subsection (f) and new subsection (g) filed 1-20-2010; operative 2-19-2010 (Register 2010, No. 4).
3. Amendment of section heading and section filed 2-25-2014; operative 4-1-2014 (Register 2014, No. 9).
4. Amendment of NOTE filed 3-19-2018 as an emergency; operative 3-19-2018 (Register 2018, No. 12). Pursuant to Government Code section 15570.40, this action is a deemed emergency and exempt from OAL review. A Certificate of Compliance must be transmitted to OAL by 9-17-2018 or emergency language will be repealed by operation of law on the following day.
5. Amendment of NOTE refiled 9-17-2018 as an emergency; operative 9-17-2018 (Register 2018, No. 38). Pursuant to Government Code section 15570.40, this action is a deemed emergency and exempt from OAL review. A Certificate of Compliance must be transmitted to OAL by 12-17-2018 or emergency language will be repealed by operation of law on the following day.
6. Amendment of NOTE refiled 12-17-2018 as an emergency; operative 12-17-2018 (Register 2018, No. 51). Pursuant to Government Code section 15570.40, this action is a deemed emergency and exempt from OAL review. A Certificate of Compliance must be transmitted to OAL by 3-18-2019 or emergency language will be repealed by operation of law on the following day.
7. Reinstatement of section as it existed prior to 3-19-2018 emergency amendment by operation of Government Code section 11346.1(f) (Register 2019, No. 12).
8. Amendment of NOTE filed 3-19-2019; operative 3-19-2019. Submitted to OAL for filing and printing only. Exempt from the APA pursuant to Government Code section 15570.40(b) (Register 2019, No. 12).
9. Change without regulatory effect amending section heading and subsections (a), (b)-(b)(1), (b)(2)(A) and (c)(1)-(d)(3) filed 7-30-2020 pursuant to section 100, title 1, California Code of Regulations (Register 2020, No. 31). Note: Authority cited: Section 15606, Government Code; and Sections 13170 and 32451, Revenue and Taxation Code. Reference: Sections 12429, 12636, 12637, 12951, 12977, 12978, 12981, 32255, 32256, 32256.5, 32257, 32302, 32312, 32313, 32401, 32402, 32402.1, 32404, 32407 and 32440, Revenue and Taxation Code.
1. New section filed 1-7-2008; operative 2-6-2008 (Register 2008, No. 2).
2. Amendment of subsection (f) and new subsection (g) filed 1-20-2010; operative 2-19-2010 (Register 2010, No. 4).
3. Amendment of section heading and section filed 2-25-2014; operative 4-1-2014 (Register 2014, No. 9).
4. Amendment of Note filed 3-19-2018 as an emergency; operative 3-19-2018 (Register 2018, No. 12). Pursuant to Government Code section 15570.40, this action is a deemed emergency and exempt from OAL review. A Certificate of Compliance must be transmitted to OAL by 9/17/2018 or emergency language will be repealed by operation of law on the following day.
5. Amendment of Note refiled 9-17-2018 as an emergency; operative 9/17/2018 (Register 2018, No. 38). Pursuant to Government Code section 15570.40, this action is a deemed emergency and exempt from OAL review. A Certificate of Compliance must be transmitted to OAL by 12-17-2018 or emergency language will be repealed by operation of law on the following day.
6. Amendment of Note refiled 12-17-2018 as an emergency; operative 12-17-2018 (Register 2018, No. 51). Pursuant to Government Code section 15570.40, this action is a deemed emergency and exempt from OAL review. A Certificate of Compliance must be transmitted to OAL by 3-18-2019 or emergency language will be repealed by operation of law on the following day.
7. Reinstatement of section as it existed prior to 3-19-2018 emergency amendment by operation of Government Code section 11346.1(f) (Register 2019, No. 12).
8. Amendment of Note filed 3-19-2019; operative 3/19/2019. Submitted to OAL for filing and printing only. Exempt from the APA pursuant to Government Code section 15570.40(b) (Register 2019, No. 12).
9. Change without regulatory effect amending section heading and subsections (a), (b)-(b)(1), (b)(2)(A) and (c)(1)-(d)(3) filed 7-30-2020 pursuant to section 100, title 1, California Code of Regulations (Register 2020, No. 31).