California Revenue and Taxation Code

§ 41174

RTC § 41174 Effective Jan 1, 2022Div. 2 · Part 20 · Ch. 7 · Art. 5

Statute text

(a)A taxpayer may file a claim with the department for reimbursement of bank charges and any other reasonable third-party check charge fees incurred by the taxpayer as the direct result of an erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action by the department. Bank and third-party charges include a financial institution’s or third party’s customary charge for complying with the levy or notice to withhold instructions and reasonable charges for overdrafts that are a direct consequence of the erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action. The charges are those paid by the taxpayer and not waived or reimbursed by the financial institution or third party. Each claimant applying for reimbursement shall file a claim with the department that shall be in a form as may be prescribed by the department. In order for the department to grant a claim, the department shall determine that both of the following conditions have been satisfied:

(1)The erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action was caused by department error.

(2)Prior to the erroneous levy or notice to withhold, erroneous processing action, or erroneous collection action, the taxpayer responded to all contacts by the department and provided the department with any requested information or documentation sufficient to establish the taxpayer’s position. This provision may be waived by the department for reasonable cause.

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Legislative history

Amended by Stats. 2021, Ch. 432, Sec. 150. (SB 824) Effective January 1, 2022.