California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 6.5 - Guidelines for Waiver of Penalty for Non-Use of Electronic Funds Transfer or for Non-Timely Payment of Taxes
Section 2330.3 - Waiver of Penalty for Failure to Pay Taxes by EFT

Universal Citation: 10 CA Code of Regs 2330.3

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) The penalty set forth above in Section 2330.1 may be waived if the taxpayer's failure to pay taxes by EFT is due to reasonable cause or circumstances beyond the taxpayer's control.

(b) In order for the penalty to be waived, the taxpayer seeking a waiver must file with the Insurance Commissioner a written request under penalty of perjury, stating the facts upon which a request for a waiver is based. Each request for a waiver shall be evaluated on its own merits.

(c) The request for a waiver shall be granted if the taxpayer fails to make payment by electronic funds transfer under any of the following circumstances:

(1) The death or serious illness of the taxpayer or death or serious illness of a member of the taxpayer's immediate family.

(2) The death or serious illness of the person who prepares the payment on behalf of the taxpayer.

(3) Natural disaster.

(4) Incorrect advice given to the taxpayer by an employee of the Commissioner.

(5) Involuntary bankruptcy.

(6) An attachment placed against the taxpayer's bank account without the taxpayer's knowledge.

(7) The taxpayer's books and records are impounded by court order or are in the hands of a federal or state agency and are unavailable for use by the taxpayer. However, these books and records must pertain to the same period of time as the tax return or somehow relate to the payment of the tax.

(8) If the State of California does not suffer any financial loss as a result of the payment method and the taxpayer was not previously notified of the electronic funds transfer method. The taxpayer shall work with the Department of Insurance to establish an electronic funds transfer method.

(9) Other situations that clearly demonstrate that the non-use of EFT is beyond the taxpayer's control.

1. New section filed 7-21-2008; operative 8-20-2008 (Register 2008, No. 30).

Note: Authority cited: Sections 1775.4(e), 1775.5(b), 1775.8(c)(2) and 12976.5(c)(2), Insurance Code: and Section 12602(c)(2), Revenue and Taxation Code. Reference: Sections 1775.4(e), 1775.5(b), 1775.8(c)(2) and 12976.5(c)(2), Insurance Code; and Section 12602, Revenue and Taxation Code.

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