(a) If the required return is not filed on time the delinquency penalty is mandatory unless there is a showing of "reasonable cause" for the delay.(b) "Reasonable cause" means the exercise of ordinary business care and prudence. The following specific causes for failure to file a return within the time prescribed by law, if clearly established by the taxpayer, will be accepted as reasonable. (1) Where the return was mailed on time, properly addressed and with sufficient postage to reach the Controller's Office in the normal course of United States mail service within the legal period.(2) Where the delay or failure to file was due to erroneous information given the taxpayer by an employee of the Controller.(3) Where the delay or failure to file was caused by death or serious illness of the taxpayer or serious illness in the immediate family.(4) Where the delay was caused by the unavoidable absence of the taxpayer.(5) If a similar penalty for failure to timely file the federal estate tax return is waived, the waiver shall be deemed to constitute reasonable cause. On the other hand, if a similar federal penalty is assessed and not waived, it shall be presumed that reasonable cause does not exist. A "similar" penalty is one imposed when the return was filed late with California for essentially the same reasons and at the same time. For example, if a federal estate tax return was filed late in January 1994 and IRS granted a penalty waiver but no return was filed with California until November 1994, the federal waiver will not be recognized.(c) Generally, the failure to timely file is not excused by reliance on an agent and such reliance is not reasonable cause for late filingCal. Code Regs. Tit. 2, § 1138.40
1. New article 3.5 (sections 1138.40-1138.42) and section filed 4-29-96; operative 5-29-96 (Register 96, No. 18) Note: Authority cited: Section 14103, Revenue and Taxation Code. Reference: Section 13510, Revenue and Taxation Code; United States v. Boyle (1985) 469 US 241).
1. New article 3.5 (sections 1138.40-1138.42) and section filed 4-29-96; operative 5-29-96 (Register 96, No. 18)