18601-18606

REVENUE AND TAXATION CODE
SECTION 18601-18606




18601.  (a) Except as provided in subdivision (b) or (c), every
taxpayer subject to the tax imposed by Part 11 (commencing with
Section 23001) shall, on or before the 15th day of the third month
following the close of its taxable year, transmit to the Franchise
Tax Board a return in a form prescribed by it, specifying for the
taxable year, all the facts as it may by rule, or otherwise, require
in order to carry out this part. A tax return, disclosing net income
for any taxable year, filed pursuant to Chapter 2 (commencing with
Section 23101) or Chapter 3 (commencing with Section 23501) of Part
11 shall be deemed filed pursuant to the proper chapter of Part 11
for the same taxable period, if the chapter under which the return is
filed is determined erroneous.
   (b) In the case of cooperative associations described in Section
24404, returns shall be filed on or before the 15th day of the ninth
month following the close of its taxable year.
   (c) In the case of taxpayers required to file a return for a short
period under Section 24634, the due date for the short period return
shall be the same as the due date of the federal tax return that
includes the net income of the taxpayer for that short period, or the
due date specified in subdivision (a) if no federal return is
required to be filed that would include the net income for that short
period.
   (d) For taxable years beginning on or after January 1, 1997, each
"S corporation" required to file a return under subdivision (a) for
any taxable year shall, on or before the day on which the return for
the taxable year was filed, furnish each person who is a shareholder
at any time during the taxable year a copy of the information shown
on the return.
   (e) For taxable years beginning on or after January 1, 1997:
   (1) A shareholder of an "S corporation" shall, on the shareholder'
s return, treat a Subchapter S item in a manner that is consistent
with the treatment of the item on the corporate return.
   (2) (A) In the case of any Subchapter S item, paragraph (1) shall
not apply to that item if both of the following occur:
   (i) Either of the following occurs:
   (I) The corporation has filed a return, but the shareholder's
treatment of the item on the shareholder's return is, or may be,
inconsistent with the treatment of the item on the corporate return.
   (II) The corporation has not filed a return.
   (ii) The shareholder files with the Franchise Tax Board a
statement identifying the inconsistency.
   (B) A shareholder shall be treated as having complied with clause
(ii) of subparagraph (A) with respect to a Subchapter S item if the
shareholder does both of the following:
   (i) Demonstrates to the satisfaction of the Franchise Tax Board
that the treatment of the Subchapter S item on the shareholder's
return is consistent with the treatment of the item on the schedule
furnished to the shareholder by the corporation.
   (ii) Elects to have this paragraph apply with respect to that
item.
   (3) In any case described in subclause (I) of clause (i) of
subparagraph (A) of paragraph (2), and in which the shareholder does
not comply with clause (ii) of subparagraph (A) of paragraph (2), any
adjustment required to make the treatment of the items by the
shareholder consistent with the treatment of the items on the
corporate return shall be treated as arising out of a mathematical
error and assessed and collected under Section 19051.
   (4) For purposes of this subdivision, "Subchapter S item" means
any item of an "S corporation" to the extent provided by regulations
that, for purposes of Part 10 (commencing with Section 17001) or this
part, the item is more appropriately determined at the corporation
level than at the shareholder level.
   (5) The penalties imposed under Article 7 (commencing with Section
19131) of Chapter 4 shall apply in the case of a shareholder's
negligence in connection with, or disregard of, the requirements of
this section.



18602.  In the event that taxes, interest, and penalties have been
or shall be assessed against, paid by, or collected from a
corporation under Chapter 2 (commencing with Section 23101) of Part
11, which assessment, payment, or collection should have been made
under Chapter 3 (commencing with Section 23501) of Part 11, those
taxes, interest, and penalties shall be considered as having been
assessed, paid, or collected under Chapter 3 (commencing with Section
23501) of Part 11 as of the date or dates they were made.



18604.  (a) The Franchise Tax Board may grant a reasonable extension
of time for filing any return, declaration, statement, or other
document required by Part 11 (commencing with Section 23001), in the
manner and form as the Franchise Tax Board may determine. No
extension or extensions shall aggregate more than seven months from
the due date for filing the return.
   (b) An extension of time granted pursuant to this section is not
an extension of time for payment of tax required to be paid on or
before the due date of the return without regard to extension.
Underpayment of tax penalties shall be imposed as provided by law
without regard to any extension granted under this section.



18606.  (a) In cases where receivers, trustees in a case under Title
11 of the United States Code, or assignees are operating the
property or business of a corporation those receivers, trustees, or
assignees shall make returns for that corporation in the same manner
and form as that corporation is required to make a return.
   (b) Any tax due on the basis of returns made by receivers,
trustees, or assignees shall be collected in the same manner as if
collected from the corporation of whose business or property they
have custody and control.