CA SBX66

Repeals Section 19138 of the Revenue and Taxation Code, which imposed a 20% penalty on corporations with tax understatements exceeding $1,000,000 for any taxable year

Eliminates the penalty provision that applied to taxpayers subject to Part 11 of the Corporation Tax Law (commencing with Section 23001)

Removes restrictions on refunds or credits for penalty amounts, which previously could only be allowed if the Franchise Tax Board improperly computed the penalty

Eliminates exemptions from the penalty for tax understatements attributable to changes in law or reasonable reliance on written Franchise Tax Board advice