CA AB1777

Requires the Franchise Tax Board to abate failure-to-file or failure-to-pay timeliness penalties upon request by qualified taxpayers who meet specified conditions.

Defines qualified taxpayers as corporations with gross receipts under $1,000,000 in the taxable year or individual taxpayers.

Penalties are abated if the taxpayer has paid or arranged to pay all current taxes and penalties, has filed all required returns, and has not had a timeliness penalty imposed in the current year or prior four years.

Makes a continuous appropriation from the General Fund to the Franchise Tax Board to reimburse qualified taxpayers who paid penalties prior to the bill's effective date.

Declares that penalty abatement serves a public purpose and does not constitute an unconstitutional gift of public funds.