Amended by Stats. 2021, Ch. 432, Sec. 147. (SB 824) Effective January 1, 2022.
(a)Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the department if all of the following conditions are met:
(1)The taxpayer files a claim for the fee and expenses with the department within one year of the date the decision of the
department becomes final.
(2)The department, in its sole discretion, finds that the action taken by the department staff was unreasonable.
(3)The department decides that the taxpayer be awarded a specific amount of fees and expenses related to the hearing, in an amount determined by the department in its sole discretion.
(b)To determine whether the department staff has been unreasonable, the department shall consider whether the department staff has established that its position was substantially justified.
(c)The amount of reimbursed fees and expenses shall be limited to the following:
(1)Fees and expenses incurred after the date of the notice of determination, jeopardy determination, or a claim for refund.
(2)If the department finds that the staff was unreasonable with respect to certain issues but reasonable with respect to other issues, the amount of reimbursed fees and expenses shall be limited to those that relate to the issues where the staff was unreasonable.
(d)Any proposed award by the department pursuant to subdivision (a) shall be available as a public record for at least 10 days prior to the effective date of the award.
(e)The amendments to this section by the act adding this subdivision shall be operative for claims filed on or after January 1,
2000.
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