Earlier editions: 2026-09
Division 2 — FINANCE AND TAXATION›Part III — TAXATION›Chapter 28 — SEVERANCE TAX LAW
Torrance Municipal Code Art. 5 Deficiency Determinations
Torrance Municipal Code · 2026-10 edition · updated 2026-10-05 · Torrance
Cite as: Torrance Municipal Code Article 5 · Text as of 2026-10-05
228.5.1 AMOUNT OF DEFICIENCY.
If the Director is not satisfied with a return filed or the amount of taxes paid by or on behalf of any person, he may compute and determine the amount required to be paid upon the basis of the facts contained in the return or upon the basis of any information that may come into his possession. One or more deficiency determinations may be made of the amount due for one or for more than one (1) quarter. When a business is discontinued a determination may be made at any time thereafter, within the periods specified in Sec. 228.5.7. whether the determination is issued prior to the date of the liability as otherwise specified in this part.
228.5.2 INTEREST.
The amount of the determination, exclusive of penalties, shall bear interest at the rate of one-half (1/2) of one (1) percent per month, or fraction thereof, from the 20th day after the close of the quarter for which the determination is made until the date of payment.
228.5.3 OVERPAYMENTS.
In making a determination the Director may off set overpayments for any month or months together with interest on the overpayments against underpayments for another month or months, against penalties, and against interest on underpayments.
228.5.4 NEGLIGENCE PENALTY.
If any part of the deficiency for which a deficiency determination is made is due to negligence or intentional disregard of this part or authorized rules and regulations, a penalty of ten (10) percent of the amount of the determination shall be added thereto.
228.5.5 FRAUD PENALTY.
If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade this part or authorized rules and regulations, a penalty of twenty-five (25) percent of the amount of the determination shall be added thereto.
228.5.6 NOTICE OF DETERMINATION.
The Director shall give to the person written notice of his determination. The notice may be served personally or by mail; if by mail, service shall be made pursuant to Section 1013 of the Code of Civil Procedure and shall be addressed to the person at his address as it appears in the records of the Director, but the service shall be deemed complete at the time of deposit of the notice in the mail without extension of time for any reason.
228.5.7 EXCEPTIONS.
Except in the case of fraud, intent to evade the tax, or failure to make a return, every notice of a deficiency determination shall be given within three (3) years after the date when the amount should have been reported.
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