Taxpayer Rights under the UI Code

California’s Unemployment Insurance Code, Division 1, Part 1, Chapter 4, Article 11.5, provides taxpayer’s rights. Section 1231 requires the department to develop and implement a taxpayer education and information program directed at, but not limited to, taxpayer or industry groups and department audit and compliance staff.

In addition, the program should identify forms, procedures, regulations, or laws that are confusing and lead to taxpayer errors. And, they should take appropriate action, including recommending remedial legislation to change those items identified. In addition, the education and information program are required to have five specified contents.

Section 1233 provides that, if an employing unit’s failure to make a timely return or payment is due to the person’s reasonable reliance on written advice from the department, the employing unit may be relieved of the taxes assessed, or any interest, additions to tax, or penalties added based upon specified provisions. In addition, relief must be granted if all the specified conditions are satisfied. And, any person seeking relief is required to file with the department specified information.

Section 1236 specifies that any civil employment tax matter dispute may be settled under the specified conditions. The director may approve a settlement of a civil employment tax matter in dispute involving a reduction of tax or penalties, or both, that does not exceed the specified amount. Also, each settlement must be submitted to the Attorney General, and specified procedures must be followed. Some of this information will become a public record.

Section 1237 prohibits any business entity from discharging or otherwise discriminate against any person because he or she has sought information from the department concerning his or her rights under this code or the Labor Code, cooperated with any investigation undertaken by the department, or has testified or is about to testify in any proceeding brought pursuant to this code or the Labor Code. Any employee who believes that his or her rights have been violated may file a complaint with the Labor Commissioner.