Rev. & Tax. Code, § 45201

(a) If the department is dissatisfied with the report or return filed or the amount of fee paid to the state by any fee payer, or if no report or return has been filed or no payment or payments of the fees have been made to the state by a fee payer, the department may compute and determine the amount to be paid, based upon any information available to it. One or more additional determinations may be made of the amount of fee due for one, or for more than one, period. The amount of fee so determined shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date the amount of the fee, or any portion thereof, became due and payable until the date of payment. In making a determination, the department may offset overpayments for a period or periods against underpayments for another period or periods and against the interest and penalties on the underpayments.

(b) If any part of the deficiency for which a determination of an additional amount due is made is found to have been occasioned by negligence or intentional disregard of this part or regulations adopted by the department pursuant to this part, a penalty of 10 percent of the amount of that determination shall be added, plus interest as provided in subdivision (a).

(c) If any part of the deficiency for which a determination of an additional amount due is made is found to be occasioned by fraud or an intent to evade this part or authorized regulations, a penalty of 25 percent of the amount of the determination shall be added, plus interest as provided in subdivision (a).

(d) The department shall give to the fee payer written notice of its determination. The notice shall be served in one of the following manners:

(1) By placing the notice in a sealed envelope, with postage paid, addressed to the fee payer at their address as it appears in the records of the department. Service made pursuant to this paragraph shall be deemed complete at the time of the deposit of the notice in a United States Post Office, or a mailbox, sub-post office, substation, mail chute, or other facility regularly maintained or provided by the United States Postal Service, without extension of time for any reason.

(2) By personally delivering the notice to the person to be served. Service made pursuant to this paragraph shall be deemed complete at the time of delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.

(3) (A) By delivering the notice electronically via secure transmission when either of the following applies:

(i) The feepayer requests the notice of determination to be sent electronically via secure transmission.

(ii) The department has evidence that the feepayer no longer receives mail at the address of record and has previously provided an address for electronic mail.

(B) Service provided pursuant to subparagraph (A) shall be deemed complete at the time the department electronically transmits the notice via the feepayer’s secure web portal, without extension of time for any reason.