What percentage penalty is imposed on taxpayers who fail to provide requested information?

The percentage penalty imposed on taxpayers who fail to provide requested information is indeed 25%. This penalty is outlined in California tax law, which encourages compliance by imposing financial consequences for noncompliance. The law is designed to incentivize taxpayers to respond to information requests from tax authorities promptly and completely.

When taxpayers don't provide the necessary information, it creates difficulties for tax authorities in assessing taxes accurately and fairly, thus the penalty serves both as a deterrent against noncompliance and as a means to ensure that tax collection processes remain effective. The specificity of this penalty—25%—highlights the importance of adhering to requests for information in order to avoid incurring additional financial burdens.