Amnesty penalty? File a protective claim.

• Position: FTB News - Brief article

Several pending court cases challenge Revenue and Taxation Code Sec. 19777.5, which prevents the filing of refund claims to contest the amnesty penalty on other than computation errors. In general, to protect the statute of limitations on a claim, the taxpayer may file a request with the Franchise Tax Board to withhold any action on the claim while an audit determination, legislation or litigation, is still pending.

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Taxpayers who wish to file a protective claim based on recent court cases or pending legislation should send a letter to: Franchise...