LLC fee refunds based on Northwest decision.

• Position: Northwest Energetic Services desicion on limited liability company tax refunds - Brief article

In a recent decision on Northwest Energetic Services (NES), LLC u. Franchise Tax Board, the California Court of Appeal, First Appellate District, held that assessing an LLC fee to an entity that had no income attributable to business conducted in California was unconstitutional as applied to NES, and the fee should be refunded.

Because, the NES decision about the LLC fee is now final, it is possible to take action on claims for refund filed by LLCs that had no income attributable to activities in California. Some claims don't provide enough information, however, to determine whether the LLC that filed the claim has the same facts as those involved in NES.

If you file, or have filed claims for your clients based on the facts in NES, you should provide the following information:

* The LLC's...