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 Tax
Board; PO Box 942867; Sacramento, CA 94267-2222 with the following
information:
* Tax year;
* Amount of amnesty penalty paid; and,
* A statement requesting the correspondence to be held pending the
outcome of pending legislation or litigation.
Find more information at www.ftb.ca.gov.
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