Amnesty penalty? File a protective claim.

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.