Legal Question in Tax Law in California

Recovery of overpaid Calif. franchise (income) taxes

I failed to file and pay my California income tax on time in 2002 and 2003 for the tax years 2001 and 2002 due to health and financial problems. The Franchise Tax Board (over)estimated my income and tax liability, billed an excessive sum, liened property I was selling, and (over)collected from escrow.

I'm now back on my feet and would like to file correct returns for 2002, 2003 and 2004. Since I probably have a NOL for at least one of those years, with carry-forwards and carry-backs I certainly owe less than was collected and perhaps nothing at all.

So, my question is -- whether and how one applies or sues for refund of over-collected, involuntarily paid California taxes? Do I need a lawyer or an accountant?


Asked on 6/23/04, 8:37 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Recovery of overpaid Calif. franchise (income) taxes

The first thing you need to do is to file income tax returns for those years showing what you believe is the correct amount. They will generally refund the money, although they may want to audit your records, after receipt and review of your returns.

You will still be liable for some interest, but you may be able to get penalties waived due to the medical condition you had.

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Answered on 6/24/04, 11:31 am


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