No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this state or against any officer of this state to prevent or enjoin the assessment or collection of any tax under this part; provided, however, that any individual after protesting a notice or notices of deficiency assessment issued because of his or her alleged residence in this state and after appealing from the action of the Franchise Tax Board to the State Board of Equalization, may within 60
days after the action of the State Board of Equalization becomes final commence an action, on the grounds set forth in his or her protest, in the Superior Court of the County of Sacramento, in the County of Los Angeles or in the City and County of San Francisco against the Franchise Tax Board to determine the fact of his or her residence in this state during the year or years set forth in the notice or notices of deficiency assessment. No tax based solely upon the residence of such an individual shall be collected from that individual until 60 days after the action of the State Board of Equalization becomes final and, if he or she commences an action pursuant to this section, during the pendency of the action, other than by way of or under the jeopardy assessment provisions of this part.
Overpayments and RefundsSuit for Refund
Section § 19381
This law states that you cannot stop or interfere with tax assessments or collections using a court order. However, if you’ve contested a tax decision by the Franchise Tax Board because they said you lived in California and you've taken it to the State Board of Equalization, you have 60 days after the final decision to file a lawsuit. You can do this in Sacramento, Los Angeles, or San Francisco's Superior Court to challenge your residency status during the questioned tax years. The state can’t collect tax based on residency alone until 60 days after the final decision, and if you sue, they can’t collect while the case is ongoing, unless they’ve applied emergency tax assessment rules.
tax assessment challenge resident tax dispute Franchise Tax Board appeal
Section § 19382
This law allows taxpayers to sue the Franchise Tax Board to get back tax payments they believe were wrongly calculated or assessed. However, they can only do this after their refund claim has been denied and they've already paid the tax. The lawsuit must be based on the reasons they listed in the refund claim.
Except as provided in Section 19385, after payment of the tax and denial by the Franchise Tax Board of a claim for refund, any taxpayer claiming that the tax computed and assessed is void in whole or in part may bring an action, upon the grounds set forth in that claim for refund, against the Franchise Tax Board for the recovery of the whole or any part of the amount paid.
taxpayer rights tax refund claim Franchise Tax Board
Section § 19383
This law states that if you've overpaid on a tax, any extra amount left after covering your tax liability is treated as if you paid that amount to settle your tax debt at the time the credit for the overpayment is given. This is important for any refund lawsuits related to the tax liability that was paid off.
The credit of an overpayment of any tax in satisfaction of any tax liability shall, for the purpose of any suit for refund of the tax liability so satisfied, be deemed to be a payment in respect of the tax liability at the time the credit is allowed.
tax overpayment credit tax liability satisfaction tax refund lawsuits
Section § 19384
This law section outlines the time limits for taking legal action related to tax returns and refunds. You have to file within four years from when your tax return was originally due, or one year from the date you paid the tax. Alternatively, you can file within 90 days after either receiving a notice from the Franchise Tax Board about a refund claim or a decision from the State Board of Equalization regarding an appeal about a refund, whichever happens later.
The action provided by Section 19382 shall be filed within four years from the last date prescribed for filing the return or within one year from the date the tax was paid, or within 90 days after (a) notice of action by the Franchise Tax Board upon any claim for refund, or (b) the determination (including the issuance of a decision, opinion, or dismissal) by the State Board of Equalization on an appeal from the action of the Franchise Tax Board on a claim for refund becomes final pursuant to Section 19334, whichever period expires the
later.
tax return deadline refund claim Franchise Tax Board
Section § 19385
If the Franchise Tax Board (FTB) takes more than six months to respond to a taxpayer's refund claim, the taxpayer can assume the claim is denied and can file a lawsuit against the FTB to recover the overpaid amount. In bankruptcy cases under Title 11, the response period is reduced to 120 days.
If the Franchise Tax Board fails to mail notice of action on any refund claim within six months after the claim was filed, the taxpayer may, prior to mailing of notice of action on the refund claim, consider the claim disallowed and bring an action against the Franchise Tax Board on the grounds set forth in the claim for the recovery of the whole or any part of the amount claimed as an overpayment. For substitution of the 120-day period for the six-month period contained in this section in a Title 11 case, see Section 505(a)(2) of
Title 11 of the United States Code.
Franchise Tax Board refund claim taxpayer lawsuit
Section § 19387
If you start a legal action against the Franchise Tax Board (FTB), you must serve them a copy of the complaint and summons.
Additionally, you need to provide a second copy to the FTB, but this second copy isn't required for the court to have jurisdiction over the case.
Whenever an action is commenced against the Franchise Tax Board under this article, a copy of the complaint and the summons shall be served upon the Franchise Tax Board or the executive officer. A second copy of the complaint and the summons shall be furnished to the Franchise Tax Board, but this requirement is not jurisdictional.
Franchise Tax Board serve complaint serve summons
Section § 19388
If you want to take legal action against the Franchise Tax Board, your case must be started and held in a city where the Attorney General has an office.
Any action against the Franchise Tax Board under this article shall be commenced and tried in any city or city and county in which the Attorney General maintains an office.
Franchise Tax Board legal action location Attorney General office
Section § 19389
This law mandates that either the Attorney General or the legal team for California's Franchise Tax Board is responsible for defending any action related to this section.
The Attorney General or the counsel for the Franchise Tax Board of California shall defend the action.
Attorney General Franchise Tax Board legal defense
Section § 19390
If you don't start a legal action within the time limit set in this law, you won't be able to recover any taxes.
Failure to begin an action within the time specified in this article shall be a bar against the recovery of taxes.
tax recovery deadline time limit
Section § 19391
If a court decides that you've overpaid on something, you are entitled to receive interest on that overpayment. This interest is calculated at a specific rate, which is set according to a different section of the law. The interest is added to your overpayment starting from when you made the payment until just before you receive a refund; the Franchise Tax Board decides the exact date, but it can't be more than 30 days before you get your refund.
In any judgment of any court rendered for any overpayment, interest shall be allowed at the adjusted annual rate established pursuant to Section 19521 upon the amount of the overpayment, from the date of the payment or collection thereof to the date of allowance of credit on account of the judgment or to a date preceding the date of the refund warrant by not more than 30 days, the date to be determined by the Franchise Tax Board.
overpayment judgment interest on overpayment adjusted annual rate
Section § 19392
If a court decides against the Franchise Tax Board, any owed amount will first go towards covering the taxpayer's existing taxes and interest. Whatever is left will be refunded. This refund can go to the taxpayer, their estate or trust, or, for businesses, to their successors, or stockholders if the business has closed.
If judgment is rendered against the Franchise Tax Board, the amount thereof shall first be credited against any taxes and interest due from the taxpayer and the remainder refunded to the taxpayer or his or her trust or estate, or in the case of a corporation, its successor through reorganization, merger, or consolidation, or its stockholders upon dissolution, by the Treasurer on warrants drawn by the Controller.
Franchise Tax Board judgment taxpayer refund tax credit
Section § 19393
This law says that if any tax deduction, credit, or exclusion meant for state income tax is found to be unfairly favorable to certain taxpayers — like against national banks — or invalid under state or federal laws, the Franchise Tax Board will recalculate the taxes for that year without these benefits. However, there are certain exceptions. If specific sections were invalidated due to recent amendments, this rule won't apply to those taxpayers.
(a)CA Revenue & Taxation Code § 19393(a) Except as provided in subdivision (b), for the purposes of the tax imposed under Chapter 2 (commencing with Section 23101) of Part 11, if any deduction, credit, or exclusion provided for in Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) is finally adjudged discriminatory against a national banking association contrary to Section 548 of Title 12 of the United States Code, or is for any reason finally adjudged invalid or discriminatory under the California Constitution, or the laws or the Constitution of the United States, the tax of the favored taxpayer shall be recomputed by the Franchise Tax Board for the taxable year in question, as of the time of allowance of the deduction, credit, or exclusion, by disallowing the deduction, credit, or exclusion, and any difference between the amount of the tax as recomputed and the amount of the tax as originally computed shall be subject to the provisions hereof relating to original computations.
(b)CA Revenue & Taxation Code § 19393(b) Subdivision (a) shall not apply to a taxpayer for the invalidation of any provision of Section 17053.98, 17053.99, or 23698 amended or added by the act that added
this subdivision.
discriminatory tax benefits national banking association Franchise Tax Board recalculation
Section § 19394
If it's determined that a fee under Section 17942 is discriminatory or unfair according to California or U.S. law, taxpayers who believe they've been unfairly treated can have their fee recalculated. This only applies if they filed a timely refund claim. The recalculation will fix any unequal treatment, but only as much as necessary to address this specific unfairness. The original fee calculations still apply unless otherwise corrected by another law section, like 19393.
If the fee provided under Section 17942 is finally adjudged to be discriminatory or unfairly apportioned under the California Constitution, or the laws or the Constitution of the United States, the fee of a disfavored taxpayer that files, or has filed, a timely claim for refund within the period allowed by this part asserting discrimination or unfair apportionment shall be recomputed by the Franchise Tax Board for the taxable year in question, as of the time of allowance of the recomputation, only to the extent necessary to remedy the discrimination or unfair
apportionment that is not otherwise relieved by Section 19393 and the amount of the fee, as originally computed, shall be subject to the provisions hereof relating to original computations.
discriminatory fee unfair apportionment fee recomputation
