Claim for refund | FTB.ca.gov (2024)

Overview

A claim for refund is a request for reimbursem*nt of amounts previously paid. Generally, if you have paid your balance in full you will file a formal claim. If you have not paid your balance in full, you will file an informal claim.

We accept claims for refunds through:

• Amended returns
• Letters
• Reasonable cause forms

To be valid, your claim must be:

• In writing
• Signed by you or your authorized representative
• Include the specific reason for your claim
• Filed within the statute of limitations (SOL)

Businesses

If your business is suspended or forfeited, we will disallow your claim for refund. (R&TC 23301 and R&TC 23304.1(d))

Statute of limitations

SOL is a time limit imposed by law on the right of taxpayers to file a claim for refund.

Generally, you must file your claim for refund by the later of:

• 1 year from the date of overpayment
• 4 years after the original return due date.
  • If you filed before the due date, you have 4 years from the original return due date to file a claim.
  • If you filed after the extension, the return is late. You have 4 years from the original return due date to file a claim.
  • If you made payments and never filed a tax return, you have 4 years from the original return due date to file a claim.
• 4 years after the date of a timely filed return, if filed within the extension period.

You have federal adjustments

Generally, you have 2 years from the date the IRS makes a change to file your claim.

What to include

For all claims, include:

• Name
• Social security number or identification number.
• Address
• Phone number
• Tax year
• Reason for filing a claim
• Any supporting documentation

Types of claims

Formal claim

If you’ve paid your balance in full, you can file a formal claim for refund to:

• Reduce the amount of tax you paid.
• Disagree with an assessment of:
  • Tax
  • Penalties
  • Interest

Informal claim

You may file an informal claim for refund even though you have not paid the full amount of:

• Tax
• Penalties
• Interest

An informal claim will:

• Delay the expiration of the statute of limitations until full payment is made
• Protect your right to appeal
• Protect your right to file suit in court

We’ll process the informal claim as a formal claim when the full amount due has been paid.

Before you mail your claim:

• Individuals: Check the informal claim box on your amended return
• Businesses: Write “informal claim” across the top of your amended return

Visit FTB Notice 2003-5 for more information.

Mail

Individuals, estates and trusts or group nonresident returns
Franchise Tax Board
PO Box 942840
Sacramento CA 94240-0040

Businesses (includes exempt organizations and non-profits)
Franchise Tax Board
PO Box 942857
Sacramento CA 94257-4040

Reasonable cause

We may cancel certain penalties if reasonable cause exists. Reasonable causemeans that the act occurred despite the exercise of ordinary business care and prudence.

Provide us a written statement with supporting documents listing the facts to support your claim.

Use one of the following forms to file a reasonable cause claim for refund:

• Reasonable Cause - Individual and Fiduciary Claim for Refund (FTB 2917)
• Reasonable Cause - Business Entity Claim for Refund (FTB 2924)

Mail

Individuals, estates and trusts or group nonresident returns
Franchise Tax Board
PO Box 942840
Sacramento CA 94240-0040

Businesses (includes exempt organizations and non-profits)
Franchise Tax Board
PO Box 942857
Sacramento CA 94257-4040

Online

Log in to MyFTB

• Upload your Reasonable Cause form
• Write your letter through a MyFTB message

Protective claim

You can file a claim for refund for a tax year where unresolved tax matters are pending. This is a protective claim and is done to preserve your statute of limitations when you’re expecting a refund.

Unresolved tax matters can include:

• An appeal to the Office of Tax Appeals
• A court case
• An audit by the IRS
• An audit by another state taxing agency
• Other litigation

Individuals: Check the protective claim box on your amended return.

Businesses: Write “protective claim” across the top of your amended return.

You may also send us a letter. Write “protective claim” across the top.

Include the following:

• Specific information about the pending case
• Specific information about the issue involved
• Amount of the claim. Protective claims are usually for $1 or more

Mail your claim

Other correspondence

Amended returns are listed as other correspondence and general other correspondence (if you’re writing a letter) on our mailing website:

Mail

Individuals, estates and trusts or group nonresident returns
Franchise Tax Board
PO Box 942840
Sacramento CA 94240-0040

Businesses (includes exempt organizations and non-profits)
Franchise Tax Board
PO Box 942857
Sacramento CA 94257-4040

Amended without payment

Amended returns with refund, zero balance or balance due without payment:

Mail

Individuals, estates and trusts or group nonresident returns
Franchise Tax Board
PO Box 942840
Sacramento CA 94240-0001

Businesses (includes exempt organizations and non-profits)
Franchise Tax Board
PO Box 942857
Sacramento CA 94257-0500

If you already filed a claim

If you already filed a formal claim for refund, you may receive a letter from us approving or denying your claim. If you have not received a letter, and it has been more than 6 months, your claim for refund is deemed denied.

If your claim for refund is denied, you can now file:

• An appeal with the Office of Tax Appeals
• A suit in superior court

Visit Personal Income Tax Denial of Claim for a Refund Information (FTB 1084) for more information.

Visit Business Entities – Denial of a Claim for Refund Information (FTB 1087) for more information.

One-Time Penalty Abatement

FTB was granted the authority to provide taxpayers a one-time abatement of timeliness penalties. (Assembly Bill 194 added authority under Section 19132.5). This includes the failure-to-file penalty. (RTC 19131), and a failure-to-pay penalty (RTC 19132). The One-time abatement is:

• A once-in-a-lifetime abatement
• It is only available to individuals subject to Personal Income Tax Law
  • Not available to trusts, estates or business entities
• It is applicable to requests for abatement made for taxable years beginning on or after January 1, 2022
• Requests will be accepted starting November 16, 2023

To qualify, you must:

• Be compliant with tax return filing requirements
• Have not previously been granted abatement under this section or has not been previously required to file a California tax return
• Have paid or be current on an arrangement to pay all other tax, penalties, fees, and interest due other than the timeliness penalty you are seeking to abate
• Complete Form 2918, One-Time Penalty Abatement - Individual to request a One-time penalty abatement