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# 2008-7 : LLC fee refunds?

Thursday, April 03, 2008

The FTB will not appeal the recent Northwest Energetic Services, LLC decision regarding the constitutionality of the LLC fee (Northwest Energetic Services, LLC v. FTB (January 31, 2008) Cal.App. Case Nos. A114805/A115841/A115950). However, they have not stated how the refund process will work. We believe they will only issue refunds to LLCs that paid the LLC fee but did no business in California. So, LLCs with any California source income will have to wait for the outcome of the Ventas and Bakersfield Mall decisions.

We understand the FTB will issue a Notice soon, stating what needs to be filed to receive the refunds. Read the May 2008 issue of Spidell's California Taxletter® for full details.

If you have a calendar-year LLC that did no business in California in 2003, but paid a fee for that year, file a protective claim before April 15^th to prevent the statute from running. Click here for a sample protective claim letter.

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