My client filed his 2019 returns electronically in early March, requesting that his CA overpayment be applied to 2020. Then with the pandemic, he realized his income would be substantially lower and would prefer that the 2019 be refunded. We filed an updated 2019 Form 540 in early June 2020, via paper, and wrote Superseded Return in red on the top of the return and requested that the overpayment be refunded. No correspondence or refund has been rec’d as of yet. At client’s request, I called FTB and was told that the revised return was rec’d on 6/15/20 but that no refund would be issued based on the Superseded Return. In order to request a refund, the taxpayer has to write a letter requesting a cancellation of the transfer request on the originally filed return. Without that, the FTB rep stated that no refund would be issued.
Is any one else having this issue? I thought refund would be issued on a Superseded Return filed before original due date.
The FTB is correct. have the client make the written request but don’t be surprised if they deny it. Make sure that he claims extreme financial duress if the funds are not returned, and claim due to COVID. This seems to be the only thing that the FTB is responding to positively.