A bill sponsored by the Board of Equalization (BOE) to streamline and simplify refunds on tax liabilities has been signed by the governor and will become law Jan. 1, 2017.
AB 1856 helps taxpayers making installment payments by only requiring they file one claim for refund, rather than one for each installment payment they have made on a single liability.
“Running a business is challenging enough without having to keep track of multiple layers of paperwork,” said BOE and Legislative Committee Chairwoman Fiona Ma. “It is my goal and that of all our members to simplify and streamline our taxpayers’ dealings with government agencies so they can spend more time on achieving success in their business ventures.”
In several cases, BOE taxpayers have been barred by the statute of limitations from recovering all of the installment payments they made to the BOE, even though their tax debt was cancelled or reduced to an amount less than the total payments received, because they made payments after the original claim had been filed, but did not file additional claims to cover the later payments. The new law will allow taxpayers making installment payments to file a single claim for refund before the entire liability is paid in full.
The five-member California State Board of Equalization (BOE) is a publicly elected tax board. The BOE collects $60.5 billion annually in taxes and fees, supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes.