2005 California Tax Amnesty: Amnesty Protest and Appeal Procedure - June 1, 2005
If I file and complete amnesty for a tax year, and the FTB later audits that year and proposes an additional assessment, can I protest and appeal that additional assessment?
Yes. RTC section 19733(d) provides that FTB may propose a deficiency after amnesty, but that new proposed deficiency assessment shall not invalidate any of the penalty waivers accomplished under amnesty. That new assessment will be subject to the post-amnesty penalty of 19777.5(a)(2) if it is sustained, and that taxpayer may file a protest and/or appeal of that new proposed assessment, or pay it and file a refund claim. The prohibition on filing a refund claim for amounts paid in connection with amnesty does not prevent a refund claim for amounts paid subsequent to or prior to amnesty, if the statute of limitations is still open.