For LLCs with the same facts as Ventas, and who filed protective refund claims, the Notice states the refund will be computed using one of two methods:
The Default Method:
- If the LLC attached a Schedule R to its LLC Return of Income (Form 568) filed for each year that a claim for refund has been submitted, the FTB will use the amount reported on Schedule R, Schedule R-1, Total Sales, Column (b), Total within California, to calculate the revised LLC fee and compute the available refund, if any.
- No additional information is needed if the LLC attached a Schedule R to its Form 568. The LLC does not need to resubmit a Schedule R.
- However, if the LLC did not attach a Schedule R with its Form 568, the LLC needs to complete a Schedule R for each year that a claim for refund has been filed and submit the Schedule(s) R to FTB, as described below.
The Alternative Method (w/August 20, 2009 DEADLINE!):
- An LLC may choose to have its refund calculated by completing the LLC Income Worksheet from the 2008 LLC Tax Booklet (Form 568 Booklet) with the respective information for each tax year that a claim for refund is filed.
- The LLC must provide the completed LLC Income Worksheet to FTB with a revised calculation of the LLC's Total California Income no later than August 20, 2009.
- If the LLC does not provide this information by August 20, 2009, FTB will compute the revised LLC fee and the refund amount, if any, using the Default Method described above.
ACTION REQUIRED
If you are using the Default Method to calculate your refund, but did not attach a Schedule R to the Form 568, or you choose to have the refund calculated using the Alternative Method, you must provide the following information:
- The LLC's name and address, together with the name and phone number of the managing member or designated contact person.
- The LLC's Secretary of State file number or Franchise Tax Board temporary LLC number (for unregistered entities), and Federal Employer Identification Number.
- Tax years involved.
- The LLC must choose either "(a)" or "(b)":
(a) For the Default Method: a completed Schedule R if the LLC did not attach a Schedule R to the original Form 568 filed for each tax year that a claim for refund is filed, or
(b) For the Alternative Method: a completed 2008 LLC Income Worksheet with the respective information for each tax year that a claim for refund is filed.
NO ACTION REQUIRED
If the LLC is using the Default Method and has provided the completed Schedule R, you are not required to submit any further information at this time.
FAX Info To:
This information may be faxed to the FTB at: (916) 845-9796,
Or Mail To:
ABS 389 MS: F340
Franchise Tax Board
C/O FTB Notice 2009-04
P.O. Box 942867
Sacramento, CA 94267-8888
For Courier Service Delivery or Private Courier Mail:
ABS 389 MS: F340
Franchise Tax Board
C/O FTB Notice 2009-04
Sacramento, CA 95827
According to the Notice, faxed information will expedite the receipt of your information.
NEW CLAIMS for Refund Based on the Ventas Decision
If an LLC hasn't filed a claim yet, a claim may be filed, assuming the statute of limitations is still open.
If an LLC wants to file a claim for refund based on the Ventas decision, the LLC or its representative should fax a letter to the FTB stating, "This letter constitutes a claim for refund for (taxpayer's name) – Income Earned Within and Outside of California."
The letter must include:
- For LLCs using the Default Method: the information listed above in items 1-4(a)
under "Claims for Refund Previously Filed." - For LLCs that choose the Alternative Method: the information listed above in items 1-3 and 4(b) under "Claims for Refund Previously Filed."
Fax this letter and additional information to (916) 845-9796 or mail to one of the addresses shown above. The LLC's managing member or representative with a power of attorney must sign this letter, under penalty of perjury. Note that claims may only be filed for those tax years for which the statute of limitations remains open.
VIEW NOTICE: Click on the following link to access the Notice (FTB 2009-04):
http://www.ftb.ca.gov/law/notices/2009/2009_4.pdf
If you have any questions, please contact me at leveragesalt@earthlink.net.