Article 1 - Claim for Refund

California Revenue and Taxation Code — §§ 41100-41106

Sections (10)

Amended by Stats. 2022, Ch. 747, Sec. 29.5. (AB 988) Effective September 29, 2022. Operative January 1, 2023, pursuant to Section 39 of Stats. 2022, Ch. 747.

(a)If the department determines that any amount, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed, the department shall set forth that fact in the records of the department, certify the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid, and credit the excess amount collected or paid on any amounts then due and payable from the person from whom the excess amount was collected or by whom it was paid under this part, and the balance shall be refunded to the person, or their successors, administrators, or executors. Any

determination by the department pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days after the effective date of that determination.

(b)Any overpayment of

surcharge by a service user to a service supplier or by a prepaid consumer to a seller who is required to collect the surcharge shall be credited or refunded by the state to the service user. However, if the service supplier or seller has paid the amount to the department and establishes to the satisfaction of the department that it has not collected the amount from the service user or has refunded the amount to the service user, the overpayment may be credited or refunded by the state to the service supplier.

§ 41101

Amended by Stats. 2021, Ch. 432, Sec. 101. (SB 824) Effective January 1, 2022.

A refund shall not be approved by the department after three years from the last day of the second month following the close of the reporting period for which the overpayment was made, or, with respect to determinations made under Article 3 or 4 of Chapter 4 of this part, after six months from the date the determinations become final, or after six months from the date of overpayment, whichever period expires the later, unless a claim therefor is filed with the department within that period. A credit shall not be approved by the department after the expiration of that period unless a claim for credit is filed with the department within that period.

§ 41101.1

Amended by Stats. 2021, Ch. 432, Sec. 102. (SB 824) Effective January 1, 2022.

(a)The limitation period specified in Section 41101 shall be suspended during any period of a person’s life that the person is financially disabled.

(b)(1) For purposes of subdivision (a), a person is financially disabled if the person is unable to manage the person’s financial affairs by reason of medically determinable physical or mental impairment of the person that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months. A person shall not be considered to have an impairment unless proof of the existence thereof is furnished in the form and

manner as the department may require.

(2)A person shall not be treated as financially disabled during any period that the person’s spouse or any other person is authorized to act on behalf of the person in financial matters.

(c)This section applies to periods of disability commencing before, on, or after the effective date of the act adding this section, but does not apply to any claim for refund that (without regard to this section) is barred by the operation of rule of law, including res judicata, as of the effective date of the act adding this section.

§ 41101.2

Amended by Stats. 2021, Ch. 432, Sec. 103. (SB 824) Effective January 1, 2022.

Notwithstanding Section 41101, a refund of an overpayment of any surcharge, penalty, or interest collected by the department by means of levy, through the use of liens, or by other enforcement procedures, shall be approved if a claim for a refund is filed within three years of the date of an overpayment.

§ 41101.3

Amended by Stats. 2022, Ch. 747, Sec. 30. (AB 988) Effective September 29, 2022.

(a)A claim for refund that is otherwise valid under Sections 41101 and 41102 that is made in the case in which the amount of surcharges determined has not been paid in full shall be deemed to be a timely filed claim for refund with respect to all subsequent payments applied to that determination.

(b)For purposes of this section, “amount of surcharges determined”

means an amount of

surcharges,

interest, or penalty, with respect to a single determination made under Article 3 (commencing with Section 41070) or Article 4 (commencing with Section 41080) of Chapter 4.

(c)This section shall apply to all claims for refund on or after the effective date of the act adding this section.

§ 41102

Added by Stats. 1976, Ch. 443.

Every claim shall be in writing and shall state the specific grounds upon which the claim is founded.

§ 41103

Added by Stats. 1976, Ch. 443.

Failure to file a claim within the time prescribed in this article constitutes a waiver of any demand against the state on account of overpayment.

§ 41104

Amended by Stats. 2021, Ch. 432, Sec. 104. (SB 824) Effective January 1, 2022.

Within 30 days after disallowing any claim in whole or in part the department shall give notice of its action to the claimant in the manner prescribed for service of notice of a deficiency determination.

§ 41105

Amended by Stats. 2022, Ch. 747, Sec. 31. (AB 988) Effective September 29, 2022.

Interest shall be paid upon any overpayment of any amount of surcharges at the modified adjusted rate per month established pursuant to Section 6591.5, from the first day of the calendar month following the month during which the overpayment was made. In addition, a refund or credit shall be made of any interest imposed upon the person making the overpayment with respect to the amount being refunded or credited.

The interest shall be paid as follows:

(a)In the case of a refund, to the last day of the calendar month following the date upon

which the person making the overpayment, if the person has not already filed a claim, is notified by the department that a claim may be filed or the date upon which the claim is approved by the department, whichever date is the earlier.

(b)In the case of a credit, to the same date as that to which interest is computed on the surcharge or amount against which the credit is applied.

§ 41106

Amended by Stats. 2021, Ch. 432, Sec. 106. (SB 824) Effective January 1, 2022.

(a)If the department determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon.

(b)If any person who has filed a claim for refund requests the department to defer action on the claim, the

department, as a condition to deferring action, may require the claimant to waive interest for the period during which the person requests the department to defer action on the claim.