Refund due on late returns - apply for amnesty?

[beast40]

What is the name of your state? California

Hello,

I did not file a tax return for the years 1998, 1999, 2000, and 2001 in California because I expected a refund. The returns I just completed for these years confirm a refund is due.

I was sent an amnesty letter for these years and remain unclear on the terms governing refunds and late fees, specifically:

-if one is due a refund, are fees assessed for filing a late return (I know this is not the case with the IRS)?

-if I apply for amnesty to be safe, will that revoke my right to a refund?


I have called the FTB three times to clarify this, and have been given conflicting information. The first time I was advised I can still obtain refunds (for the years within the statute of limitations) but was advised to apply for amnesty to be safe. I was also told no penalties are assessed for late returns due a tax refund. The second and third calls contradicted this information. However, I believe there is a distinction in the amensty, which I was unable to have clarified, between refunds paid on penalties / late taxes if it is later determined these were paid in error, and a refund due at the outset from a late return.

Thank you in advance for any help you might be able to provide.


PS I find it absurd that there is statue of limitations on refunds.

 

[Snipes5]

If you file the '01 return before April 15, 2005, they will give you the refund.

As for the others, no, there is no penalty for late filing if you are owed a refund.

You don't need the amnesty. Just file the returns (send them certified RRR), and be done with it.

Snipes

 

[Kansas4me]

Actually if you file amnesty you give up your right to file for a refund.

3. Do I lose any options if I choose tax amnesty?

After you've completed amnesty and we've waived the related fees and penalties, you may not submit a claim for refund or credit for any amount you paid for amnesty. Additionally, you may not maintain a protest or appeal of the amnesty amounts, and if you have a pending refund litigation case, you must request a dismissal from the court. If you’re currently contesting a tax liability, you may want to consult your tax professional for advice before applying for amnesty
(http://www.ftb.ca.gov/amnesty/faq.html#3)

Federal: Generally, taxpayers must file a claim for a credit or refund within three years of the date they filed their original return, or two years from the date the tax was paid, whichever is later. If no return is filed, a taxpayer generally has three years from the original due date to file the return. If a claim is not filed within these periods, a taxpayer usually forfeits the refund.

California: Refunds must be claimed within four years after the date of a timely filed return, or four years after the original due date, or one year from the date of overpayment -- whichever is later