Statutes of Limitations (SOLs), according to R&TC Section 19306, that relate to California tax law for claims for refund or credit must be filed no later than:

(a) four years from the original due date of the return or

(b) four years from the date the return is filed if the return was filed within the "automatic extension" period.

(c) Additionally, a claim for refund or credit is timely with respect to payments made within one year of the claim filing date (the "look back" provision).

This claim must be unrelated to federal action. The postmarked date of the claim is the date it is considered "filed," and the taxpayer has the burden of proving the claim is timely filed.

California Franchise Tax Board provides a good example of how does the "look back" provision work.

The following example illustrates the "look back" provision of R&TC Section 19306. An individual taxpayer files a claim for refund for tax year 2003 on May 12, 2010. Since the taxpayer filed the claim more than four years after the original due date of the taxpayer's return (April 15, 2004), and more than four years after the latest date the taxpayer could have filed his return during the automatic extension period (October 15, 2004), the claim could not be allowed under the " four year" provision. However, if the taxpayer made any payments for tax year 2003 during the year prior to the date the claim for refund was filed, the claim, if meritorious, could be allowed to the extent of payments made during that one year period.

If, however, a taxpayer files a claim for refund before all tax and interest for that tax year are fully paid, the claim may be considered an "informal claim for refund." (R&TC Section 19322.1). The statute of limitations will be tolled (paused) as of the date the informal claim is filed. The claim will not be deemed "perfected" and filed until all of the tax and interest for that year are paid. If the informal claim is perfected, the amount of a refund or credit is limited to the total payments made within seven years of the date the claim is "perfected."

- We are CPAs, tax accountants, tax preparers, business managers and consultants based in Torrance, CA near Los Angeles & OC, serving the entire U.S. See us at Google+, Yelp, Google Brand, Yelp. Call us (424) 278-4838 or e-mail us at This email address is being protected from spambots. You need JavaScript enabled to view it..