LLC fees unconstitutional? File a protective claim.

The Superior Court of California has issued a proposed ruling stating that California's levy on limited liability companies (in Rev. and Tax Code Sec. 17942) is unconstitutional.

CalCPA anticipates that the issue will be appealed to the U.S. Supreme Court. However, should taxpayers eventually prevail, there is the opportunity for refunds of fees originally paid.

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For FTB guidance on filing a protective claim, visit www.ftb.ca.gov/professionals/taxnews/articlel/lcfee.html.

Download the Superior Courts decision at www.calcpa.org/members/knowledge/statetax.htm.