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California FTB Limited Liability Corporation Tax Settlement

Settlement Structure: Claims Made

Active: Open

Case Summary:

The California Franchise Tax Board has agreed to settle class actions about the LLC levy it imposed on limited liability corporations for tax years 1994 through 2006. During this time, LLCs were required to pay an annual levy, or fee, based on their total worldwide income, regardless of whether that income came from activities in or outside of California. The complaint alleged that the levy was unconstitutional.

Docket Number:

Judicial Council Coordination Proceeding No. 4742

Company: California Franchise Tax Board

Filing Deadline: July 5, 2022

Class Period: January 1, 1994 to December 31, 2006

Objection Deadline: July 5, 2022

Exclusion Deadline: July 5, 2022

Final Approval Hearing: August 2, 2022

Proof of Purchase:

You do not have to have documentation, but you may be able to claim a large refund with documentation.

Eligibility:

You may be eligible if you are or have an LLC that derives its income from business operations solely within California, within and without California, or solely without California, that has paid the levy and filed timely claims for a tax refund of the levy, that has had its claim for a refund deemed denied or denied and whose period for filing a lawsuit under Rev. & Tax. Code § 19382 remained open as of the filing of either the Bakersfield Complaint on April 25, 2007 or the Centerside Complaint on February 4, 2010.

Typical Settlement Amount:

About $15 million is expected to be left as the net settlement fund to be used for paying refunds. Claims will be divided into four categories and the four groups will receive different proportional amounts of what they paid as refunds. For more information on how the funds will be distributed, see the Notice at https://angeion-public.s3.amazonaws.com/www.FTBLLCTaxSettlement.com/docs/FTB_Long+Form+Notice_FINAL_website_04.28.2022.pdf.

Total Settlement Amount: $22 million

Class Representative Proposed Incentive Fee:

$10,000 in total

Law Firms:
Calvo Fisher and Jacob LLP
Silverstein & Pomerantz, LLP

Claim Form: California FTB Limited Liability Corporation Tax Settlement Claim Form

Case Name: FTB Limited Liability Corporation Tax Refund Cases

Settlement Website: California FTB Limited Liability Corporation Tax Settlement Website

Claims Administrator:
Angeion Group

Claims Administrator Contact Information:

FTB LLC Tax Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
info@FTBLLCTaxSettlement.com
888-874-5887

Tags: Limited Liability Corporations, Tax, Tax Charges