The California Franchise Tax Board has pushed the extension to Monday for individual state taxpayers to claim a refund for tax year 2016.
State Controller and FTB Chairperson Betty T. Yee said this gives individual taxpayers extra time to collect money owed to them on their 2016 tax returns.
“Many people who were not required to file do not realize they could have years’ worth of tax credits due to them, which could have a big impact on their finances in these challenging times,” she said.
Taxpayers normally have four years to file a claim for a state tax refund in California. Tax year 2016 state income tax returns were due in 2017, so the standard four-year statute of limitations for claiming a refund would have expired April 15 of this year. With the postponement, individual taxpayers who are due a refund may now file their return for the 2016 tax year no later than Monday to claim their money.
Similarly, the IRS recently announced an extension to Monday for individual taxpayers who are due a refund on their tax year 2017 federal income tax returns. The IRS normally has a three-year statute of limitations to file a claim for a federal tax refund.
Taxpayers claiming a state refund for previous tax years can find Form 540 on the FTB’s forms locator (ftb.ca.gov/forms/search) for the applicable tax year.
In addition, the FTB has begun contacting more than 448,000 taxpayers who have California income but did not file a 2019 state income tax return. For most taxpayers, the deadline to file a 2019 state tax return was Oct. 15.
Taxpayers will have 30 days to file a state tax return or show why one is not due. For people who do not respond, FTB issues a tax assessment, which includes interest and penalties, using income records to estimate the amount of state tax due.
Some taxpayers may have earned too little income to require them to file a tax return. However, if they had wage withholding or they made estimated tax payments, they must file a tax return to get any tax credits or refund they are due.
For more information, visit ftb.ca.gov.