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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 9694
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Customer Question

Person A received an unexpected refund of $2,000 dollars from California Franchise Tax Board in which we both agreed they were wrong in sending the refund….the check has not been cash and we want to send the check back.
Individual Return
540 Form Page 1 line 31 show regular tax of $2,000.
540 Form Page 3 line 48 shows regular tax of $2,000
540 Form page 3 Line 61 Alternative Minimum tax from Sch. P shows $3,000
540 Form page 3 line 97 Tax Due show $5,000
540 Form page 5 line 114 Total Tax Due shows $5,000
Person A wrote a check to California Franchise Tax Board for $5,000
Person A receives a correction Refund Check stating KC you made an error when you subtracted your Total Special Credits from your net tax.
How I believe they incorrectly calculated the Refund:
Schedule P 540
Sch. P 540 Line 24 shows Tentative Minimum Tax of $5,000
Sch. P 540 Line 25 Regular Tax before Credits from Form 540 line 31 of $2,000
Sch. P 540 Line 26 show Alternative Minimum Tax of $3,000
They incorrectly eliminated the Regular Tax of $2,000 and said this is your Credit and refunded the $2,000…which is incorrect because they should have added both the Regular tax of $2,000 and the Alternative Minimum tax of $3,000 for a total of $5,000.
Do you agree that the Tax should be $5,000 and the refund should not have been given?
If you agree…do we send the check back?…call them?…write a letter and send the check back?
Thank You
Submitted: 5 months ago.
Category: Tax
Expert:  Lane replied 5 months ago.
Hi,...Your requested expert is not online....I hold a law degree (JD, Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, on three continents, since 1986...I can help you here....You should not send the check back. Alternative Minimum Tax and Regular Tax are not "stacked."...One pays either the ATM or the regular tax, whichever is higher....Hence the name, 'Alternative" minimum.
Customer: replied 5 months ago.

I think it's perfectly clear that i wanted EMC011075 ONLY TO ANSWER THIS QUESTION: PLEASE NO ONE ELSE…

I will re-post the question. Please you cause me too much time trying make sure she answers the questions...I have worked with her consistently.

Expert:  Lane replied 5 months ago.
I hope this has helped. I answer so that you can be served quickly (as we are encouraged to do here). There's no way to know how long one of us may be offline....
Customer: replied 5 months ago.

AGAIN: EMC011075 ONLY TO ANSWER THIS QUESTION: PLEASE NO ONE ELSE…I believe this is perfectly clear.

Expert:  Lane replied 5 months ago.
Looks like our posts crossed there...That's OK, I'll opt out so that maybe she can pick up later...But please understand that another expert may answer. That's the nature of the animal here. JustAnswer wants the customers answered quickly....Opting out now...

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