EMC011075 ONLY TO ANSWER THIS QUESTION: PLEASE NO ONE ELSE…
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
Page 1 line 31 show regular tax
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?