California LLC Fee Constitutionality Case May Go To US Supreme Court


Via Spidell

On February 10, 2009, Ventas Finance I, LLC, filed a petition to the U.S. Supreme Court to hear their LLC fee case. The petition asks the Court to review the California Court of Appeal’s decision, which ruled that, although the LLC fee statute was unconstitutional and could not be judicially reformed, the taxpayer was still liable for a fee based on California-only income rather than a refund of 100% of the fee.

For LLCs with California-source income that filed protective claims for refund, the FTB will hold the claims (and any potential refunds) until this case is final. As a courtesy, we have prepared and forwarded to any potentially effected Nienow & Company, LLP clients protective refund claims for all years open under the statute of limitations.


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