California Appeals Office Affirms FTB’s Decision Denying Kimberly-Clark’s Claim for Corporate Income Tax Refund

The California Office of Tax Appeals (OTA) May 10 affirmed the Franchise Tax Board’s (FTB) decision denying Kimberly-Clark’s corporate income tax refund claim. The FTB issued a notice of proposed assessment to Kimberly-Clark for tax year 2011, assessing additional tax and large corporate underpayment penalty. Kimberly-Clark protested that the FTB should waive and refund the penalty as it violated due process and failed to satisfy the requirements of the state’s Revenue and Taxation Code section 19187. The FTB denied Kimberly-Clark’s refund claim. The OTA noted that: 1) no protest period or method was statutorily set to protest the underpayment penalty ...