Legal ruling 346

Statue of Limitations - Refund Claims

The words "other competent authority" contained in Revenue and Taxation Code Section 19053.6 do not include such non-federal authority as the Guam Commissioner of Revenue and Taxation. An adjustment by that department to a Guam income tax return thereafter reported to California thus does not activate the special provisions of that section extending the statute of limitations for filing refund claims.

Advice has been requested as to whether an adjustment to a Guam income tax return by the Commissioner of Revenue and Taxation of that Territory and thereafter reported to California is considered to be made by "other competent authority" within the meaning of Section 19053.6 of the Revenue and Taxation Code so as to extend thereunder the limitations period for filing certain refund claims.

If a taxpayer is required by Section 18451 to report to the Franchise Tax Board "a change or correction by the Commissioner of Internal Revenue . . . or other competent authority" and so reports such change then he may, under Section 19053.6, file a claim for refund based on this change within six months from the date it was reported. Section 18451, governing the meaning of the words "other competent authority" contained in Section 19053.6, restricts that language to persons or entities with the authority to change only those tax returns filed with the "United States Treasury Department."

Section 19513.01 of the Guam Government Code requires that Guam income tax returns be filed with that Territory's Commissioner of Revenue and Taxation and its Section 19501.04 provides that tax revenues remitted with those returns are the exclusive funds of Guam. Accordingly, a change made to a Guam return by its commissioner is not made by "other competent authority" for Section 18451 purposes and Section 19053.6 would not be applicable to extend the statute of limitations for filing a refund claim based upon such a change.