Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2010

Sales And Use Tax Court Decisions

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Owens-Corning Fiberglas Corp. v. State Board of Equalization . . . (1974)

No Refund of Voluntary Payment of Estimated Tax Liability

Taxpayer sought a refund of amounts voluntarily paid to the Board of Equalization in advance payment of estimated tax liability. Taxpayer made the payments during an extension of time within which a notice of deficiency determination might be mailed. The extension period expired, however, before the Board actually issued a deficiency notice. Taxpayer contended that the Board could not retain the amounts paid because the deficiency notice was not issued within the statutory period of limitations.

The Court of Appeal, in holding that taxpayer was not entitled to a refund, noted that the record showed that at the time the payment was made, taxpayer's tax delinquency was in excess of the sum paid. The court observed that taxpayer's liability to pay the deficiency was a continuing liability and was not created by the issuance of the deficiency notice and that in issuing a deficiency determination the Board had merely determined that, after the payment in question, there still remained a balance due which taxpayer had failed to pay. The court pointed out that the Board had recognized the bar of the statute of limitations as to any amounts due over and above the amount paid. Owens-Corning Fiberglas Corp. v. State Board of Equalization (1974) 39 Cal.App.3d 532.