2005 California Revenue and Taxation Code Sections 19381-19393 Article 3. Suit for Refund

19381.  No injunction or writ of mandate or other legal or equitable
process shall issue in any suit, action, or proceeding in any court
against this state or against any officer of this state to prevent or
enjoin the assessment or collection of any tax under this part;
provided, however, that any individual after  protesting a notice or
notices of deficiency assessment issued because of his or her alleged
residence in this state and after appealing from the action of the
Franchise Tax Board to the State Board of Equalization, may within 60
days after the action of the State Board of Equalization becomes
final commence an action, on the grounds set forth in his or her
protest, in the Superior Court of the County of Sacramento, in the
County of Los Angeles or in the City and County of San Francisco
against the Franchise Tax Board to determine the fact of his or her
residence in this state during the year or years set forth in the
notice or notices of deficiency assessment.  No tax based solely upon
the residence of such an individual shall be collected from that
individual until 60 days after the action of the State Board of
Equalization becomes final and, if he or she commences an action
pursuant to this section, during the pendency of the action, other
than by way of or under the jeopardy assessment provisions of this
part.
19382.  Except as provided in Section 19385, after payment of the
tax and denial by the Franchise Tax Board of a claim for refund, any
taxpayer claiming that the tax computed and assessed is void in whole
or in part may bring an action,  upon the grounds set forth in that
claim for refund, against the Franchise Tax Board for the recovery of
the whole or any part of the amount paid.
19383.  The credit of an overpayment of any tax in satisfaction of
any tax liability shall, for the purpose of any suit for refund of
the tax liability so satisfied, be deemed to be a payment in respect
of the tax liability at the time the credit is allowed.
19384.  The action provided by Section 19382 shall be filed within
four years from the last date prescribed for filing the return or
within one year from the date the tax was paid, or within 90 days
after (a) notice of action by the Franchise Tax Board upon any claim
for refund, or (b) the determination (including the issuance of a
decision, opinion, or dismissal) by the State Board of Equalization
on an appeal from the action of the Franchise Tax Board on a claim
for refund becomes final pursuant to Section 19334, whichever period
expires the later.
19385.  If the Franchise Tax Board fails to mail notice of action on
any refund claim within six months after the claim was filed, the
taxpayer may, prior to mailing of notice of action on the refund
claim, consider the claim disallowed and bring an action against the
Franchise Tax Board on the grounds set forth in the claim for the
recovery of the whole or any part of the amount claimed as an
overpayment.  For substitution of the 120-day period for the
six-month period contained in this section in a Title 11 case, see
Section 505(a)(2) of Title 11 of the United States Code.
19387.  Whenever an action is commenced against the Franchise Tax
Board under this article, a copy of the complaint and the summons
shall be served upon the Franchise Tax Board or the executive
officer.  A second copy of the complaint and the summons shall be
furnished to the Franchise Tax Board, but this requirement is not
jurisdictional.
19388.  Any action against the Franchise Tax Board under this
article shall be commenced and tried in any city or city and county
in which the Attorney General maintains an office.
19389.  The Attorney General or the counsel for the Franchise Tax
Board of California shall defend the action.
19390.  Failure to begin an action within the time specified in this
article shall be a bar against the recovery of taxes.
19391.  In any judgment of any court rendered for any overpayment,
interest shall be allowed at the adjusted annual rate established
pursuant to Section 19521 upon the amount of the overpayment, from
the date of the payment or collection thereof to the date of
allowance of credit on account of the judgment or to a date preceding
the date of the refund warrant by not more than 30 days, the date to
be determined by the Franchise Tax Board.
19392.  If judgment is rendered against the Franchise Tax Board, the
amount thereof shall first be credited against any taxes and
interest due from the taxpayer and the remainder refunded to the
taxpayer or his or her trust or estate, or in the case of a
corporation, its successor through reorganization, merger, or
consolidation, or its stockholders upon dissolution, by the Treasurer
on warrants drawn by the Controller.
19393.  For the purposes of the tax imposed under Chapter 2
(commencing with Section 23101) of Part 11, if any deduction, credit
or exclusion provided for in Part 10 (commencing with Section 17001)
or Part 11 (commencing with Section 23001) is finally adjudged
discriminatory against a national banking association contrary to
Section 548 of Title 12 of the United States Code, or is for any
reason finally adjudged invalid, or discriminatory under the
California Constitution, or the laws or the Constitution of the
United States, the tax of the favored taxpayer shall be recomputed by
the Franchise Tax Board for the taxable year in question, as of the
time of allowance of the deduction, credit, or exclusion, by
disallowing the deduction, credit, or exclusion, and any difference
between the amount of the tax as recomputed and the amount of the tax
as originally computed shall be subject to the provisions hereof
relating to original computations.