Form Ftb 1564 - Financially Disabled - Suspension Of The Statute Of Limitations (Page 2 of 5) in pdf

Instructions for Form FTB 1564

Financially Disabled – Suspension of the Statute of Limitations

These instructions are based on California Revenue and Taxation Code Section 19316.

General Information

4. The specific period (to the best of the physician's knowledge)

during which you were prevented from managing your

You have a time limit for filing a claim for refund known as the

financial affairs.

statute of limitations. (See California Revenue and Taxation Code

Sections 19306, 19308, 19311, 19312, and 19313.)

Have your physician complete Side 2 “Physician Affidavit of

Physical or Mental Impairment” to provide us with above

The law provides that the statute of limitations is suspended

information.

(extended) for the period you were financially disabled. If you are

unable to file a refund claim within the normal statute of

Persons legally authorized to act on your behalf. You must also

limitations, you get additional time to file your refund claim equal

provide the following information regarding anyone, including

to the number of days that you can show you were financially

your spouse, who was legally authorized to act on your behalf

disabled.

during the claimed suspension period.

Caution: If the normal statute of limitations for filing a refund

1. A written statement by you or the person filing the refund

claim had already expired by September 23, 2002, the financially

claim that no person, including your spouse, was authorized

disabled suspension cannot apply.

to act on your behalf in financial matters during the period of

requested suspension; or,

A Purpose

2. If a person was authorized to act on your behalf at some time

during the period, the dates the person was authorized to act

Use this form to show us the period you were financially

on your behalf.

disabled. Attach the form to each refund claim filed after the

normal statute of limitations.

Complete Side 1, Part II “Persons Legally Authorized to Act on

Your Behalf” to provide us with above information.

The form provides us with information we need to determine:

Internal Revenue Service Determined You Are Financially

• If you qualify as financially disabled.

Disabled. If you apply for and receive a determination from the

• The period of time the statute of limitations should be

Internal Revenue Service that you were financially disabled for a

suspended (extended).

specific period, we will follow the federal determination for that

• If your refund claim was filed within the time limit.

same period.

See Side 1, Part III, “Request Made with Internal Revenue

B Who is financially disabled?

Service.”

You are financially disabled during the period if you meet all

three requirements below:

D How is the suspension period calculated?

1. You were unable to manage your financial affairs because of a

The suspension period is calculated by determining the last date

medically determinable physical or mental impairment.

to file a refund claim under the applicable normal statute of

2. The impairment is either deemed to be terminal or is expected

limitations (California Revenue and Taxation Code Section 19306,

to last for a continuous period of not less than 12 months.

19308, 19311, 19312, or 19313). The period of disability is

added to the last date to come up with the new date to file a

3. No one, including your spouse, was legally authorized to act

refund claim.

on your behalf in financial matters.

Example 1: Michael Taxpayer filed his tax return for 2000 on

You have the burden of proof to show that you were financially

April 15, 2001. On March 15, 2005, Michael was in a car

disabled. Your refund claim filed after the normal statute of

accident. The doctor expected that because of his severe injuries,

limitations will not be allowed without the required proof.

he would be physically impaired and unable to manage his

Important: Financially disabled does not mean inability to pay

financial affairs for fourteen (14) months. Michael filed his refund

your tax liability.

claim on May 15, 2006. The last date for Michael to file a refund

claim under the normal statute of limitations for the 2000 taxable

C How do I show that I am financially

year was April 15, 2005. However, if Michael shows that he

disabled?

meets the qualifications to be considered financially disabled, the

statute of limitations for filing a refund claim would be extended

Medical information. You must provide a written statement from

by the fourteen-month duration of his disability, to June 15,

a qualified physician that includes:

2006.

1. The name and a description of your physical or mental

Example 2: Samantha Taxpayer filed her tax return for 2000 on

impairment.

April 15, 2001. On March 15, 2005, Samantha was in a car

2. The physician's medical opinion that the impairment pre-

accident. The doctor did not expect her to survive, and she was

vented you from managing your financial affairs.

in a coma for nine months (until December 15, 2005). The last

3. The physician's medical opinion that the impairment was or

date for Samantha to file a refund claim under the normal statute

can be expected to result in death or that its duration has

of limitations for the 2000 taxable year would be April 15, 2005.

lasted, or can be expected to last, for a continuous period of

However, if Samantha shows that she meets the qualifications to

not less than 12 months.

be considered financially disabled, the statute of limitations for

filing a refund claim would be extended by the nine-month

duration of her disability, to January 15, 2006.

FTB 1564 (NEW 03-2004) Page 1

Form Ftb 1564 - Financially Disabled - Suspension Of The Statute Of Limitations Page 2

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