California corporate and individual taxpayers with pending audits, protests, appeals or settlement proceedings with the California Franchise Tax Board (FTB), or with comparable proceedings pending with he California State Board of Equalization (BOE) should pay particular attention to new penalties recently enacted by the Legislature and Gov. Arnold Schwarzenegger as…
For the first time in over 20 years, the California Court of Appeal has issued a published decision interpreting the California residency provisions of Revenue and Taxation Code section 17014. In Homer E. Nobel et al. v. Franchise Tax Board, the court addressed whether the taxpayers were residents of California…
Income and Franchise Taxation: Apportionment/Allocation and Business/NonBusiness Income In Appeal of Polaroid Corp., the State Board of Equalization (SBE) held that proceeds received by the taxpayer from apatent infringement lawsuit were business income and must be included in the (numerator and the denominator of the) sales factor. The SBE also…
Legislation: Income and Franchise Taxation 2002 Cal Stat. ch. 488 is the major tax bill for the 2002 Legislative Session that responds to California’s $23.6 billion budget gap: (1) it conforms California law to federal law relative to the bad debt reserve of large banks (California had permitted charge-offs to…
Legislation: Income and Franchise Taxation 2001 Cal. Stat. Ch. 334, amending the taxpayer bill of rights, requires the Franchise Tax Board (FTB), to provide documents given to board members on items on the board’s agenda to interested parties without delay before the board can take final action. Chapter 334 also…
On September 25, 2000, the California Franchise Tax Board (FTB) issued FTB Notice 2000-7, which requested public comment and gave notice of a symposium regarding a new proposed regulation relating to audit procedures. The FTB’s proposal is to add Regulation section 19032, “Audit Procedures,” to Title 18 of the California…
Assembly Bill 2412 (Migden and Aroner), now pending in the California Legislature, would drastically expand the California rules for nexus to tax under the California Sales and Use Tax Law. The bill should be of high interest to Internet retailers who do not have a physical presence in California. A.B.…
Legislation: Income and Franchise Taxation 1999 Cal. Stat. ch. 64, amending Cal. Rev. & Tax. Code section 23153, amending and repealing Cal. Rev. & Tax. Code section 23221, adding Cal. Rev. & Tax. Code 23221, exempts every corporation that incorporates or qualifies to do business in California on or after…