The California Franchise Tax Board just issued Notice 2020-02, providing an extension to July 15th for taxpayers to file income/franchise tax refund claims, protests, or appeals and petitions for rehearing at the Office of Tax Appeals that would normally have statutory due dates during the “postponement period” of Mar. 12, 2020 to July 15,
California Office of Tax Appeals Announces an Interested Parties Meeting
The California Office of Tax Appeals (OTA) has announced an Interested Parties Meeting to discuss, in an informal proceeding, proposed changes to its rules for tax appeals. The meeting is scheduled for April 3rd and will be held telephonically and live streamed. Both the Notice and the proposed changes can be found on the OTA
What you need to know today about COVID-19 and California taxes
Not even state taxes are immune from the COVID-19 pandemic. Below is a quick checklist – as of the time of publication – of coronavirus-related items and concerns affecting California state taxes.
- Concerned with an upcoming California tax return filing date? On March 12, 2020, Governor Newsom issued Executive Order N-25-20 which, among other items,
California Court of Appeal Tosses Sales Tax Case
The California Court of Appeal for the Fourth Appellate District upheld a trial court’s judgment that a plaintiff lacked standing to challenge the sales tax practices of a technology company because she did not establish the existence of an economic injury. The plaintiff purchased cellphones from the technology company at a discounted price as part
Your customer is not your customer – California Office of Tax Appeals (OTA) finds that a nonresident did not have California sourced income
The California Office of Tax Appeals held that pursuant to market-based sourcing rules, a nonresident individual did not derive California sourced income and was not required to file a California return or pay personal income tax. The taxpayer resided in Texas and worked as an independent contractor for Christopher Konrad Consulting, LLC (Konrad), a company
California – OTA Holds You Can Have All of VAT (in the Sales Factor Denominator)
On October 3, 2019, California’s Office of Tax Appeals (OTA) held that value-added tax (VAT) imposed on the provision of services is included in the sales factor of California’s apportionment formula. The taxpayer, filing on a worldwide unitary basis, included VAT in its sales factor denominator that it billed, and collected, to its customers in
California Court Rules that New Parcel Tax Needed Two-Thirds Vote
A California Superior Court ruled that a City of Oakland ballot measure seeking to impose a 30 year parcel tax to fund educational programs required a two-thirds vote. Ballot measure AA was the result of a citizens’ initiative. In publicly circulated materials prior to the election, the City Attorney indicated that passage of Measure AA
Swart Distinguished: Foreign LLC Doing Business in California by Virtue of its 50% Interest in Pass-through Entity
The California Office of Tax Appeals (OTA) found that a foreign single-member LLC domiciled in Georgia was “doing business” in California by reason of its 50 percent interest in a pass-through LLC operating in California (LLC) and thus, was subject to the state’s annual LLC tax. The OTA focused on California’s definition of “doing business”
Marketplace Monday: CDTFA Releases Initial Discussion Paper in Anticipation of Interested Parties Meeting on Marketplace Facilitator Act
On October 4, 2019, the California Department of Tax and Fee Administration (CDTFA) released its Initial Discussion Paper in anticipation of an Interested Parties Meeting (IPM) set for October 15, 2019 in Sacramento. The subject of both the IPM and the Discussion Paper is how to interpret, clarify and make specific the Marketplace Facilitator Act.
Marketplace Monday – California Legislation Pending on Marketplace Sellers
California Assembly Bill (AB) 1790 passed the Legislature on September 26, 2019 and was sent to the Governor. The Governor has until October 13th to act on the bill. The Legislative Counsel’s Digest for AB 1790 states the bill would require a marketplace, as defined, to ensure that their terms and conditions regarding commercial