The California Franchise Tax Board (FTB) administers the state’s corporate franchise and income taxes. The California Legislature authorized the FTB to promulgate regulations in order to implement and interpret the governing statutes. Beyond issuing formal guidance, however, the FTB historically, and routinely, has issued informal guidance on a broad array of topics and issues for
California
Don’t count on a sales tax discount: California Court of Appeal supports the validity of Regulation 1585
The California Court of Appeal for the Third Appellate District held that the purchase of “discounted” cell phones bundled together with wireless services requires payment of sales tax based on the cell phone’s full price.
Plaintiffs purchased cell phones at a reduced cost, together with wireless services, in a “bundled transaction.” The bundled transaction included…
Legal Alert – Better than a box of chocolates: Foreign dividends included in California sales factor denominator
On February 14, 2024, the California Office of Tax Appeals (OTA) denied the California Franchise Tax Board’s (FTB) request for rehearing in the Appeal of Microsoft Corporation and Subsidiaries (OTA Case No. 21037336). Microsoft is allowed to include 100 percent of its foreign dividend income in its sales factor denominator. This is a huge opportunity…
California appellate court rejects single-subject rule challenge to single-sales factor apportionment
A California appellate court held that Proposition 39, which mandated single-sales factor apportionment, did not violate the single-subject rule. In 2012, California voters enacted Proposition 39, which established a program to promote the creation of clean energy jobs. It funded the program by eliminating the option for taxpayers to apportion its California tax based on…
California Tax Foundation webinar
On February 13, join Eversheds Sutherland Counsel John Ormonde as he helps review San Francisco’s business tax structure, administrative challenges, and changes that may be presented to voters in 2024 during a California Tax Foundation webinar.
For more information and to register, click here.
Legal Alert: Reforming San Francisco’s gross receipts tax
On February 5, 2024, the Offices of the Controller and Treasurer & Tax Collector for the City and County of San Francisco published a report outlining tax reform recommendations in time to inform a potential ballot measure for the upcoming November 2024 election. The report recommends significant changes to San Francisco’s gross receipts tax.
Read…
Here we go again: How 2024 is shaping up to be an exciting year in California tax
Good tax legislation. Bad tax legislation. Massive budget shortfall. A November general election around the corner. Curious agency guidance. And looming corporate tax appeal decisions. 2024 is shaping up to be a wild year for California tax.
Join Eversheds Sutherland attorneys Tim Gustafson and Eric Coffill on Thursday, January 25 for a discussion of what…
FTB audits: Considerations for handling requests for statute extensions by FTB auditors
In this article originally published by CalCPA in the September issue of California CPA, Eversheds Sutherland Senior Counsel Eric Coffill provides some considerations in deciding whether to grant or deny an auditor’s request for a statute waiver in a pending audit, a common issue arising in FTB audits.
Read the full article here.
Tips for settling tax matters with the FTB and CDTFA
In the October 2023 edition of Spidell’s California Taxletter, Eversheds Sutherland Senior Counsel Eric Coffill shares six tips for settling tax matters with the FTB and the
CDTFA.
Read the full article here.
How gross! San Francisco’s troubled tax system
There has been an alarming expansion of local taxes. In some localities, this includes new local taxes imposed on businesses. In other localities, this includes aggressive interpretations of existing local ordinances by local tax agencies.
In this installment of A Pinch of SALT in Tax Notes State, Eversheds Sutherland attorneys Michele Borens, John Ormonde…