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 – 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
It’s None of Your Business: California Office of Tax Appeals Rejects FTB’s Broad Test for Doing Business
The California Office of Tax Appeals (OTA) reversed the Franchise Tax Board’s (FTB) determination that an out-of-state limited liability company (LLC) had taxable nexus with California solely because it held an ownership interest in an LLC operating in the state that ranged from 1.12% to 4.75%. California imposes an annual $800 tax on LLCs “doing