Franchise Tax Board

High Net Worth Family Tax Report, Vol. 8, No. 2 -- May 2013

by Loeb & Loeb LLP on 5/18/2013

President’s fiscal year 2014 budget contains numerous tax provisions - President Barack Obama released his proposed budget for the government’s fiscal year 2014 on April 10, 2013, and, not surprisingly, the budget...more

Bill Aims To Make Foreign Nonqualified LLC Contracts Voidable

by Keith Paul Bishop | Allen Matkins Leck Gamble Mallory & Natsis... on 5/6/2013

As discussed in prior posts, “transacting intrastate business” is not the same as “doing business”. See You may Be Doing Business in California Even When Not Transacting Intrastate Business. The former is what determines...more

The FTB’s “Doing Business” Trap For Foreign LLCs With California Managers, Members Or Agents

by Keith Paul Bishop | Allen Matkins Leck Gamble Mallory & Natsis... on 4/8/2013

According to the California Franchise Tax Board, a limited liability company classified as a partnership must do all of the following...more

FTB Announces Temporary Reprieve on Retroactive Assessment of Qualified Small Business Stock Taxes

by Matthew Portnoff | Manatt, Phelps & Phillips, LLP on 3/7/2013

On January 8, 2013, we published a newsletter (a copy of which can be found here) detailing the Franchise Tax Board's ("FTB") questionable legal and policy decision to begin collecting on a retroactive basis approximately...more

The State Of California Seeks Back Taxes From Small-Business Shareholder- Not So Fast

by Anthony Diosdi | Moskowitz LLP on 2/14/2013

A closer look at federal constitutional case law would seem to indicate that the State of California may not find it so easy to seek refunds plus interest after all....more

California’s Attempt to Retroactively Tax its Residents

by Marty Dakessian, Kyle O. Sollie | Reed Smith on 2/12/2013

In Cutler v. Franchise Tax Board, a case litigated by Reed Smith, a California Court of Appeal held that the California property and payroll requirements of California’s Qualified Small Business Stock provisions were invalid....more

Tax Alert: FTB Disallows California Qualified Small Business Stock Benefits

by Adam Halpern, Andrew Kim, Ronald Schrotenboer | Fenwick & West LLP on 2/5/2013

The California Franchise Tax Board (FTB) recently issued FTB Notice 2012-03, stating that the FTB will disallow the exclusion or deferral of gain under California's qualified small business stock (QSBS) statute for all tax...more

FTB Retroactively Denies "Qualified Small Business Stock" Personal Income Tax Benefits

by David Herbst, Matthew Portnoff | Manatt, Phelps & Phillips, LLP on 1/9/2013

On December 21, 2012, the Franchise Tax Board ("FTB") released Notice 2012-03 (the "FTB Notice"), which notice outlines the procedures the FTB will apply in response to the Court of Appeal's recent decision in Cutler v....more

Microsoft Court Holds Right to Replicate Software Is an Intangible Property Right for Purposes of California’s Sales Factor...

by Marty Dakessian, Mike Shaikh, Kyle O. Sollie, Brian W. Toman | Reed Smith on 12/28/2012

Earlier this week, the California Court of Appeal, First District, held that the right to replicate and install software is an intangible property right for sales-factor sourcing purposes. Thus, for the years at issue, the...more

FTB issues Notice to Retroactively Deny "Qualified Small Business Stock" Tax Benefits. Amended Returns Should be Filed.

by Matthew Richardson | Sheppard Mullin Richter & Hampton LLP on 12/28/2012

A California appellate court recently held as unconstitutional the California statutes extending the benefits of selling “qualified small business stock” (QSBS) to California taxpayers. In Cutler v. Franchise Tax Board (2012)...more

California’s Proposition 39: Not-so-Mandatory Single Sales Factor

by Marty Dakessian, Mike Shaikh, Kyle O. Sollie, Brian W. Toman | Reed Smith on 11/14/2012

On November 6, California voters passed Proposition 39, which changes the state’s default apportionment to a single sales factor method. Additionally, Proposition 39 adopted a mandatory market-sourcing method for sourcing...more

California Tax Refund Opportunity Based on Gillette

by Morgan Lewis on 10/12/2012

Taxpayers should review their apportionment methodology for prior taxable years to determine whether they should file refund claims based on the Multistate Tax Compact's evenly weighted three-factor apportionment formula....more

Gillette Reinstated. If Compact is Elected, LCUP Penalty Shouldn't Apply

by Reed Smith on 10/10/2012

The First Appellate District of the California Court of Appeal has once again held that California taxpayers may avail themselves of the Multistate Tax Compact (the Compact) election, which allows for taxpayers to file...more

A Close Shave: California Court of Appeal Rules on Multistate Compact Election

by Sutherland Asbill & Brennan LLP on 10/3/2012

On October 2, 2012, the California Court of Appeal issued an opinion on rehearing in The Gillette Company et al. v. Franchise Tax Board, reversing in full the trial court’s decision in favor of the Franchise Tax Board (FTB)....more

Law That Allows Taxpayer To Defer Capital Gains On Sale Of Small Business Stock With The Subsequent Purchase Of Stock In...

by Kronick, Moskovitz, Tiedemann & Girard on 9/11/2012

A court of appeal recently found unconstitutional a Revenue and Taxation Code provision that allows a taxpayer to defer capital gains when he or she sells stock in a qualified small business if the taxpayer uses the gain to...more

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