Apportionment, Franchise Tax Board

California Legislature drops the other shoe, kicking taxpayers right in the apportionment formula

Eversheds Sutherland (US) LLP on 6/11/2024

California legislators released bill language addressing Governor Gavin Newsom’s “May Revise” to the state budget that includes the Governor’s so-called “apportionment fix.” If enacted, Assembly Bill 167 and Senate Bill 167...more

Better than a box of chocolates: Foreign dividends included in California sales factor denominator

Eversheds Sutherland (US) LLP on 2/26/2024

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)....more

“No Sugarcoating: The California Office of Tax Appeals Limits the California FTB’s Application of Legal Ruling 2006-01”

Pillsbury - SeeSalt Blog on 11/14/2023

In the Appeal of Southern Minnesota Beet Sugar Cooperative (2023-OTA-342P) (Beet Sugar), the California Office of Tax Appeals (OTA) issued a precedential opinion holding the California Franchise Tax Board (FTB) is not...more

California Court Holds Nonresidents’ Pass-through Income from Intangibles Is Taxable if It Is Classified as Business Income at the...

Pillsbury - SeeSalt Blog on 6/10/2022

The California Court of Appeal held a nonresident S corporation shareholder’s pro rata share of gain on the sale of goodwill classified as business income by the S corporation has a California source and is subject to tax for...more

Seller Beware - Court Rules That California Can Tax Gain from the Sale of Goodwill

Venable LLP on 6/7/2022

A California state appellate court recently upheld the trial court's decision in The 2009 Metropoulos Family Trust v. Franchise Tax Board that nonresident shareholders of an S corporation source gain on the S corporation's...more

California Revises Draft Alternative Apportionment Regulation: Confidentiality Waiver Remains

Morrison & Foerster LLP on 11/1/2019

The California Franchise Tax Board (“FTB”) recently issued a revised draft regulation regarding the procedures for a taxpayer to petition for alternative apportionment under section 25137(d), title 18 of the California Code...more

Nonresident Service Provider Subject to California Income Tax on Services Provided to California Customers

Coblentz Patch Duffy & Bass on 9/18/2019

The California Office of Tax Appeals (“OTA”) recently issued a decision finding that a nonresident sole proprietor, who performed all services outside of California but performed such services for California customers, was...more

California FTB Provides Guidance on Certain Section 382 Calculations - Tax Update Volume 2017, Issue 3

Troutman Pepper on 5/23/2017

California requires taxpayers that have income within and outside the state to "apportion" their overall income between the two categories based upon certain factors and rules for determining their California tax liability....more

California FTB Schedules Interested Parties Meeting on Short Notice to Discuss Issues in the Regulations on Sourcing Income from...

McDermott Will & Emery on 1/6/2017

The California Franchise Tax Board has scheduled an Interested Parties Meeting to discuss proposed changes to its apportionment regulations. Several years ago, when the statute called for sourcing receipts from services and...more

Apportionment › Franchise Tax Board

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