Office of Tax Appeals

OTA Issues 45 Opinions, Including Three Pending Precedential Decisions

The Office of Tax Appeals posted 45 opinions to its website October 5, including three pending precedential cases. All of the precedent-setting cases involve taxes administered by the California Department of Tax and Fee Administration, and all were decided unanimously in favor of the tax agency. The pending precedential cases: The Appeal of Micelle Laboratories Inc., a complicated appeal involving the sale of a business that manufactured nutritional supplements, and the value of machinery, consumable supplies and other assets transferred…

Read More
University of California Seal

UC Regents Participated in Donor’s Tax-Avoidance Scheme, OTA Rules

The Office of Tax Appeals posted 143 opinions to its website this week, including one involving the University of California Board of Regents’ participation in a transaction determined to be designed solely to help a donor avoid income tax. In the Appeal of the Estate of Tony D. Stelliga, the OTA unanimously upheld a noneconomic substance transaction (NEST) penalty of $86,174, an interest-based penalty of $58,523, and applicable interest. Additionally, the OTA upheld the Franchise Tax Board’s decision to disallow…

Read More

Office of Tax Appeals: Taxpayer Who Relied on Instructions in FTB Publication Loses Appeal

The Office of Tax Appeals posted 23 opinions to its website April 7, including a “pending precedential” rejection of an appeal filed by a taxpayer who followed a Franchise Tax Board publication’s instructions with what the OTA termed an “unfortunate” omission. In the Appeal of Conrad E. Dandridge, the taxpayer challenged the FTB’s disallowance of a mortgage insurance premium deduction on his 2012 return. The taxpayer, who argued his case during a January 2019 hearing, said he relied on guidance…

Read More

Office of Tax Appeals: New Opinions Include Three Precedential Decisions

The Office of Tax Appeals posted 41 new opinions to its website March 3, including three “pending precedential opinions” decided largely in favor of the tax agencies. The three pending precedential opinions posted this week: The Appeal of Alfredo J. Talavera, involving a used-car dealer who was found to be personally liable for unpaid sales tax liabilities and appealed for a reduction in the amount owed. The OTA unanimously upheld the California Department of Tax and Fee Administration’s position, and…

Read More

Office of Tax Appeals: New Opinions Include Precedential Case on Definition of ‘Overcollection’

The Office of Tax Appeals posted 36 opinions to its website this week, including one “pending precedential” decision on what constitutes an “overcollection” by the Franchise Tax Board within the meaning of a technical advice memorandum (TAM) issued by the agency in 2007. This month’s opinions included 32 personal and franchise income tax cases and four appeals of business taxes, all involving common disputes and all decided unanimously in favor of the tax agencies. Most of the opinions have issuance…

Read More