Introduction

Pursuant to 2017 legislation, the duty of hearing and deciding administrative appeals for corporate franchise and income taxes and business taxes transferred from the California State Board of Equalization to Office of Tax Appeals (OTA). The law further requires OTA publish a written opinion for each case in which it makes a determination. The written opinion will be published on this page and identified as either precedential or nonprecedential. For the convenience of taxpayers and feepayers, the text of the opinions can be searched using the search function on this page.

 

Opinions

Prior Formal Opinions of the Board of Equalization.

OTA is the successor in interest to the State Board of Equalization (BOE). Prior decisions of the BOE may be cited in cases before OTA in support of a party’s argument. For a copy of any former BOE opinion, please email info@ota.ca.gov and include the name of the case and the year the opinion was issued.

Comments

If you have comments regarding whether a posted decision should or should not be precedential, please send those comments to precedential@ota.ca.gov.  Thank you for your input.

Franchise & Income Tax Opinions 

Corporate and individual taxpayers who dispute a final determination by the Franchise Tax Board (FTB) may appeal the FTB’s determination OTA. When OTA issues nonprecedential and precedential opinions, those decisions are published on this webpage. Taxpayers may look to precedential opinions for guidance as to OTAs position on the legal issues discussed in those opinions. If a precedential opinion’s facts and/or legal issues are similar to those in a pending appeal, OTA will generally rely on the precedential Opinion to make its determination in the pending appeal.

2020 Franchise and Income Tax Opinions
2019 Franchise and Income Tax Opinions
2018 Franchise and Income Tax Opinions

Business Taxes Opinions

OTA uses the term business taxes to refer to matters involving sales and use taxes, local and district tax reallocations, and the various special taxes and fees administered by the California Department of Tax and Fee Administration (CDTFA). Taxpayers and feepayers who disagree with denials of claims for refund or deficiency determinations issued by CDTFA may appeal such actions to OTA. Additionally, jurisdictions (i.e., cities and counties) that disagree with determinations issued by CDFTA may also appeal to OTA. When OTA issues nonprecedential and precedential opinions, those decisions are published on this webpage. Taxpayers and feepayers may look to precedential opinions for guidance as to OTA’s position on the legal issues discussed in those opinions. If a precedential opinion’s facts and/or legal issues are similar to those in a pending appeal, OTA will generally rely on the precedential opinion to make its determination in the pending appeal.

2020 Business Tax Opinions
2019 Business Tax Opinions
2018 Business Tax Opinions

Precedential Opinions – Franchise and Income Tax 

2020 Precedential Franchise and Income Tax Opinions
2019 Precedential Franchise and Income Tax Opinions
2018 Precedential Franchise and Income Tax Opinions 

Precedential Opinions – Business Tax

2020 Precedential Business Tax Opinions
2019 Precedential Business Tax Opinions
2018 Precedential Business Tax Opinions 

Opinions Pending Finality Due to Coronavirus Extensions

The following Opinions are not final due to extensions granted for the time to file a Petition for Rehearing. For more information on the Coronavirus extensions and how they apply to your appeal, visit the Coronavirus Impacts section of our website at ota.ca.gov.

Case NameMonthYearIssues
E. Ricciardelli
July2020Like-kind exchange (IRC 1031)
S. Nornhold and S. Nornhold
July2020Late-filing penalty (R&TC 19131); Demand penalty (R&TC 19133)
C. Carr
July2020Late payment penalty (R&TC 19132); Estimated tax penalty (R&TC 19136)
B. Mosher
July2020Responsible person liability (R&TC 6829); Finality penalty (R&TC 6565); Unreported sales (coffee shop/restaurant)
C. Perez
July2020Federal adjustments
K. Niltasuwan & N. Patrathiranond
July2020Unreported sales (restaurant)
W. Havens
July2020Statute of limitations (R&TC 19306); Financial disability (R&TC 19316)
M. Mitchem
July2020Statute of limitations (R&TC 19306); Financial disability (R&TC 19316)
K. Krishan and P. Lata
July2020Unreported sales, convenience store (R&TC 6481); Unreported rebates (R&TC 6012); Negligence penalty (R&TC 6484)
Z. Alawdi
July2020Unreported sales, liquor store (R&TC 6481); Negligence penalty (R&TC 6484)
A. Jones and S. Jones
July2020Federal adjustment (unreported pension income)
T. Sena
July2020Estimation of income (R&TC 19087); Late-filing penalty (R&TC 19131); Frivolous appeal penalty (R&TC 19714)
T. Vardell and A.Vardell
July2020Trade or business; Loss on sale of real property (IRC 165)
D. White
July2020Unreported retirement account distributions
G. Brown
July2020Federal adjustment (unreported pension income)
K. Jun and A. Jun
July2020Statute of limitations on assessment (R&TC 19057); Disallowed itemized deductions
J. Nader
July2020Unreported vehicle sales
J. Kim and M. Kim
July2020Federal adjustment (unreported pension income); California method of taxing part-year residents (R&TC 17041)
R. Arditi and K. Arditi
July2020Late payment penalty (R&TC 19132)
R. Lampkin and G. Lampkin
July2020Federal adjustment (disallowed business expenses); Accuracy-related penalty (R&TC 19164; IRC 6662)
Caleye Corporation
July2020Unreported sales (imported furniture); Definition of retailer (R&TC 6015)
Chopras Restaurant, Inc.
July2020Unreported sales (restaurant)
S. Krebs and F. Krebs
July2020Unreported income; Frivolous appeal penalty (R&TC 19714)
I. Singh & T. Singh
July2020Unreported sales, liquor store (R&TC 6481)
G. Stabile
July2020Taxation of former California resident's incentive stock option income (IRC 83; R&TC 17041, 17954; Regulation 17951-5(b))
M. Sanchez & M. Angulo
July2020Unreported sales (auto dealership); Definition of retailer (R&TC 6015)
M. Costa and K. Costa
April 2020Late payment penalty (R&TC 19132); Estimated tax penalty (R&TC 19136)
D. Ashikian
April2020Unreported sales (auto service station and convenience store); Nontaxable labor charges
S. Hubbard and K. Hubbard
April2020Late payment penalty (R&TC 19132)
P. Offutt and N. Offutt
April2020Taxability of paid family leave (IRC 85; R&TC 17083)
Z. Ni and J. Qian
April2020Federal adjustment; Taxation of IRA distributions (IRC 408)
A. Laspino
April2020Statute of limitations for issuing notice of determination (R&TC 6487(a)); Responsible person liability (R&TC 6829); Late payment penalty (R&TC 6592)
Y. Lin and H. Gao
April2020Filing status, nonresident spouse exception (R&TC 18521(c))
BenchmarkPortal, LLC
April2020Late filing penalty (R&TC 19131); Per partner late filing penalty (R&TC 19172); Late payment penalty (R&TC 19132); Underpayment of estimated LLC fee penalty (R&TC 17942); Interest abatement
P. Lewis
April2020Late payment penalty (R&TC 19132); Estimated tax penalty (R&TC 19136)
C. Sykes
April2020Estimation of income (R&TC 19087); Late-filing penalty (R&TC 19131); Demand penalty (R&TC 19133); Filing enforcement cost recovery fee (R&TC 19254); Frivolous appeal penalty (R&TC 19714); Interest abatement
D. Miller
April2020Federal adjustment (unreported tip income)
S. Andrews and B. Andrews
April2020Unreported sales of tangible personal property: Identification of retailer
D. O'Rear and J. O'Rear
April2020Determination of basis; Innocent spouse relief
D. Johnson
April2020Late payment penalty (R&TC 19132); Estimated tax penalty (R&TC 19136); Collection cost recovery fee (R&TC 19254)
J. Swoben
April2020Estimated tax penalty (R&TC 19136)
R. Salado and A. Salado
April2020Late filing penalty (R&TC 19131)
K. Blinkinsoph
April2020Estimation of income (R&TC 19087); Late-filing penalty (R&TC 19131)
K. Foster and S. Foster
April2020Federal adjustment; Statute of limitations on assessment (R&TC 19057); Accuracy-related penalty (IRC 6662; R&TC 19164)
E. Miller and C. Miller
April2020Determination of income and NOL amounts; Late filing penalty (R&TC 19131); Accuracy-related penalty (IRC 6662; R&TC 19164)
Salton Sea Ventures, Inc.
April2020Unreported sales of gasoline
MaxPatient
April2020Per shareholder S corp. late filing penalty (R&TC 19172.5); Estimated tax penalty (R&TC 19142); OTA jurisdiction (R&TC 19324)
Breen Enterprises, Inc
April2020Unreported taxable sales (bar and grill); Fraud penalty (R&TC 6485)
Irvine Cabinets Showroom Inc.
April2020Unreported taxable sales (cabinets); Construction contractors (Regulation 1521); Fraud penalty (R&TC 6485)
OMAG Automotive Machine, Inc.
April2020Unreported taxable sales (auto repairs)
S. Bachor
April2020Unreported taxable sales (fabricatioin labor); Construction contractors (Regulation 1521)
Ballaj
April2020Unreported taxable distributions of tobacco products (R&TC 30101, 30109, 30123, 30131.2)
AMG Care Collective
April2020Unreported taxable sales (cannabis); mailing requirements for notice of determination (R&TC 6486)
M.A.C. Cosmetics, Inc.
April2020Claim for refund requirement, "self-help" credits (R&TC 6902)
R. Lazof and V. Lazof
April2020Estimated tax penalty (R&TC 19136); Interest abatement
A. Canann and M. Canann
April2020Statute of limitations on claim for refund (R&TC 19306)
M.Kohl and V. Kohl
March2020Late-filing penalty (R&TC 19131); Demand penalty (R&TC 19133)
A. Antonio and M. Antonio
March2020Taxation of military retirement pay (IRC 72(t), 4974)
Time To Be Herd
March2020Liability for annual minimum LLC tax (R&TC 17941); Late payment penalty (R&TC 19132)
G. Huckleberry
March2020Disallowed IRC 1231 loss and charitable contribution carryover
A. Baez
March2020Demand penalty (R&TC 19133)
M. Davis and J. Hunter-Davis
March2020Distributive share loss versus capital loss; Partnership termination; Partnership liquidating distribution
H. Tahami
March2020Late filing penalty (R&TC 19131); Demand penalty (R&TC 19133)
Global Consultant Group LLC
March2020Liability for LLC tax (RTC 17941); Late payment penalty (R&TC 19132)
R. Briscoe
March2020Estimation of income (R&TC 19087); Late filing penalty (R&TC 19131)
H. Halwani
March2020Late filing penalty (R&TC 19131); Estimated tax penalty (R&TC 19136)
J. Beisner
March2020Filing status (R&TC 18521)
J. Davis
March2020California method for taxing part-year resident (R&TC 17041)
C. Post
March2020Federal adjustment (disallowed Schedule C deductions; omitted income)
M. Acosta
March2020Transferee liability of LLC member (RTC 19071-19074; Civ. Code 3439.01-3439.12)
G. Antoun and M. Antoun
March2020Late payment penalty (R&TC 19132)
B. Kline
March2020Unreported retirement distribution income (IRC 72)
M. Benbenist
March2020Late payment penalty (R&TC 19132); Estimated tax penalty (R&TC 19136); Interest abatement
T. Kilroy and K. Kilroy
March2020Late payment penalty (R&TC 19132); Estimated tax penalty (R&TC 19136); Interest abatement
S. Khan
March2020Suspension of statute of limitations while serving in combat zone (R&TC 18571; IRC 7508)
C. Head and Z. Feliciano
March2020Taxability of settlement award, personal physical injuries (IRC 104(a)); Late filing penalty (R&TC 19131); Accuracy-related penalty (R&TC 19164; IRC 6662)
A. Rhoads
March2020Late payment penalty (R&TC 19132)
A. Majors
March2020Innocent spouse (R&TC 18533(f), IRC 6015(f)
W. Appleyard
March2020Statute of limitations on claim for refund (R&TC 19036)
C. Hirigoyen
March2020Federal adjustment (unreported pension distribution)
W. Rocha
March2020Interest abatement (R&TC 19104; IRC 6404)
N. Frankfort and D. Frankfort
March2020Interest abatement
S. Monahan
March2020Statute of limitations on claim for refund (R&TC 19036)
R. Weeks and D. Yau
March2020Disallowed Schedule C deductions
J. Judd
March2020Head of household
C. Atherley
March2020Innocent spouse (R&TC 18533(f), IRC 6015(f)
K. Waligora
March2020Late filing penalty (R&TC 19131); Estimated tax penalty (R&TC 19136)
J. Gash
March2020Federal adjustment (unreported income)
F. Gonzalez and A. Gonzalez
February2020Federal adjustment
P. Hurst and J. Hurst
February2020Federal adjustment (disallowed Schedule E deductions); Accuracy-related penalty (R&TC 19164; IRC 6662); Late filing penalty (R&TC 19131)
M. Penner and W. Lee
February2020Late filing penalty (R&TC 19131)
D. Watts
February2020Head of household
Benemi Partners, L.P.
February2020Statute of limitations on claim for refund (R&TC 19036)
O. Nelson and M. Nelson
February2020Deductibility of police officer's unreimbursed business expenses (IRC 162, 274)
R. Alvarez
February2020Federal adjustment (disallowed Schedule A and C deductions)
N. Krautheim
February2020Innocent spouse (R&TC 18533(f), IRC 6015(f)
D. Lee
February2020Federal adjustment
C. Alexander
February2020Federal Adustment
D. Shmueli
February2020Statute of limitations on claim for refund (R&TC 19306); Equitable estoppel against FTB
R. Strom and H. Strom
February2020Federal Adustment
C. Munoz
February2020Unreported income
L. Thiede and M. Thiede
February2020Late payment penalty (R&TC 19132)
R. McAllister
February2020Interest deduction for qualified mortgage insurance (IRC 163)
R. Laidlaw and G. Laidlaw
February2020Late payment penalty (R&TC 19132)
L. Li
February2020Ability to change filing status (R&TC 18521)
A. Dakers
February2020California-source income of nonresident (Reg. 17951-4, 25136-2); Late filing penalty (R&TC 19131)
D. Drummond
February2020Collection of erroneous refund
M. Cruces and E. Cruces
February2020Taxability of health saving account
R. Merz
February2020Late filing penalty (R&TC 19131)
HMSS Investments
February2020Partnership late filing penalty (R&TC 19172)
7452 Romaine LP
February2020Partnership late filing penalty (R&TC 19172); Collection cost recovery fee
M. Donovan
February2020Residency
D.Tran and L. Nguyen
February2020Federal action; Interest abatement
M. Haeberli and T. Grown
February2020Statute of limitations on claim for refund (R&TC 19306); Estimated tax penalty R&TC 19142)
G. Morales-Collins
February2020Disallowed employee business expenses (IRC 162); Interest abatement
R. Rawls
February2020Statute of limitations on claim for refund (R&TC 19306)
T. Stelliga (estate of)
February2020Economic substance, charitable remainder unitrust (CRUT); Charitable contribution deduction (IRC 170); Noneconomic substance penalty (NEST, R&TC 19774); Interest-based penalty (R&TC 19777)
G. Gonzalez
February2020Federal adjustment
D. Hicks and J. Hicks
February2020Dishonored payment penalty (R&TC 19134, IRC 6657)
M. and K. Surdin
February2020Federal adjustment
PRT Consulting, Inc.
February2020Liability for minimum tax (R&TC 23153, 23802); Estimated tax penalty (R&TC 19142); S corp late filing penalty (R&TC 19172.5)
A. and E. Soltani
February2020Federal adjustment
T. McKee
February2020Federal adjustment
Priscilla's Gourmet Coffee, Inc.
January2020Relief of taxes, interest, and penalties (R&TC 6596, 6593.5)
E. Drori
January2020Responsible person liability (R&TC 6829); Timeliness of notice of determination

Errata Notices

Errata NoticeMonthYearCite
Errata Notice November 2019November20192019-OTA-381
Errata Notice August 2019August 20192019-OTA-180
2018-OTA-208
2019-OTA-181
Errata Notice June 2019June20192019-OTA-144
2019-OTA-136
2019-OTA-153
2019-OTA-151
2019-OTA-143
2019-OTA-154
2019-OTA-152
2019-OTA-126
2019-OTA-121
Errata Notice May 2019May20192019-OTA-101
2019-OTA-125
2019-OTA-116
2019-OTA-118
2019-OTA-112
2019-OTA-131
2019-OTA-130
2019-OTA-179P
Errata Notice April 2019April20192019-OTA-041P