Legal Question in Tax Law in California

California FTB

How can I get a straight answer?

I coordinated the production of an event in 04/05 in San Diego, CA I was there for 5 days. I wanted to bring my own workers but by CA law was not allowed to so I followed the law and hired union workers to unload trucks, operate audio-visual equipment and load trucks. This is required by California law. I was in CA for a total of 5 days, have not been back since (over 3 years now) I have received a request to file a corp tax return for 2005 or answer questions verifying why I do not feel I need to file a corp tax return. After answering the questionnaire I felt certain this would just go away, but for months the FTB has continued to ignore me and send invoices demanding $35,000.00 be paid for the sales I made while in CA.

The sales were made in Texas to a Texas/New York corporation. and no sales were made while in CA.

By California definition I am a foreign entity. The franchise tax is imposed in this state and is measured by the income of the corporation from California sources. I generated NO INCOME from CA sources.

QUESTION: Can someone make this go away? at a reasonable cost.


Asked on 6/23/08, 7:41 pm

3 Answers from Attorneys

Donald Field Donald L. Field, Jr., Attorney at Law

Re: California FTB

based on the facts in your question, it is likely that your corporation does not owe this tax to california. what it would cost to resolve this dispute will depend upon the administrative status of the audit and whether or not you filed a timely protest (normally a notice of proposed assessment would be sent by the ftb and the taxpayer has 60 days to protest the assessment).

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Answered on 6/24/08, 7:46 pm
Mark Muntean Mark Muntean, Attorney at Law

Re: California FTB

Yes. This is what I do.

You should also get a tax credit in Texas to the extent you pay in CA. Thus, you sould be taxed once. [email protected]

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Answered on 6/23/08, 7:54 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: California FTB

I can help with the red tape. $ 260/hr. Contact me directly.

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Answered on 6/23/08, 8:37 pm


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