Weekly Round-Up: California FTB’s Chief Counsel Dishes on the Gray Areas of Taxation in the Golden State


In the absence of federal tax reform, efforts to remove some of the complexities or anomalies in California tax law have become more complicated by the adoption of Proposition 26 in 2010, Jozel Brunett Chief Counsel at California's Franchise Tax Board said in response to a question on whether the conditions are right for California to simplify its state's tax system.

Brunett's comments were part of a larger interview in this week's issue of the Bloomberg BNA Weekly State Tax Report in which she spoke to Walt Nagel, Don Griswold, and Jeremy Abrams, all with Crowell and Moring's state tax team, about Interested Parties Meetings, administrative settlements, the state's extreme penalty provisions and changes at the FTB.

Burnett also addressed high profile FTB litigation currently in the pipeline including Comcon Production Services I v. FTB, dealing with the the business/non-business income and unitary business area, and Bakersfield Mall and CA-Centerside II, dealing with the constitutionality of the LLC fee.

Also in the interview, Burnett expressed doubts that California will follow other states in using third-party, contract auditors, compensated under a contingent-fee arrangement, in the unclaimed property arena and transfer-pricing audits.

Burnett's complete interview with Crowell and Moring's state tax team is available here.

In other developments…

State Tax Revenues Close in on Milestone But Have a Long Road Ahead , according to the Center on Budget and Policy Priorities

DOR Expedites Abatements for Vendors Who Paid Sales Tax on Computer and Software Services , by OpenDOR, the official blog of the Massachusetts Department of Revenue

Outcome of Ballot Measures in the Recent General Election: Impact on State Budgets , by the National Association of State Budget Officers

Sutherland SALT Shaker releases its October 2013 Digest

Compiled by Priya D. Nair
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