March 5, 2013 – Holtz, Slavett & Drabkin is proud to announce that tax attorney and partner Gary Slavett successfully litigated a Franchise Tax Board income tax appeal before the State Board of Equalization.
The Franchise Tax Board issued a Notice of Proposed Assessment to our client proposing a capital gain from the sale of real property (plus penalties). While title to the real property was in the name of our client, our client merely held title for the benefit of a non-profit organization. A protest was filed and the Franchise Tax Board (“FTB”) issued a Notice of Action denying our protest. Despite the fact that our client was holding the property as a nominee, the FTB argued that our client was responsible for the capital gains tax because our client was on title and signed all purchase and sale documents. We filed an appeal with the State Board of Equalization. After the parties filed briefs, a hearing was held in Culver City before the five elected members of the State Board of Equalization (“SBE”). The members of the SBE, in a unanimous decision, held that our client was not liable for the capital gains tax and thus reversed the FTB’s assessment in full. In addition to holding that our client did not owe any additional taxes to the FTB, the SBE further ruled that our client was entitled to an additional deduction and thus entitled to a refund from the FTB.
Former IRS Attorneys at Holtz, Slavett & Drabkin are prepared to answer your questions about Franchise Tax Board assessments and appeals before the State Board of Equalization. You can reach us at (310) 550-6200.