California OTA Partially Grants Taxpayer’s Appeal Against FTB’s Tax Assessment

The California Office of Tax Appeals (OTA) partially granted the taxpayer’s appeal against the Franchise Tax Board (FTB)’s decision. The taxpayer appealed an action by the FTB proposing an assessment of tax, penalties, and fees. The background is that FTB obtained information that the taxpayer filed a federal tax return using a California address and had income reported to California, so it issued a demand for the taxpayer to file a California return or explain why it was not required. After the taxpayer failed to respond, the FTB issued a proposed assessment estimating the taxpayer’s income based on information returns. ...