Teleradiologist Wants Out of California Income Tax on Texas Work

A doctor told told a California appeals court that the state can’t tax any of a radiologist’s work performed from his home in Texas even if some of the images he interprets are from hospitals there.

Dr. Xavier Garcia-Rojas is challenging a trial court order adopting the California Franchise Tax Board’s interpretation that the state can tax part of his income because he was a sole proprietorship that could be combined with him to constitute a “unitary business.” That term refers to a group of businesses that is taxed as a single unit, and each state in which they operate ...