Teleradiologist’s California Work Taxable There, State Argues

California may tax work a Texas-based radiologist performs that benefits hospitals and patients in California, the state told an appeals court.

Dr. Xavier Garcia-Rojas worked for a California-based company and used its platform to read scans from hospitals there, which required him to have a California medical license and malpractice insurance, the state Franchise Tax Board argued in a response brief obtained Thursday. The state has a right to tax any sales where the benefits were received in California, the agency told the California Court of Appeal, First Appellate District.

Income tax liability has become increasingly complicated by the rise ...