California - Trial court awards attorney fees, FTB’s assertion of commercial domicile not substantially justified

On June 14, 2013, a trial court ordered the California Franchise Tax Board to pay a taxpayer nearly $1.2 million in attorney fees regarding a twelve year matter concerning a corporation’s commercial domicile. The order serves as a good reminder to California taxpayers of the state’s persistent and sometime intrusive audit practices and the importance of documenting tax positions such as commercial domicile. [Daniel V, Inc., v. Franchise Tax Board, Los Angeles County Superior Court, No. BC457301 (6/14/13 hearing)]

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