The first few paragraphs of the Ninth Circuit’s opinion explain the setting: “Barry Bonds was a celebrity child who grew up in baseball locker rooms as he watched his father Bobby Bonds and his godfather, the legendary Willie Mays, compete in the Major Leagues. Barry Bonds was a phenomenal baseball player in his own right. […]
Wealth-Based Classification Contention To Bring Action Against City & County Unsuccessful.
Plaintiff brought an action against a city and county with respect to the impoundment of vehicles. Her complaint alleged she was a taxpayer under Code of Civil Procedure section 526a and had standing to sue because she had paid sales tax, gasoline tax, and water and sewage fees, but she admitted she had not paid […]
Fair Market Value Of Ritz Carlton Inflated By Tax Man.
The Ritz Carlton Half Moon Bay contends the county tax assessor inflated the value of the hotel by including $16,850,000 in nontaxable intangible assets when assessing its fair market value. The appellate court agreed with the hotel, concluding “the income method at issue here violated [Revenue & Taxation Code] section 110, subdivision (d), by failing […]
Consumer Protection Statutes May Not Be Used To Fight Tax Overcharges By Retailers.
In a four to three decision, the California Supreme Court held that California’s consumer protection statutes may not be utilized when a retailer charges tax on take-out coffee, which is contrary to law. The majority opinion states: “We conclude that the tax code provides the exclusive means by which plaintiffs’ dispute over the taxability of […]
Plaintiff Lacks The Corporate Capacity To Sue.
At a time when its corporate powers were suspended for failure to pay taxes, a corporation assigned its rights and interests to an entity. The assignee filed an action, and the trial court ordered the complaint stricken and the action dismissed. The appellate court agreed with the trial court that plaintiff lacked the capacity to sue. […]
MORTGAGE DEBT RELIEF ACT – SET TO EXPIRE DECEMBER 31, 2013 !
There are 30 days to go until January 1, 2014 when forgiven debt from the disposition of a principal residence – exempted from income tax since the Mortgage Debt Relief Act of 2007 went into effect, will again become taxable. This is not the first time this law has had to be revised for an extended […]
Athiest’s Case Reversed On The Issue Of Damages.
Plaintiff was placed on parole in 2007 after pleading no contest in a methamphetamine case. One of his parole conditions was that he attend and complete a 90-day residential drug treatment program. He advised parole and correctional officers he is an atheist, and requested placement in a non-religious program, but he was sent to a religious-based […]
Public Utilities Commission ( PUC ) Denies Partnership An Offset For Income Tax Purposes.
A company formed as a partnership which operates oil pipelines challenged ratesetting orders of the Public Utilities Commission [PUC]. The PUC decided the company is not entitled to an offset for income tax purposes. The company argued the PUC erroneously denied it a federal income tax allowance because it is a limited partnership instead of a […]
To Avoid An IRS Late Filing Penalty Can You Trust Your Accountant’s Advice About When Your Taxes Are Due?
Plaintiff was acting as the executor of an estate when he asked his accountant to apply for an extension of the deadline to file the estate-tax return from the Internal Revenue Service. The accountant told him the deadline had been extended for one year, when, in fact, it had only been extended for six months. When […]
Taxpayer Action Proves Under-Reporting Of Profits By Indian Tribes; Plaintiff Entitled To Fees.
A taxpayer action was brought against the California Gambling Control Commission and the California State Controller alleging they failed to discharge their mandatory duty to collect money derived from gambling owed to the state by various Indian tribes. It was determined the Indian casinos under-reported their net earnings by over $100,000,000, and that $12.8 million had […]