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California Trial Court Denies FTB’s Motion to Vacate and Modify Judgment that Declared Technical Advice Memorandum 2022-01 and FTB...

A California trial court denied the Franchise Tax Board’s (FTB) motion to vacate and modify the judgment declaring FTB Technical Advice Memorandum (TAM) 2022-01 and FTB Publication 1050 invalid underground regulations adopted...more

Texas Court of Appeals Confirms Cost-of-Performance Method is Proper to Source Service Receipts

The Texas Court of Appeals agreed with Sirius XM Radio Inc.’s (“Sirius SM”) cost-of-performance (“COP”) method to determine the fair value of Sirius XM’s services performed in Texas.  Earlier in this litigation, the Texas...more

12/1/2022  /  Franchise Taxes , Texas

The California Franchise Tax Board Fails to Follow the Order of Its Market-Based Sourcing Cascading Rules

In the Appeal of Sheward, 2022-OTA-228P (May 25, 2022), the California Office of Tax Appeals (OTA) held the California Franchise Tax Board (FTB) failed to follow its own market-based sourcing apportionment regulation by...more

Industry Trade Association Sues California Franchise Tax Board Over “Radical” New Interpretation on Scope of Public Law 86-272...

The American Catalog Mailers Association (ACMA), which describes itself as the nation’s leading industry trade association advocating for catalog, online, direct mail, and other remote-selling merchants and their suppliers,...more

Texas Supreme Court Sides with Sirius XM’s “Straightforward” Interpretation of Service Receipt Sourcing Statute

The Texas Supreme Court issued a decision holding that service receipts are sourced to the physical location of the taxpayer’s personnel or equipment that performed the service for which the customer paid. The decision...more

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