March 2016

The Franchise Tax Board audited our clients and claimed the Schedule C Self-Employment was a “hobby” and thus the losses claimed on the original returns were not allowable. The FTB sought over $748,000 in additional taxes.Our firm appealed the auditor’s findings and ultimately settled with the FTB, agreeing to pay a little over $97,000 to resolve all tax issues. As a result, our clients saved over $650,000 through the appeals process.