Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013

Sales and Use Tax Annotations

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Annotation 170.0014


170.0014 Nominee Lien. A taxpayer owes the Board $47,032 which consists of a determined liability for the period 10/1/90 to 12/31/93 and nonremittance returns filed in 1992 and 1993. The audit for the determined liability indicates that the audit findings were discussed with the taxpayer on May 20,1994, that the taxpayer had not filed a return for the fourth quarter 1993, and that the taxpayer was allowed several weeks to obtain additional information on questionable sales for resale. On April 25 and May 31, the taxpayer deeded real property at two separate locations to his son by quitclaim deed. The deeds stated that no consideration was paid for the transfer of the properties. The quitclaim deeds were recorded on April 28 and June 9 respectively. Based on the facts, the transfers of these two properties by the taxpayer to his son were made with actual intent to hinder, delay, or defraud the Board in the collection of the outstanding liability. Therefore, nominee liens should be recorded against these properties. (Civil Code section 3439.04.) 11/18/96.