Approved 2001 Minutes - Tuesday, January 23, 2001


Tuesday January 23, 2001

The Board met at its offices at 5901 Green Valley Circle, Culver City, at 9:05 a.m. with Chairman Parrish, Vice Chairman Chiang, Mr. Klehs, Mr. Andal and Dr. Connell present.

ANNOUNCEMENT OF CLOSED SESSION

The Board recessed at 9:05 a.m. and reconvened immediately in closed session with Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal, and Dr. Connell.

CLOSED SESSION

The Board met to discuss personnel matters and pending litigation.

The Board recessed at 9:45 a.m. and reconvened immediately in open

session with Mr. Parrish, Mr. Andal, and Ms. Mandel present on behalf of Dr. Connell in accordance with Government Code Section 7.9.

LEGAL APPEALS MATTERS

The Board deferred consideration of the following matters: Brittni-Yen

Nguyen & Khiet Huy Nguyen, SR EA 99-432423; 89002251880 and Salvatore Dinunzio, SB UT 81-012927; 36864.

With respect to the Legal Appeals Matters Consent Agenda, upon a single motion of Mr. Andal, seconded by Ms. Mandel and unanimously carried, Mr. Parrish, Mr. Andal and Ms. Mandel voting yes, Mr. Chiang and Mr. Klehs absent, the Board made the following orders:

Thiem Graphics, Inc., SR FH 25-755047; 89000547110

1-1-94 to 12-31-96, $26,081.23 Tax

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeals Section.

Universal Mattress, Inc., SR AB 97-485941; 15898

1-30-91 to 6-30-98, $81,925.09 Tax, $ 8,192.54 Penalty, Failure to File

$40, 962.59 Penalty, Operation without a Permit

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeals Section.

Jiwanjit Singh Palaha, SR AC 99-144196; 89002121400

7-1-94 to 6-30-97, $00.00 Tax, $2,033.80 Penalty, Negligence

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeals Section.

Piage Art Stone, Inc., SR EA 99-397483; 89002233620

1-1-95 to 12-31-97, $52,255.86 Tax, $3,483.73 Penalty, Negligence

$1,741.86 Penalty, Failure to File

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeal Section.

Brittni-Yen Nguyen & Khiet Huy Nguyen, SR EA 99-432423; 89002251880

10-1-94 to 6-30-97, $25,104.88 Tax, $2,627.01 Penalty, Negligence

Considered by the Board:Hearing Notice Sent – No Response

Action: The Board deferred consideration of this matter.

Frank Najor, CR ET 02-001223; 89000005100

Hanna Yacob Shayota, CR ET 02-001223; 89000005110

Walid Jamil, CR ET 02-001223; 89000005120

3-17-95 to 3-31-97, $68,438.90 Tax, $ 6,843.89 Penalty, Failure to File

$17,109.73 Penalty, Fraud

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeals Section.

U.S. Natural Resources, Inc., SS OH 30-679113-010; 89000856490

7-1-94 to 6-30-97, $00.00 Tax

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeals Section.

Hanmar Corporation, SR AP 17-631095; 33473

10-1-95 to 9-30-98, $5,232.15 Tax

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeals Section.

F.J. Alexander, Medical Rental Corporation, SR AS 18-705123; 89000240590

1-1-94 to 12-31-96, $347,268.15 Tax

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeals Section.

Darren F. Garcia, SR EH 52-006352-010; 89000965940

4-1-96 to 8-31-97, $61,648.86 Tax, $00.00 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeals Section.

Big Bear Boat Landings, Inc., SR EH 23-638744; 89000400750, -760

7-1-94 to 12-31-97, $8,957.17 Tax, $851.80 Penalty, Negligence

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by Appeals Section.

Salvatore Dinunzio, SB UT 81-012927; 36864

5-31-98, $5,016.88 Tax

Considered by the Board:Hearing Notice Sent – No Response

Action: The Board deferred consideration of this matter.

Oriental Products, Inc., SR AA 11-716672; 17005

7-1-95 to 6-30-98, $15,935.82 Tax, $1,593.60 Penalty, Negligence

Considered by the Board:Hearing Notice Sent –Appearance Waived

Action: Redetermine as recommended by Appeals Section.

Claremont Camera & Video, Inc., SR AP 99-406942; 89002238410

1-1-95 to 9-30-97, $6,059.78 Tax, $00.00 Penalty

Considered by the Board:Hearing Notice Sent –Appearance Waived

Action: Redetermine as recommended by Appeals Section.

Automatic Solar Covers, Inc., SZ AP 16-669477; 89000185930

1-1-82 to 6-30-86, $00.00 Tax

Poolsaver, Inc., SZ AP 17-773874; 89000213800

1-1-82 to 8-18-88, $00.00 Tax

Considered by the Board:Hearing Request Withdrawn

Action: Redetermine as recommended by Appeals Section.

Eight Ball Enterprises Inc., et al., SR AP 99-122927; 89002112320

10-1-93 to 12-31-96, $00.00 Tax, $00.00 Penalty, Negligence

Considered by the Board:Hearing Request Withdrawn

Action: Redetermine as recommended by Appeal Section.

Chhotu Jafferali Hirani, SR DH 99-348467-010; 89002211910

9-16-93 to 8-31-95, $13,943.80 Tax, $00.00 Penalty

Considered by the Board:Hearing Request Withdrawn

Action: Redetermine as recommended by Appeal Section.

FRANCHISE AND INCOME TAX MATTERS, CONSENT

The Board deferred consideration of the following matters: Innovations

Consulting International, Inc., 47685 and Susan L. Lindsey, 52359.

With respect to the Franchise and Income Tax Matters, Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Parish and unanimously carried, Mr. Parrish, Mr. Andal and Ms. Mandel voting yes, Mr. Chiang and Mr. Klehs absent, the Board made the following orders:

Paul & Bettyjo Arnold, 61139

1996, $763.68 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

George A. & Lillian Bernath, 57147

1996, $652.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Tony Bui, 48855

1995, $1,763.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

James D. Campbell, 61146

1995, $3,691.00 Assessment

1996, $2,612.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Jerry A. & Sally Carter, 53053

1995, $1,016.00 Assessment, $436.00 Penalty, Delinquent

Action: Sustain the action of the Franchise Tax Board.

Ronald E. Castle, 34408

1992, $4,990.00 Assessment, $1,230.00 Penalty, Late Filing

Action: Sustain the action of the Franchise Tax Board.

Joyce T. & Phillip D. Clark, 42866

1996, $947.92 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Gerald D’Agostino, 36485

1995, $758.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Timothy R. & Doreen Denlay, 59946

1996, $1,746.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Bernard L. Fleitman, 56609

1995, $4,981.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Mitchell Freifeld, 60574

1992, $1.00 or more Assessment

Action: Sustain the action of the Franchise Tax Board.

Daniel L. Glass, 52530

1995, $1.00 or more Assessment

Action: Sustain the action of the Franchise Tax Board.

Edwin M. & Regina C. Hamlin, 34343

1993, $7,162.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Daniel A. Howells, 49009

1995, $772.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Allen N. Huckaby, 62137

1992, $509.00 Assessment

1993, $401.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Alvin S. & Ursula M. Huddleston, 83323

1995, $873.86 Assessment

Action: Sustain the action of the Franchise Tax Board.

Sandra Kay Hunter, 77966

1988, $227.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Innovations Consulting International, Inc., 47685

1996, $1,725.06 Assessment, $2,944.52 Penalties

Action: The Board deferred consideration of this matter.

John’s Professional Aid, Inc., 61425

1996, $1,276.59 Claim for Refund

1997, $1,172.52 Claim for Refund

1998, $ 955.92 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Michael M. Johnson, 61417

1995, $749.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Scott Kim Kawasaki, 61414

1996, $392.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Gerald W. Lane, 49674

1996, $730.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Erin Hong-Dao Lang & Joyce Shuan Lee, 40795

1995, $3,198.30 Assessment

Action: Sustain the action of the Franchise Tax Board.

Michael Lannoy, 49676

1998, $652.38 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Lance M. Lefmann, 49821

1998, $61.37 Claim for Refund

Action: Reverse the action of the Franchise Tax Board.

Susan L. Lindsey, 52359

1993, $392.00 Assessment

Action: The Board deferred consideration of this matter.

Lawrence L. Mandeville, 49683

1996, $644.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Alina M. Lopez Marin, 56352

1996, $788.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Ronald Martinez, 49685

1995, $837.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Spencer K. & Sheryl Meggs, 78225

1994, $1,208.99 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

John and Yolanda Montoya, 53034

1996, $843.79 Assessment

Action: Sustain the action of the Franchise Tax Board.

David A. Moore, 40828

1998, $650.00 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

James D. Murchison, Jr., 40731

1998, $1.00 or more Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Susan E. Murphy, 58874

1996, $80.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Steven O’Donnell, 31094

1997, $1,243.00 Assessment, $621.50 Penalty, Delinquent

$621.50 Penalty, Demand

Action: Sustain the action of the Franchise Tax Board and impose a $750.00

frivolous appeal penalty.

Robert G. Padrick, 52431

1993, $3,221.66 Claim for Refund

1995, $2,089.60 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Todd W. Rogers, 58931

1996, $34.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Richard A. San Filippo, 59089

1996, $119.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Mary B. Scott, 28641

1995, $479.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Adrian L. Smedley, 59159

1996, $614.00 Assessment

Action: Modify the action of the Franchise Tax Board.

Roy Y. & Agnita Steffensen, 49595

1995, $466.07 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

John A. Storoschuck, Jr., 37443

1995, $379.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Frank William Stranzl, 37444

1995, $1,421.02 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Joseph R. Tague, 41866

1995, $525.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Audie Tagumasi, 37445

1997, $888.00 Assessment

Action: Reverse the action of the Franchise Tax Board.

Evangeline V. Terrill, 37446

1997, $397.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Curtis Thompson, 57198

1995, $187.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

E.H. & Jean C. Van O’Linda, 61494

1978, $300.50 Assessment

1979, $353.00 Assessment

1980, $350.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Augustine Vasquez, 28645

1997, $238.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Steven Vickers, 41870

1997, $1.00 or more Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Roger & Angela Welch, 42993

1995, $1.00 or more Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Robert White, 41871

1997, $1.00 or more Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Linda F. Wright, 37457

1995, $734.00 Assessment

Action: Sustain the action of the Franchise Tax Board.

Kwok L. Yun, 76276

1996, $2,006.16 Claim for Refund

Action: Sustain the action of the Franchise Tax Board.

Gracio Fabris, 99A-0412, 17195

1994, $1,465.00 Assessment

Action: Deny the petition for rehearing.

Barney R. Freasier, Jr. & Elizabeth Hutten, 99A-0152; 89002467630

1993, $28,830.00 Tax, $6,740.29 Penalty

Action: Deny the petition for rehearing.

Ronald L. Meldrum, 28623

1996, $1,650.00 Tax, $316.60 Penalty, Accuracy

$395.75 Penalty, Demand

Action: Deny the petition for rehearing.

Henry E. Newman, Jr., 29500

1996, $ 677.26 Assessment, $169.32 Penalty, Delinquent

$500.00 Penalty, Frivolous Appeal

1997, $1,852.00 Assessment, $463.00 Penalty, Delinquent

$477.50 Penalty, Failure to File

$500.00 Penalty. Frivolous Appeal

Action: Deny the petition for rehearing.

Les R. Reid, 30974

1997, $1,753.00 Assessment, $438.25 Penalty, Delinquent

$479.75 Penalty, Demand

Action: Deny the petition for rehearing.

Mr. Klehs and Mr. Chiang entered the Boardroom.

HOMEOWNER AND RENTER PROPERTY TAX ASSISTANCE MATTERS, CONSENT

With respect to the Homeowner and Renter Property Tax Assistance Matters, Consent Agenda, upon a single motion of Ms. Mandel, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Chiang not participating, the Board made the following orders:

Rita Ann Abilez, 79034

1996, $77.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Victor M. Becerra, 53054

1999, $11.86 Claim for Credit

Action: Reverse the action of the Franchise Tax Board.

Mikhail Blumkin, 58048

1998, $162.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

William Brasseur, 75850

1999, $240.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Deeana S. Bright, 79046

1998, $1.00 or more Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Joseph Bryant, Jr., 40697

1999, $261.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Mardene Butler, 40700

1998, $240.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Canwar Childs, 63322

1998, $162.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Mashala J. Dave, 75852

1999, $240.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Aitmease Edwards, 57612

1999, $1.00 or more Claim for Credit

Action: Reverse the action of the Franchise Tax Board.

Zinaida Garber, 78837

1996, $102.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

William Harper, Jr., 83835

1997, $15.00 Claim for Credit

1998, $15.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Maxine Kerr, 77702

1997, $192.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Jane A. Leffler, 78258

1999, $25.63 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Valleria J. Mitchell, 58941

1997, $61.13 Claim for Credit

1998, $ 1.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Pamela J. Pole Nash, 79965

1999, $81.25 Claim for Credit

Action: Reverse the action of the Franchise Tax Board.

Edward J. Newby, 77704

1997, $ 92.50 Claim for Credit

1998, $102.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Sylvia Rose-Trulock, 77707

1996, $102.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Russell W. Severs, 50944

1999, $21.38 Claim for Credit

Action: Reverse the action of the Franchise Tax Board.

Verna Sherr, 62271

1999, $173.68 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Harriet I. Spichtig, 51719

1999, $35.75 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Harry Thompson, 78060

1997, $147.50 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Harry Thompson, 76061

1998, $1.00 or more Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

Charles C. Willis, 51733

1999, $184.00 Claim for Credit

Action: Sustain the action of the Franchise Tax Board.

SALES AND USE TAX MATTERS, REDETERMINATIONS AND DENIALS OF CLAIMS FOR REFUNDS, CONSENT

With respect to the Sales and Use Tax Matters, Redeterminations and Denials of Claims for Refund, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Chiang not participating the Board made the following orders:

Sanford Studios, SR AA 014-686574; 89000114220

10-1-94 to 9-30-97, $56,482.26

Action: Redetermine as recommended by staff.

Ultra Boats Inc., SR APA 023-896880; 89000431260

9-1-91 to 11-9-93, $879,498.84

Action: Redetermine as recommended by staff.

Waste Management Collection/Recycling, SR JH 027-783313; 15205

7-1-94 to 12-31-97, $81,555.95

Action: Redetermine as recommended by staff.

Wells Fargo Financial Leasing, Inc., SR S OHA 030-634742; 29294

4-1-94 to 3-31-97, $52,207.66

Action: Redetermine as recommended by staff.

Pines Trailer Corporation, SR EH 030-688120; 89000868690

10-1-92 to 12-31-96, $60,256.58

Action: Redetermine as recommended by staff.

Executive Charters, Inc., SP H UT 084-007509; 88165

7-22-98, $582,025.00

Action: Redetermine as recommended by staff.

Rotor King, SP H UT 084-013850; 93602

8-20-99, $68,199.98

Action: Redetermine as recommended by staff.

Bystronic Inc., SC OHB 097-057582; 89002046930

1-1-94 to 12-31-97, $252,184.44

Action: Redetermine as recommended by staff.

Optical Gaging Products Inc., SC OHB 097-124550; 19515

4-1-90 to 6-30-97, $64,168.50

Action: Redetermine as recommended by staff.

Hollywood Entertainment Corporation, SR Y OHA 099-395490; 42314

10-1-94 o 9-30-97, $116,466.66

Action: Redetermine as recommended by staff.

Waste Management of California Inc., SR EHC 099-674442; 16052

1-1-95 to 12-31-97, $230,549.09

Action: Redetermine as recommended by staff.

J.I.T. Steel Inc., SR ARF 099-746506; 15703

1-1-96 to 12-31-98, $104,953.41

Action: Redetermine as recommended by staff.

Dresser Industries, Inc., SR Z OHC 030-608771; 89000809190

1-1-93 to 12-31-96, $73,569.01

Action: Deny claim for refund as recommended by staff.

SALES AND USE TAX MATTERS, CREDITS, CANCELLATIONS AND REFUNDS, CONSENT

The Board deferred consideration on the following matters: Metabolife

International, Inc., SR FH 099-751077, 94446.

With respect to the Sales and Use Tax Matters, Credits, Cancellations and Refunds, Consent Agenda, upon a single motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, Mr. Chiang not participating, the Board made the following orders:

Paradise Bakery Inc., SR Y KH 025-823160; 98412

10-1-98 to 10-13-98, $54,960.53

Action: Approve credit and cancellation as recommended by staff.

Securities Software & Consulting, SC OHB 030-703962

10-1-95 to 9-30-98, $129,332.94

Action: Approve credit and cancellation as recommended by staff

Marion Knight, SB G UT 082-668913, 97621

6-18-96, $222,413.04

Action: Approve credit and cancellation as recommended by staff.

Intellution Inc., SC OHB 099-151439; 97852

1-1-95 to 12-31-97, $63,152.55

Action: Approve credit and cancellation as recommended by staff

Printronix Inc., SR EAA 012-640462; 79585

10-1-96 to 3-31-00, $139,160.11

Action: Grant refund as recommended by staff.

JSJ Printing Corporation, SR Y AB 014-061858; 52275

10-1-96 to 12-31-99, $113,265.72

Action: Grant refund as recommended by staff.

Walters Wholesale Electric Company, SR Y AB 016-087458; 94437

12-26-96 to 12-25-99, $73,700.80

Action: Grant refund as recommended by staff.

Richter Manufacturing Corporation, SR Y AP 017-607630; 52658

7-1-95 to 4-28-98, $92,810.20

Action: Grant refund as recommended by staff.

King Star Computer Inc., SR GH 021-852479; 79089

7-1-99 to 9-30-99, $119,767.73

Action: Grant refund as recommended by staff.

Fresno Truck Center, SR ARH 022-693929; 89000365250

4-1-94 to 3-31-97, $63,650.62

Action: Grant refund as recommended by staff.

Sacramento A-One Door, SR Z KH 028-051839; 97721

4-1-97 to 6-30-00, $659,545.70

Action: Grant refund as recommended by staff.

Pro Petroleum Inc., SR S OHC 030-690814; 83243

1-1-00 to 9-30-00, $156,069.14

Action: Grant refund as recommended by staff.

LCI Holdings Inc., SR Y OHB 030-691690; 57215

7-1-96 to 12-31-99, $346,880.02

Action: Grant refund as recommended by staff.

John Treffers, SB I UT 081-012992; 98551

4-29-93, $76,347.11

Action: Grant refund as recommended by staff.

Taylor Family Trust Dated 3-10-92, SB G UT 084-0124017; 84414

4-5-00, $111,482.32

Action: Grant refund as recommended by staff.

Workstations International Inc., SR S OHA 097-172756; 52693

10-1-98 to 9-30-99, $50,482.23

Action: Grant refund as recommended by staff.

Minnesota Mining & Manufacturing Company, SR Z OHA 098-002611; 98070

1-1-95 to 12-31-97, $734,348.49

Action: Grant refund as recommended by staff.

Eagle Energy, Inc., SR Y AR 099-132650; 57263

10-1-95 to 9-30-98, $82,965.82

Action: Grant refund as recommended by staff.

P-COM, Inc., SR GH 099-240345; 37328

7-1-96 to 9-30-96, $64,541.00

Action: Grant refund as recommended by staff.

Metabolife International, Inc., SR FH 099-751077, 94446

4-1-97 to 12-31-97, $99,225.69

Action: The Board deferred consideration of this matter.

FRANCHISE & INCOME TAX MATTERS, ADJUDICATORY

Leonard Jaffe, 30751

1991, $12,390.00 Assessment

1992, $ 2,182.00 Assessment

Submitted for Decision:December 14, 2000

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Action: Upon motion of Ms. Mandel, seconded by Mr. Andal and duly carried, Mr. Parrish, Mr. Andal and Ms. Mandel voting yes, Mr. Chiang and Mr. Klehs voting no, the Board moved to grant the petition without a rehearing, and amend the Board’s decision and order of September 14, 2000, to state that appellant’s outside basis in the partnership for these years includes $180,000.00 due to appellant’s 15 percent share of the $30,000.00 per well estimated plugging and capping liability for the 40 wells that were abandoned at the time he acquired his partnership interest.

SENIOR CITIZENS HOMEOWNER & RENTER ASSISTANCE HEARING

Vita McNair, 79958

1997, $183.34 Claim for Credit

For Appellant: No Appearance
For Franchise Tax Board: Suzanne Small, Tax Counsel

Action: The Board took no action.

FRANCHISE AND INCOME TAXES HEARINGS

Frances Stearn-Trautloff, 49546

1997, $716.00 Assessment

For Appellant: Robert C. Martin, Enrolled Agent
For Franchise Tax Board: Jozel Brunett, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue:Whether appellant has established that she meets the requirements to "not be considered as married" under IRC Section 7703 and thus entitled to use head of household filing status for 1997. (Specifically, whether appellant has established that she provided over one-half of the cost of maintaining her household. And, whether appellant has established that her household was separate from her mother’s (even though appellant lived in her mother’s house) so that she need not provide information on the total costs to maintain this house).

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and duly carried, Mr. Parrish, Mr. Klehs and Ms. Mandel voting yes, Mr. Andal voting no, Mr. Chiang passing, the Board ordered that the appeal be granted.

Timothy J. Bettner, 49347, 51507

1991, $1,429.01 Claim for Refund

1997, $ 918.00 Assessment

For Appellant: Timothy Bettner
For Franchise Tax Board: Jozel Brunett, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether res judicata bars appellant’s claim for refund for tax year 1991.

Whether appellant is entitled to use head of household fling status for 1997 when his qualifying individual is an unrelated individual (former spouse).

Whether a penalty should be imposed for bringing a frivolous or groundless appeal (appellant having brought eight previous appeals on the same set of facts and using the same arguments).

Appellant’s Exhibit: Personal income tax returns and supporting documentation (Exhibit 1.9)

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the action of the Franchise Tax Board be sustained.

Upon motion of Mr. Andal, seconded by Mr. Klehs and duly carried, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes and Mr. Parrish and Mr. Chiang voting no, the Board ordered a $750 frivolous appeal penalty be imposed.

Exhibits to these Minutes are incorporated by reference.

Chas E. Lewis, Inc. 61155

1992, $71.81 Claim for Refund

1998, $46.07 Claim for Refund

For Appellant: Stanley Lewis, President
For Franchise Tax Board: Suzanne Small, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether appellant has shown that respondent improperly imposed penalties for the underpayment of estimated tax.

Whether appellant has shown that respondent improperly imposed penalties for the late payment of tax.

Whether appellant has shown that it is entitled to a refund of interest.

Respondent’s Exhibit:Chronology of Events (Exhibit 1.10)

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and duly carried, Mr. Parrish, Mr. Klehs, and Mr. Andal voting yes, Mr. Chiang voting no and Ms. Mandel abstaining, the Board ordered that the claim for refund be granted.

John & Gwendolyn Schafer, 49495

1983, $2,347.00 Claim for Refund

1985, $1,783.00 Claim for Refund

For Appellant: Appearance Waived
For Franchise Tax Board: Cynthia Kent, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether appellants have shown that their claims for refund are not barred by the applicable statute of limitations.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the action of the Franchise Tax Board be sustained.

Thomas J. Gumina, 96R-0347; 89002462770

1983, $4,131.00 Claim for Refund

For Appellant: Thomas J. Gumina
For Franchise Tax Board: Jozel Brunett, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether appellant has met his burden to prove error in the proposed assessment, or the federal action on which it is based.

Whether the proposed assessment was issued prior to expiration of the applicable statute of limitations.

Whether interest should be abated.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the action of the Franchise Tax Board be sustained. The Board also directed staff to provide a generous payment plan.

Max Brenner, 57861

1991, $80,223.00 Assessment

For Appellant: No appearance
For Franchise Tax Board: Renel Sapiandante, Tax Counsel

Action: The Board took no action.

William H. & Judith T. Lively, 58925

1985, $ 5,781.00 Assessment, $7,061.51 Penalty

1986, $ 5,397.00 Assessment, $5,936.95 Penalty

1987, $ 7,399.00 Assessment, $7,295.79 Penalty

1988, $ 7,652.00 Assessment, $2,295.60 Penalty

1989, $ 8,465.00 Assessment, $2,538.50 Penalty

1990, $ 9,309.00 Assessment, $4,189.05 Penalty

1991, $10,761.00 Assessment, $4,842.45 Penalty

1992, $ 5,998.00 Assessment, $2,699.10 Penalty

1993, $ 2,998.00 Assessment, $ 599.60 Penalty

For Appellant: G. G. Bauman, Attorney
For Franchise Tax Board: Ken E. Kinyon, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue:Whether appellants were residents of California during the appeal years.

Respondent’s Exhibit: Miscellaneous documents (Exhibit 1.11)

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the appeal be submitted for decision.

Jack P. & Laura C, Dangermond, 49352

1994, $37,741.00 Claim for Refund

For Appellant: Appearance Waived
For Franchise Tax Board: Cynthia Kent, Tax Counsel

Action: The Board took no action.

Fremont General Corporation, 27969

1982, $526,796.00 Assessment

1983, $517,441.00 Assessment

1984, $253,482.00 Assessment

1985 $648,463.00 Assessment

For Appellant: No Appearance
For Franchise Tax Board: Craig Swieso, Counsel

Action: The Board took no action.

Irwin & Shirley Lachman, 32939

1991, $182,781.00 Assessment, $36,556.20 Penalty

For Appellant: No Appearance
For Franchise Tax Board: George McLaughlin, Tax Counsel

Action: The Board took no action.

FINAL ACTION ON APPEALS HEARD JANUARY 23, 2001

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the appeal of William H. & Judith T. Lively, 58925, be denied.

Mr. Klehs stated for the record that he would have voted with the majority

on the Legal Appeals Matters, Consent Agenda and the Franchise and Income Tax Matters, Consent Agenda.

Mr. Chiang stated for the record that he would have voted with the

majority on the Legal Appeals Matters, Consent Agenda and would not have participated in the Franchise and Income Tax Matters, Consent Agenda.

The Board recessed at 11:05 a.m. and reconvened at 1:35 p.m. with Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel present.

CORPORATE FRANCHISE AND PERSONAL INCOME TAX HEARINGS

Yukuo & Akiko Takenaka, 61542

1990, $ 24,823.00 Assessment, N/A Penalty

1993, $412,811.00 Assessment, $82,562.20 Penalty

1994, $ 705.00 Assessment, $ 141.00 Penalty

For Appellant: Richard A. Miller, Attorney
For Franchise Tax Board: Ann Hoover, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether the amount realized from the sale of appellant’s partnership interest in World Resources Company, L.P. (WRC), includes relief from partnership liabilities of $5,262,970.00.

Whether respondent is bound by determinations of the Internal Revenue Service (IRS) for the same tax year.

Whether appellant established reasonable cause sufficient to abate the accuracy-relayed penalty for negligence for 1993 and 1994.

Respondent’s Exhibit:Income Tax Law (Exhibit 1.12)

Action: Upon motion of Mr. Chiang, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the appeal be submitted for decision.

John C. Sopp & Terry McKnight, 99A-0095; 89002458580

1985, $1,459.00 Assessment

1987, $ 952.00 Assessment

1990, $ 790.00 Assessment

For Appellant: Ben Maese, CPA
Terry McKnight
For Franchise Tax Board: Bruce Langston, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether appellants have met their burden to prove error in the proposed assessments, or the underlying federal actions.

Whether the proposed assessments can be eliminated or mitigated based on a federal offer in compromise that was accepted by the Internal Revenue Service.

Whether the claim of right doctrine can be applied as to the appealed deficiencies, relative to income appellants reported in other years, and their loss of invested capital.

Appellant’s Exhibit: Tax Returns (Exhibit 1.13)

Respondent’s Exhibit: Notice of Additional Tax (Exhibit 1.14)

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the appeal be submitted for decision, granting the appellant 30 days to provide a declaration, the Franchise Tax Board 30 days to review the declaration and any other submissions, and the Appeals Section 30 days thereafter to bring the matter back to the Board with a final recommendation.

James H. & M. B. DeCordova, 33840

1989, $12,583.00 Assessment

1990, $ 4,868.00 Assessment

For Appellant: John B. Barriage, Counsel
For Franchise Tax Board: Suzanne Small, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether appellants have established that respondent was in error in denying deductions for interest, taxes, and depreciation with respect to rental housing for which a Notice of Noncompliance (Substandard Rental Housing) had been issued.

Whether the issue of "proper notice" by the San Diego Building Inspection Department should be decided by the Board

Appellant’s Exhibit:Grant Deed (Exhibit 1.15)

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the appeal be submitted for decision.

BUSINESS TAXES APPEALS HEARINGS

Makram & Maureen Hanna, TK MT 44-039482; 17606

1-1-91 to 9-30-98, $103,689.42 Tax, $00.00 Penalty

For Petitioner: Makram Hanna
Maureen Hanna
For Sales and Use Tax Department: Janet Vining, Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether petitioner’s allegation that the Board did not give adequate notice of the requirement to obtain an underground storage tank account number warrants relief from the fees.

Whether petitioner has proven that it did not begin storing fuel in the underground storage tanks until September 1991.

Action: (Motion expunged.)

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously

carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Esteban Amilcar Orellana, SR AR 99-265875; 89002174420, -410

4-1-93 to 6-30-95, $4,89.95 Tax, $489.95 Penalty, Negligence

For Petitioner: Esteban Amilcar Orellana
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether audited taxable sales were established in accordance with the facts.

Whether additional allowance for self-consumption is warranted.

Whether relief from the negligence penalty is warranted.

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the negligence penalty be deleted.

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the remainder of the petition be redetermined as recommended by the Appeals Section.

Wageh Daoud Ishak, SR AP 99-207233; 89002147770

1-1-94 to 12-14-96, $26,561.76 Tax, $2,714.83 Penalty, Negligence

For Petitioner: Thomas Brookhouzen, Representative
Wageh Daoud Ishak
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether the understatement of taxable sales was established in accordance with the facts.

Whether relief from the negligence penalty is warranted.

Action: Upon motion of Mr. Andal, seconded by Mr. Parish and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as to revised staff recommendation with respect to the cigarette mark-up.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the negligence penalty be deleted.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the remainder of the petition be redetermined as recommended by the Appeals Section.

Board recessed at 3:15 p.m. and reconvened at 3:20 p.m. with Mr. Parrish,

Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel present.

FINAL ACTION ON APPEALS HEARD JANUARY 23, 2001

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the appeal of Yukuo & Akiko Takenaka, 61542, be denied.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the appeal of James H. & M. B. DeCordova, 33840, be denied.

FINAL ACTION ON PETITIONS HEARD JANUARY 23, 2001

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel voting yes, the Board ordered that the petition of Makram & Maureen Hanna, TK MT 44-039482; 17606, be redetermined with adjustments.

ANNOUNCEMENT OF CLOSED SESSION [AA]

The Board recessed at 3:30 p.m. and reconvened immediately in closed session with Mr. Parrish, Mr. Chiang, Mr. Klehs, Mr. Andal and Ms. Mandel present.

CLOSED SESSION

The Board met to discuss pending litigation.

The Board recessed at 4:15 p.m. and reconvened immediately in open

session with Mr. Parrish, Mr. Chiang and Mr. Klehs present.

CORPORATE FRANCHISE AND PERSONAL INCOME TAXES HEARING

Manuel Lujan, 58827

1995, $258.00 Assessment, $51.60 Penalty

For Appellant: No appearance
For Franchise Tax Board: Suzanne Small, Tax Counsel

Contribution Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues:Whether appellant has met his burden to prove error in the proposed assessment, or the federal action that it is based on.

Whether appellant has established reasonable cause for abatement of the accuracy-related penalty.

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Chiang, and Mr. Klehs voting yes, Mr. Andal and Ms. Mandel absent, the Board sustained the action of the Franchise Tax Board.

The Board adjourned at 4:20 p.m.

The foregoing minutes are adopted by the Board on April 19, 2001.