1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 5901 GREEN VALLEY CIRCLE 3 CULVER CITY, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 MARCH 22, 2011 10 CORPORATE FRANCHISE AND PERSONAL INCOME TAX HEARING 11 APPEAL OF 12 JIMMY A. PRINCE 13 NO. 534124 14 AGAINST PROPOSED ASSESSMENT OF 15 ADDITIONAL INCOME TAX 16 17 18 19 20 21 22 23 24 Reported by: Juli Price Jackson 25 CSR No. 5214 26 27 28 1 1 P R E S E N T 2 For the Board Jerome E. Horton of Equalization: Chair 3 Michelle Steel 4 Vice-Chairwoman 5 Betty T. Yee Member 6 George Runner 7 Member 8 Marcy Jo Mandel Appearing for John 9 Chiang, State Controller (per Government Code 10 Section 7.9) 11 Diane G. Olson Chief 12 Board Proceedings Division 13 14 For Board of Lou Ambrose Equalization Staff: Tax Counsel 15 16 17 For Franchise Tax Karen Smith 18 Board: Tax Counsel 19 For Appellant: Jimmy Prince 20 Taxpayer 21 ---oOo--- 22 23 24 25 26 27 28 2 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 MARCH 22, 2011 4 ---oOo--- 5 MR. HORTON: Let us reconvene the Board of 6 Equalization. 7 Ms. Olson, what is our next scheduled matter? 8 MS. OLSON: Our next item is B5, Jimmy A. 9 Prince. 10 Please come forward. 11 FTB and the taxpayer have shared information 12 and I believe FTB has a recommendation. 13 MR. HORTON: Okay, thank you. 14 MS. SMITH: Thank you, Mr. Chairman. Karen 15 Smith, excuse me, representing the Franchise Tax Board. 16 Mr. Prince brought in a box and a bag of 17 information today that we have not previously seen. And 18 I looked at it and I determined that there might be some 19 items that we could allow, but there were so many items 20 in there and I saw some that we couldn't allow. 21 So, I am -- we agreed that if we had 60 days to 22 have an auditor go through it, reconcile the information 23 that he had with what the Tax Court did, to make sure 24 that it wasn't a doubling up on items and stuff, that -- 25 we hope 60 days would be enough. It's -- it's not very 26 organized, so, it's going to take a little while to go 27 through it. 28 MR. HORTON: Okay. 3 1 MS. SMITH: So, I'd ask for 60 days and if we 2 can't quite do it, maybe an additional 30 days after 3 that, if we need it? 4 MR. HORTON: Okay. Mr. Prince, you want to 5 come up to the mike? 6 Are you in concurrence with that? 7 MR. PRINCE: I'm in agreement. 8 MR. HORTON: You are in agreement? 9 Okay, Members, is there a motion to that 10 effect, 30-30-30? 11 MS. YEE: So moved. 12 MS. MANDEL: Well -- 13 MR. HORTON: It's been moved by Ms. Yee, second 14 by I as I could to Ms. Steel. 15 MS. MANDEL: With -- 16 MR. HORTON: Question? 17 MS. MANDEL: -- with the 30-30-30 really being 18 a 60 on it? 19 MS. STEEL: 60? 20 MS. SMITH: It's going to take at least 60. 21 MS. MANDEL: Okay. 22 MS. YEE: Okay. 23 MS. MANDEL: Is that -- 24 MR. HORTON: All right. 25 MS. MANDEL: -- okay? 26 MS. YEE: 60 with -- yeah. 27 MR. HORTON: Let's go with the 30-30, Members. 28 I thought I heard 60, maybe another 30 days. 4 1 So -- 2 MS. YEE: Yes. 3 MR. HORTON: -- I'm sure they can work it out 4 among themselves. 5 Mr. Ambrose, you want to explain to the 6 taxpayer what that is? 7 But let us -- let us conclude our business real 8 quick. 9 Any -- without objection, Members? 10 MR. RUNNER: Just I'm -- to clarify, I thought 11 I heard FTB say 60, maybe 30 more? 12 MS. SMITH: Yes. 13 MR. HORTON: Well, why don't I do this, why 14 don't -- Mr. Ambrose, explain the 30-30-30? 15 MR. AMBROSE: Well, the 30-30-30 would give FTB 16 30 days to examine the information and to submit a 17 revised or augment their briefing and explain, you know, 18 whether they're going to make adjustments based on the 19 evidence that Mr. Prince has presented today. 20 And then Mr. Prince would have 30 days -- 21 MR. HORTON: Right. 22 MR. AMBROSE: -- to respond to that and then 23 the Appeals Division would have 30 days to prepare the 24 summary decision based on that. 25 MR. RUNNER: Right and, at least what I had 26 heard, was that the Franchise Tax Board said they needed 27 60 and maybe 30 more on that first part. 28 MS. SMITH: Yes, sir. 5 1 MR. RUNNER: Okay. 2 MR. AMBROSE: I think we've -- I haven't done 3 this job that long, but my recollection is that we have 4 granted extensions before where necessary. 5 And they're generally not problem. 6 MR. HORTON: And -- I mean -- just for 7 clarification, is it necessary that you get that 8 authorization from the Board or can you do that 9 yourself? 10 MR. AMBROSE: I think we've -- we may have 11 checked with the Chair's office before, I'm not sure 12 about that. 13 But I don't think it's ever been denied. 14 MS. OLSON: Yes. 15 MR. HORTON: It seemed to be the consensus of 16 the Board that such should be -- such should be the 17 case, so on -- 18 MS. YEE: I am happy to revise the motion to so 19 reflect. 20 MR. HORTON: Okay, please? 21 MS. YEE: Okay. Move to -- move a 60 day 22 extension, based on Mr. Ambrose's description of what 23 will follow, with a possible 30 day extension to review 24 the additional documentation. 25 MR. HORTON: Okay, thank you. 26 Second? 27 MS. MANDEL: Second. 28 MS. STEEL: Second. 6 1 MR. HORTON: Ms. Steel. 2 It's been moved and second. Without objection, 3 Members, such will be the order. 4 Thank you very much, look forward to hearing 5 back from you guys. 6 MR. PRINCE: Thank you. 7 ---o0o--- 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 1 . 2 REPORTER'S CERTIFICATE 3 4 State of California ) 5 ) ss 6 County of Sacramento ) 7 8 I, JULI PRICE JACKSON, Hearing Reporter for the 9 California State Board of Equalization certify that on 10 MARCH 22, 2011 I recorded verbatim, in shorthand, to the 11 best of my ability, the proceedings in the 12 above-entitled hearing; that I transcribed the shorthand 13 writing into typewriting; and that the preceding pages 1 14 through 7 constitute a complete and accurate 15 transcription of the shorthand writing. 16 17 Dated: APRIL 5, 2011 18 19 20 ____________________________ 21 JULI PRICE JACKSON 22 Hearing Reporter 23 24 25 26 27 28 8