1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 JULY 28, 2015 10 11 12 13 14 15 16 FINAL ACTIONS 17 18 19 20 21 22 23 24 25 26 27 REPORTED BY: Kathleen Skidgel 28 CSR NO. 9039 1 1 P R E S E N T 2 3 For the Board Jerome E. Horton of Equalization: Chairman 4 5 Sen. George Runner (Ret.) Vice Chairman 6 7 Fiona Ma, CPA Member 8 9 Diane L. Harkey Member 10 11 Yvette Stowers Appearing for Betty T. 12 Yee, State Controller (per Government Code 13 Section 7.9) 14 Joann Richmond 15 Chief Board Proceedings 16 Division 17 For Staff: Lou Ambrose 18 Tax Counsel IV Legal Department 19 William Stafford 20 Tax Counsel III Legal Department 21 22 ---oOo--- 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 JULY 28, 2015 4 ---oOo--- 5 MR. HORTON: Ms. Richmond. 6 MS. RICHMOND: Next are those items that 7 were taken under submission. 8 Our first item is B1, Thomas L. Wilson. 9 This taxpayer did not show up. 10 ---oOo--- 11 B1 THOMAS L. WILSON 12 NO. 780908 13 ---oOo--- 14 MS. HARKEY: Move to sustain the FTB. 15 MS. STOWERS: Second. 16 MR. HORTON: Member Harkey moves to sustain 17 the FTB. And impose a frivolous appeals penalty of 18 $200? 19 MS. HARKEY: Right. 20 MR. HORTON: Second by Member Stowers. 21 Without objection, Members, such will be 22 the order. 23 ---oOo--- 24 25 26 27 28 3 1 MS. RICHMOND: Our next item is B2, Clovus 2 M. Sykes. 3 ---oOo--- 4 B2 CLOVUS M. SYKES 5 NO. 817237 6 ---oOo--- 7 MS. HARKEY: I move to sustain the FTB. 8 MS. MA: Second. 9 MR. HORTON: Member Harkey moves to sustain 10 the FTB and impose a frivolous appeal penalty of 11 $5,000. Second by Member Ma. 12 Without objection, Members, such will be 13 the order. 14 ---oOo--- 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 1 MS. RICHMOND: Our next item is B3, Robert 2 E. Valdez and Judy M. Valdez. 3 ---oOo--- 4 B3 ROBERT E. VALDEZ and JUDY M. VALDEZ 5 NO. 819052 6 ---oOo--- 7 MS. HARKEY: I have a motion to make that 8 is kind of bifurcated. So it allows opportunity, I 9 suppose. 10 I move to the support the appellants, the 11 taxpayers, to sustain the appeal. 12 For 2008, I believe there was an error in 13 advice. The taxpayer seems to be very credible in 14 recalling what occurred. The FTB did not have any 15 information to refute or substantiate. And so I 16 think there is a case there for the amount. 17 In 2007 or eight, I rely on overcollection 18 by FTB based on the FTB analysis on the 2008 and '09 19 bill that was sent after the fact, for the estimated 20 tax payments, interest penalties, etcetera, when the 21 taxpayers were actually overpaid at the time. 22 MR. RUNNER: Second. 23 MS. STOWERS: Objection. 24 MR. HORTON: I'm trying to phrase that 25 motion. Help me out. 26 MS. HARKEY: I'll read it again. 27 MR. RUNNER: There's a motion -- 28 MR. HORTON: No, no. 5 1 There's a motion by Member Harkey to rule 2 in favor of the appellant relative to 2008, 3 acknowledging the error in written advice, mutual 4 communication between the Department and the 5 taxpayer constituting advice and relative to as 6 indicated for 2007. 7 Second by Member Runner. 8 MS. MA: What's 2007? For the -- 9 MS. STOWERS: What? 10 MR. HORTON: For the appellant. 11 MS. HARKEY: 2007 and eight is also for the 12 appellant -- 13 MR. RUNNER: Overcollection. 14 MS. HARKEY: -- based on overcollection. 15 MR. HORTON: As a overcollection. 16 Second by Member Runner. 17 Objection noted. 18 Ms. Richmond, please call the roll. 19 MS. RICHMOND: Mr. Horton. 20 MR. HORTON: No. 21 MS. RICHMOND: Ms. Harkey. 22 MS. HARKEY: Aye. 23 MS. RICHMOND: Mr. Runner. 24 MR. RUNNER: Aye. 25 MS. RICHMOND: Ms. Ma. 26 MS. MA: Aye. 27 MS. RICHMOND: Ms. Stowers. 28 MS. STOWERS: No. 6 1 MS. RICHMOND: Motion carries. 2 ---oOo--- 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, KATHLEEN SKIDGEL, Hearing Reporter for 8 the California State Board of Equalization certify 9 that on July 28, 2015 I recorded verbatim, in 10 shorthand, to the best of my ability, the 11 proceedings in the above-entitled hearing; that I 12 transcribed the shorthand writing into typewriting; 13 and that the preceding pages 1 through 7 constitute 14 a complete and accurate transcription of the 15 shorthand writing. 16 17 Dated: July 30, 2015 18 19 20 ____________________________ 21 KATHLEEN SKIDGEL 22 Hearing Reporter 23 24 25 26 27 28 8