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 FEBRUARY 22, 2017 10 (Prepared from audio recording) 11 12 13 14 15 FINAL ACTIONS 16 17 18 19 20 21 22 23 24 25 26 27 PREPARED BY: Kathleen Skidgel 28 CSR NO. 9039 1 1 P R E S E N T 2 3 For the Board of Equalization: Fiona Ma, CPA 4 Chairwoman 5 Diane L. Harkey Vice Chair 6 Jerome E. Horton 7 Member 8 Sen. George Runner (Ret.) Member 9 Yvette Stowers 10 Appearing for Betty T. Yee, State Controller 11 (per Government Code Section 7.9) 12 Joann Richmond 13 Chief Board Proceedings 14 Division 15 For Board of 16 Equalization Staff: Anthony Epolite Tax Counsel IV 17 Legal Department 18 Grant Thompson Tax Counsel IV 19 Legal Department 20 ---oOo--- 21 22 23 24 25 26 27 28 2 1 5901 GREEN VALLEY CIRCLE 2 CULVER CITY, CALIFORNIA 3 FEBRUARY 22, 2017 4 ---oOo--- 5 MS. RICHMOND: So next we'll take up our 6 items that have been submitted for decision. 7 Item B2 is a waived appearance. 8 ---oOo--- 9 ITEM B2 10 CHARLES K. LWANGA 11 NO. 935862 12 ---oOo--- 13 MR. HORTON: Move to sustain the 14 Department. 15 MS. STOWERS: Second. 16 MS. MA: Okay. We don't need to have Mr. 17 Epolite? 18 MR. HORTON: No. 19 MS. MA: No? Okay. 20 So, Mr. Horton moves to sustain the 21 Department, seconded by Ms. Stowers. 22 Without objection, motion carries. 23 ---oOo--- 24 25 26 27 28 3 1 MS. MA: Next item, Ms. Richmond. 2 (Pause.) 3 MS. RICHMOND: I'm getting there. 4 Our next item is B8 Roderick A. Harmon and 5 Diana K. Harmon. This was also a waived 6 appearance. 7 ---oOo--- 8 ITEM B8 9 RODERICK A. HARMON and DIANA K. HARMON 10 NO. 841164 11 ---oOo--- 12 MS. HARKEY: What number was that? 13 MR. EPOLITE: Chairwoman Ma, on this item, 14 I would note that for the 2008 tax year there've 15 been adjustments by the Franchise Tax Board on 16 appeal, that the additional tax has been adjusted 17 for 2008 to $1,563, and the accuracy-related penalty 18 has been abated. 19 The 2010 additional tax remains $110 20 however. 21 MS. HARKEY: What case is this? I'm sorry. 22 MS. MA: This is Mr. Harmon. 23 MR. RUNNER: B what? 24 MS. MA: Harmon. 25 MS. RICHMOND: B8. 26 MR. RUNNER: Thank you. 27 MS. MA: B8 Roderick A. and Diana K. 28 Harmon. 4 1 So the 2008 tax has been adjusted to 1,563, 2 with the penalties abated. 3 MR. EPOLITE: That's correct. 4 MS. MA: And the 2010 tax year is still at 5 $110. 6 MR. EPOLITE: That's correct. 7 MS. HARKEY: Okay. 8 MR. HORTON: Move to sustain FTB, noting 9 adjustments. 10 MS. STOWERS: Second. 11 MS. MA: Okay. Mr. Horton moves to sustain 12 the FTB with the adjustment. Ms. Stowers seconds. 13 Without objection, motion carries. 14 ---oOo--- 15 16 17 18 19 20 21 22 23 24 25 26 27 28 5 1 MS. MA: Ms. Richmond, next item. 2 MS. RICHMOND: Our next item is B11 Cesar 3 Z. Lugo. This is a waived appearance. 4 ---oOo--- 5 ITEM B11 6 CESAR Z. LUGO 7 NO. 790947 8 ---oOo--- 9 MR. HORTON: Move to sustain the FTB. 10 MR. EPOLITE: Um, I would also like to note 11 -- 12 MR. HORTON: Noting adjustments. 13 MR. EPOLITE: On Lugo -- 14 MS. MA: Yep. 15 MR. EPOLITE: -- that the additional tax on 16 appeal has been reduced to $6,571, and the 17 accuracy-related penalty has been reduced to 18 $1,314.20. 19 MS. HARKEY: That's what I have. 20 MS. MA: Okay. Okay, Mr. Horton. 21 MR. HORTON: Move to sustain the FTB, 22 noting adjustments. 23 MS. STOWERS: Second. 24 MS. MA: Seconded by Ms. Stowers. 25 No objection. Motion carries. 26 ---oOo--- 27 28 6 1 ---oOo--- 2 (RECALLED) 3 ITEM B2 4 CHARLES K. LWANGA 5 NO. 935862 6 ---oOo--- 7 MS. MA: Ms. Richmond. 8 MR. EPOLITE: I would also like to note -- 9 going back to B2 item, Lwanga -- that for the 10 record, that on appeal the Franchise Tax Board is 11 abating the filing enforcement fee. 12 MS. MA: Is that the $263? 13 MR. EPOLITE: Of $76. 14 MS. MA: Okay. So the additional tax is 15 still $205? 16 MR. EPOLITE: That's correct. But on 17 appeal FTB is now abating the $76 filing enforcement 18 fee. 19 MR. HORTON: Move to rescind the original 20 motion. 21 MS. STOWERS: Second. 22 MS. MA: As adjusted, okay. 23 Mr. Horton moves, Ms. Stowers seconds, to 24 sustain the FTB, less the $76 -- 25 MR. EPOLITE: Filing enforcement fee. 26 MS. MA: -- filing enforcement fee. 27 MR. EPOLITE: Thank you. 28 MS. MA: Okay. Without objection, motion 7 1 carries. 2 MR. EPOLITE: Thank you. 3 MS. MA: Okay. Thank you. 4 Any other items? 5 MS. RICHMOND: That concludes our items 6 that have been submitted. 7 MS. MA: Okay. Thank you to all the 8 attorneys. 9 ---oOo--- 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8 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 state 9 that I transcribed from recorded audio, to the best 10 of my ability, the proceedings in the above-entitled 11 hearing; and that the preceding pages 1 through 8 12 constitute my transcription of the proceedings. 13 14 Dated: February 27, 2017 15 16 17 ____________________________ 18 Kathleen Skidgel, CSR #9039 19 Hearing Reporter 20 21 22 23 24 25 26 27 28 9