Here's the fact pattern:
A Judge from the State Supreme Court of Nevada was offered a visiting
professor's chair at Boaldt Hall in California. The terms of his
leave of absence call for him to be available in NV for all Holidays
and each Friday during the school year. For this, Judge remains with
full benefits from NV, including retirement and a salary of a 1/2 time
judge.
From September through December 2004, Judge actually worked most
Fridays, and the entire Christmas recess in the Nevada Supreme Court.
Judges duties at Boaldt Hall: Teach 2classes per Semester, maintain
office hours of at least 3 hours a week, and give 2 seminars during
the school year open to all students. For this, judge is considered a
contract 1/2 time employee, (I don't know if that means he gets a 1099
or w-2) and would be paid each day he would be working on behalf of
Boalt Univ., whether lecturing or researching, whether that work is
accomplished in NV or CA, plus housing on Boalt campus. Judge
receives no compensation for travekl time or expenses from either CA
or NV.
Judge filed a non-resident (540NR) with CA on January 10, 2005. He
computed his hours only on the days he worked in CA., and excluded any
income received from NV. During the Fall of 2004, Judge only spent s
days per week in CA, the balance of time was spent in Nevada.
However, most of the time spent in NV was working on preparing his
seminars, and organizing his lectures.
Essentially Judge paid taxes on just about 1/2 of income received from
CA. His rationale is that he normally worked 6 days a week, 3 in NV,
and 3 in Ca. All checks from Boalt were direct deposited into his NV
bank account (this bank has no offices in CA).
The Franchise Tax Board argues all income earned from a CA Source is taxable.
He only worked 4 months in CA. The FTB notified him on Feb. 28, and
is now asking for penalties and interest, plus tax owed, and says
penalties and interest accrue on the day he filed his` return (Jan 10
2005.) Judge argues his taxes aren't due until April 15th, so they
can't charge him penalties and interest. He also disputes The FTB
findings on taxable income.
The FTB has argued that Judge has not adhered to the correct appeal
process, so there for, the FTB does not have to act. However if that
is incorrect, the FTB's position is that they have the final say and
there will be no reconsideration.
I need to prepare memorandum of points and authorities (inter0office
for my boss at the FTB. I am to address the position taken by the
FTB, and the merits of what the Judge feels.
I can't clarify the fact pattern, so you need not ask me to. I need
as many cases (good law) and codes as you can find. At least 20.
Also, can you cite a publication like say Publication 17 from the IRS
as an official primary source of law? I appreaciate your help! Thank
you! |
