OTA Emergency Regulations Effective January 1, 2018
Effective January 1, 2018, all California franchise/income/business tax appeals formerly heard by the State Board of Equalization (SBE) will be heard by the new Office of Tax Appeals (OTA). On December 26, 2017 OTA published Emergency Regulations covering the handling of tax appeals at the new appellate body. The regulations mirror, to some extent, the former SBE Rules for Tax Appeals with some notable changes. One of those changes is to afford California Department of Tax and Fee Administration (CDTFA) staff a rehearing petition right on all cases that were heard by the elected SBE but not final prior to 12/31/17. A five day comment period to these regulations closed out on Tuesday, January 2, 2018. Because those Regulations conferred a new right on CDTFA, we provided comments addressing our concerns. The new emergency regulations which will be in effect for approximately a year until final regulations go through the regulatory rulemaking process. All cases will be handled under these new emergency regulations as well as the California Administrative Procedures Act. Please review the emergency regulations [OTA-FINAL-DRAFT-Emergency-Regulations] as well as our concern/comment letter [Response to OTA Emergency Regs. (1-2-18)].