In The News

Find out more about Dakessian Law through our press releases, publications and media coverage.

Dakessian Prevails in Excise Tax Case Before The Office of Tax Appeals

By Dakessian Law | April 15, 2023
Dakessian Law successfully represented the taxpayer in a case involving the taxability of hookah under the Cigarette and Tobacco Products Tax Law. At issue was whether the 50% test in former Rev. & Tax. Code Sec. 30121 applied to hookah or whether hookah was taxable regardless of tobacco content. In January 2021, Dakessian Law prevailed […]
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The Long Arm of California’s Market Sourcing and ‘Economic Nexus’ Standards–Reaching Nonresident Business Owners Everywhere

By Dakessian Law | September 8, 2022
Forbes (September 8, 2022):  The exodus of business owners leaving California raises an issue that may be counterintuitive for some—that California can and will tax the income of nonresidents who never set foot in the state. Unlike wages or compensation, which are typically taxed where services are performed, it is the footprint of the business […]
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Sourcing of Income to California and “Economic Nexus” Consequences for Nonresidents

By Dakessian Law | May 5, 2022
When it comes to the taxation of nonresidents, the California tax agencies—the Franchise Tax Board and the Office of Tax Appeals (“OTA”)—have held that a nonresident business owner, who never set foot in California (hereafter, the “State”), owed personal income taxes to the State. This is based on application of rules that look to the […]
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California Proposes New Wealth Tax

By Dakessian Law | February 24, 2022
Despite unexpectedly high personal income tax receipts exceeding forecasts by $9 billion for the first seven months of California’s 2022 fiscal year, Assembly Bill 2289 proposes raising even more revenue for the State, through a brand-new annual wealth tax. This brand-new levy would apply as follows: 1.5 percent on certain assets exceeding $1 billion ($500 […]
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Pennsylvania’s Intangible Expense Add-back Continues to have Unanswered Questions and Now Renewed Focus

By Dakessian Law | February 10, 2022
On February 8th, Pennsylvania’s intangible expense add-back statute received renewed focus in Governor Wolf’s budget proposal.  The add-back statute went into effect in 2015 and denies deductions for intangible expenses or costs with an affiliated entity, including interest expense if it was related to an intangible expense or cost.  (See 72 P.S. 7401(3)1.(t))  The add-back […]
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California Budget Proposal Encourages Investments Combating Climate Change

By Dakessian Law | January 25, 2022
California has been a longtime supporter of clean-energy investments.  Next year’s proposed budget promises to offer even more statutory credits and incentives.  The plan includes additions to the current R&D credit for companies headquartered in California that invest in activities and technologies mitigating climate change. In addition, California plans to invest an additional $6.1 billion […]
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Louisiana’s Transfer Pricing Managed Audit Program Expires April 30, 2022

By Dakessian Law | January 21, 2022
The Louisiana Department of Revenue’s (Department) voluntary initiative (RIB No. 21-029) for corporate income taxpayers will expire before you know it.  The last few years have seen lengthy and complex Department field audits resulting in significant transfer pricing adjustments which make this program attractive to eligible taxpayers with numerous domestic intercompany transactions. There are clear benefits […]
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California Suit Challenges Mandatory Single-Sales-Factor Apportionment

By Dakessian Law | September 16, 2021
TaxAnalysts – State Tax Notes (September 16, 2021): A lawsuit filed in California seeks to overturn the state’s mandatory single-sales-factor apportionment requirement, which it says was unlawfully passed. In One Technologies LLC v. Franchise Tax Board, a Texas company argues that it’s owed a refund for the tax it paid to California for the 2017 […]
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Senior community seeks tax relief due to damage by COVID

By Dakessian Law | September 14, 2021
San Francisco Daily Journal (September 14, 2021):  In what could be one of the first of many cases, the operators of a Sacramento senior living community have sued a county tax agency over its refusal to lower its assessment because of the COVID-19 pandemic. Attorney Marty H. Dakessian of Los Angeles stated in a complaint […]
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A Failure in Statutory Interpretation: The MTC and P.L. 86-272

By Dakessian Law | April 12, 2021
Tax Notes (April 12, 2021):  Relying on an overly broad interpretation of the U.S. Supreme Court’s decision in Wayfair, the Multistate Tax Commission appears poised to recommend weakening P.L. 86-272’s protection — even though Wayfair did not interpret and made no mention of the federal statute.   Click here to view entire article
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California Revisits Wealth Tax

By Dakessian Law | March 15, 2021
March 15, 2021 — California legislators plan to re-introduce a first-of-its-kind wealth tax proposal similar to the one that failed in 2020. Instead of a 4% tax on wealth over $40 million, this year’s proposal would impose a 1% tax on wealth above $50 million and a 1.5% tax on wealth above $1 billion. The new […]
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OTA Hears Dispute Over Application of Tax to Hookah Tobacco

By Dakessian Law | January 29, 2021
CalTaxletter (January 29, 2021): The Office of Tax Appeals held a hearing January 27 in the Appeal of Starbuzz International Inc., involving a dispute over the California Department of Tax and Fee Administration’s imposition of the tobacco products excise tax to shisha (hookah tobacco) sold by the taxpayer.   Click here to view entire article. (Subscription […]
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It’s Time To Invalidate Single-Sales Factor For Biz Income Tax

By Dakessian Law | December 7, 2020
Law360 (December 7, 2020) — We predict the 2020s will see just as seismic a shift in state tax constitutional law as the 2010s did with South Dakota v. Wayfair Inc.[1] Single-sales-factor apportionment will be subjected to a modern, nuanced judicial analysis, and another decades-old foundational precedent, Moorman Manufacturing Co. v. Bair[2] — upholding single-sales […]
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Taxpayers Entitled to Refund for 2011 Sale of Stock, OTA Rules

By Dakessian Law | December 4, 2020
CalTaxletter (December 4, 2020): Two taxpayers were entitled to a refund of $423,695 for the 2011 tax year, the Office of Tax Appeals concluded in an October 21 ruling in the Appeal of L. Conacher and J. Dea. In its 2-1 ruling, the OTA additionally denied the Franchise Tax Board’s proposal of $20,120 of additional […]
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State Supreme Court Lets Taxpayers’ Win Stand in Case Involving Tax on Liquid Storage Capacity

By Dakessian Law | January 17, 2020
CalTaxletter (January 17, 2020): The California Supreme Court this week denied review of a Court of Appeal ruling that invalidated a tax in Rialto as an invalid real property tax. The high court’s January 15 action leaves in place the taxpayer’s win in Tesoro Logistics Operations, LLC et al. v. City of Rialto. In its […]
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MVP: Dakessian Law’s Mardiros Dakessian

By Dakessian Law | November 14, 2019
Law360 (November 14, 2019) — Mardiros “Marty” Dakessian of Dakessian Law Ltd. scored a major victory this year in a Los Angeles tax dispute over whether a business was considered a wholesaler or retailer, which led to the reversal of a long-standing city policy, earning him a spot as one of Law360’s 2019 Tax MVPs. […]
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Former NFL Player Sues FTB Over Residency Issue

By Dakessian Law | May 6, 2019
Law360 (May 6, 2019): ­­ A former NFL player has sued California’s Franchise Tax Board in a dispute over whether he was a resident of the state after being drafted and owes more than $900,000, according to the player’s attorney. On Friday Joseph Keyshawn Johnson, a former wide receiver, sued the Franchise Tax Board in […]
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Successful Challenge of Los Angeles Business Tax Conferred Significant Public Benefit, Court Rules

By Dakessian Law | April 12, 2019
CalTaxletter (April 12, 2019):  A taxpayer’s successful challenge of Los Angeles’ application of a business gross receipts tax “resulted in the enforcement of an important right affecting the public interest – namely compelling the City to adhere to the Municipal Code and to abandon its practice of misclassifying businesses,” One of them was found at […]
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Lawmakers, Tax Experts Debate Future of BOE

By Dakessian Law | March 18, 2019
TaxAnalysts – State Tax Notes (March 18, 2019):  At the March 6 joint hearing of the Senate Governance and Finance Committee, the Budget and Fiscal Review Committee, and Budget Subcommittee No. 4 on State Administration and General Government, speakers weighed in on whether the BOE — which was stripped of all but its constitutional duties […]
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Wayfair Implementation Bill Clears First Committee With Unanimous Vote

By Dakessian Law | March 1, 2019
CalTaxletter (March 1, 2019):  Legislation to make changes to the California Department and Fee Administration’s implementation of South Dakota v. Wayfair, the U.S. Supreme Court decision relating to sales and use tax on transactions involving out-of-state sellers, was approved February 25 by the Assembly Revenue and Taxation Committee. The bill, AB 147 (Burke), received unanimous, […]
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Agency Denies FTB’s Petition to Rehear Case Involving Football Star Keyshawn Johnson

By Dakessian Law | February 22, 2019
CalTaxletter (February 22, 2019):  The Office of Tax Appeals on February 21 unanimously denied the Franchise Tax Board’s petition to rehear the Appeal of Keyshawn Johnson and Shikiri Johnson, finding no good cause to rehear an appeal decided in Johnson’s favor in 2017 – in the last appeal of an FTB assessment heard by the […]
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San Diego Airport Fights Fees in Hertz Suit Against City’s Port District

By Dakessian Law | August 5, 2018
Law360 (August 5, 2018) — Hertz Corp. and Enterprise RentACar Co. filed a complaint June 8 in the state Superior Court, challenging the $3.50 per rental car transaction fee imposed by the Port of San Diego in April to raise funds for a parking lot. Because the rental car lots are on airport property, the […]
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IRS Pick to Face Tough Questions on Agency’s Direction

By Dakessian Law | June 28, 2018
The Hill, (June 28, 2018):  The nomination of Chuck Rettig, a Beverly Hills, Calif., tax lawyer, comes at a critical moment for the IRS, which is tasked with implementing the new Republican tax law and needs to quickly modernize its technology. Tax lawyers who know Rettig say his background will be valuable because he understands […]
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California’s Tax System Overhaul Creates More Questions Than Answers for Businesses

By Dakessian Law | April 18, 2018
Forbes, Los Angeles (April 18, 2018): In a little over 72 hours in June 2017, Governor Jerry Brown and legislative leaders used the state budget process to radically transform California’s tax system, which had been in place for roughly the past 87 years. To me, that seems a bit like a physician performing open heart […]
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New IRS Chief Charles Rettig May Help Reform Embattled Agency

By Dakessian Law | February 12, 2018
Mardiros “Marty” Dakessian of Dakessian Law Ltd. in Los Angeles told Law360 he has known Rettig since around 2000 and that Rettig has the ability to “bring people together” in addition to having demonstrated integrity while representing taxpayers and playing a leadership role in multiple bar associations. Whatever Rettig’s priorities will be, whether they end up […]
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Marty Dakessian Named Tax MVP in 2017 by Law360

By Dakessian Law | December 18, 2017
Law360, New York (December 18, 2017):  Dakessian Law, Ltd. founding partner Mardiros “Marty” Dakessian makes his fourth appearance on the Law360 MVP list this year, thanks to a 15-year personal income tax fight that saved a local entrepreneur $3 million, as well as a $15 million win that cut a Fortune 500 food company’s tax […]
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A New Law Reorganizes California’s Tax System

By Dakessian Law | November 10, 2017
Los Angeles Lawyer Magazine (November 2017):  CALIFORNIA RECENTLY ENACTED ASSEMBLY BILL 102 (AB 102), dramatically shifting power from the state Board of Equalization (BOE). Also known as The Taxpayer Transparency and Fairness Act of 2017, AB 102 reorganizes the BOE and creates two new California taxing agencies that replace the BOE in appeals of state […]
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Through the Looking Glass – Reflections on the MTC

By Dakessian Law | July 31, 2017
Is the MTC the Multistate Tax Commission or the Multistate Tax Compact? After many years of litigating that question, we now know Commission is the better fit, as the courts have told us there is no binding compact. The commission “hazards much” to successfully argue the compact is merely an advisory agreement. But at what […]
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California Governor Appoints Head of New Tax Agency

By Dakessian Law | July 17, 2017
Governor Jerry Brown has appointed Nicolas Maduros as director of the California Department of Tax and Fee Administration as part of a major transition overhauling the State Board of Equalization’s (BOE) long-standing tax authority. Marty Dakessian said he’s hopeful that the Brown administration will consider input from stakeholders as it takes over the BOE’s adjudicative […]
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Bill to Overhaul California BOE Racing Through Legislature

By Dakessian Law | June 15, 2017
California Legislature seeks to pass Assembly Bill 102 (A.B. 102) as part of the state’s budget. A.B. 102 is a significant overhaul of the system for administering California taxes and a significant reduction in responsibilities of the Board of Equalization (BOE). If enacted, A.B. 102 would establish two new agencies – the California Department of […]
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Retroactive Tax Laws Muddying Businesses’ Future Decisions

By Dakessian Law | May 22, 2017
According to Mardiros “Marty” Dakessian of Dakessian Law Ltd., the justices dropped the ball on offering clarity on a longstanding issue that has left businesses vulnerable to the “dangerous” possibility of states overturning court decisions through legislative action. “Michigan has undermined the rule of law in their own state,” Dakessian said. “In my opinion, by […]
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Marty Dakessian Named Tax MVP in 2016 by Law360

By Dakessian Law | November 28, 2016
Marty Dakessian was recognized by Law360 as a Tax MVP for 2016. The Law360 MVP awards highlight leading lawyers who “have distinguished themselves from their peers by securing hard-earned successes in high-stakes litigation, complex global matters and record-breaking deals.” About Law360 For the 2016 edition, Law360 editors reviewed more than 1,000 law firm submissions for […]
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FTB Riding High After Summary Judgment Win in Harley Commerce Clause Case

By Dakessian Law | November 2, 2016
A San Diego trial court has ruled in favor of the FTB in what could be one of the biggest cases in the history of California tax litigation (ruling attached). The case of Harley-Davidson v. Franchise Tax Board concerns whether a California law that allows only in-state taxpayers to elect unitary or separate company filing […]
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Marty Dakessian Featured in Bloomberg BNA Report about LA’s Hotel Tax on AirBNB

By Dakessian Law | August 1, 2016
In a recent Bloomberg BNA report, Los Angeles City Attorney Mike Feuer filed four civil and criminal complaints against landlords who were renting out apartment buildings through AirBNB. The city attorney alleged that the landlords were engaged in illegal activity that was exacerbating the City’s shortage of affordable housing. These civil actions follow a recent […]
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Surprise Ruling Says Some Local Taxes Need No Vote

By Dakessian Law | May 13, 2016
Last month, the Fourth District Court of Appeal issued an unexpected decision that could blow a hole through the constitutional vote requirements that protect Californians from unnecessary taxes. If the decision is not reversed by the California Supreme Court or de-published, it could result in the people of California losing their right to vote on […]
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Marty Dakessian Honored as a 2016 Southern California Super Lawyer

By Dakessian Law | May 2, 2016
For the third straight year, Marty Dakessian is a Southern California Super Lawyer. After a successful run as equity partner at Global 20 law firm Reed Smith, Marty started his own firm in January dedicated to representing taxpayers in disputes with California tax agencies. There, he continues his mission to help his clients and hold […]
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Attorney Marty Dakessian Opens Boutique California Tax Law Firm

By Dakessian Law | March 28, 2016
The Daily Commerce, a Los Angeles-based newspaper, published a feature story on Marty Dakessian and the launch of his new firm. Dakessian Law, Ltd., is focused exclusively on California tax disputes. In other words, the firm services clients with administrative and judicial controversies before the State Board of Equalization (sales and business taxes), the Franchise […]
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California Franchise Tax Board Recognizes Taxpayers Will Appeal Gillette Ruling

By Dakessian Law | February 29, 2016
Since the Gillette Co. v. Franchise Tax Board ruling plans to be appealed in the United States Supreme Court, the California FTB is recommending taxpayers and their representatives to wait until the conclusion of litigation before taking action on cases regarding the Multistate Tax Compact election issue. On December 31, 2015, the California Supreme Court […]
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Marty Dakessian Launches Three-Lawyer California Tax Boutique

By Dakessian Law | February 17, 2016
(February 17, 2016, LOS ANGELES) – Prominent California tax litigator Marty Dakessian has launched his own firm. In forming Dakessian Law—which will focus exclusively on representing taxpayers in California tax disputes—the 19-year tax law veteran leaves his position as equity partner at Global 20 law firm Reed Smith, where he has been for the past […]
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California Supreme Court Rules Against Taxpayers in Multistate Tax Compact Apportionment Case

By Dakessian Law | January 11, 2016
Reversing the California Court of Appeal in a case in which the issue was whether, for years between 1993 and 2005, multistate businesses (Taxpayers) could elect the standard, i.e., equal-weighted, 3-factor apportionment formula set forth in the Multistate Tax Compact (Compact) for purposes of apportioning their business income to California or were required to use […]
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Award-Winning Lawyer Marty Dakessian Launches California Tax Boutique

By Dakessian Law | January 1, 2016
Two-time Law 360 MVP withdraws as equity partner from Global 20 firm to form boutique dedicated to resolving California tax disputes LOS ANGELES (January 1, 2016) – Prominent California tax litigator Marty Dakessian has launched his own firm. In forming Dakessian Law—which will focus exclusively on representing taxpayers in California tax disputes—the 19-year veteran leaves […]
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Attorney Dakessian Talks About Court Upholding Tax Law That Helps CA Businesses

By Dakessian Law | January 1, 2016
As of late December 2015, the Supreme Court upheld a state law that readjusted multistate businesses’ income taxes; however, it only helped the companies based in California and harmed out-of-state businesses. This ruling impacted six major firms, including Proctor & Gamble, Sigma-Aldrich, Jones Apparel Group, Gillette, Kimberly-Clark and RB Holdings. They sought a $34 million […]
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Judge awards firm $1.2 million in fees in taxation case

By Dakessian Law | June 18, 2013
In 2013, Attorney Dakessian represented a real estate company in Nevada that was being subjected to taxation in California. The real estate firm was told to pay $2.27 million in back taxes by the Franchise Tax Board in 2000, after being audited. The owner of the firm was a resident of California and he paid […]
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Dakessian quoted in LA Daily Journal regarding FTB’s retroactively elimination of tax incentive

By Dakessian Law | April 15, 2013
Since 1993, California had provided its own version of a federal income tax law that allowed for the sale of qualified small business stock to be excluded as a tax deduction. This was only for company’s who had at least 80% of their payroll and assets within California. The Franchise Tax Board eliminated this tax […]
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