In the News: John Saves Tax Client from Franchise Tax Board

John Goralka, Sacramento Estate Planning Attorney, Saves Tax Client from Franchise Tax Board

John challenged the California Franchise Tax Board for a client and prevailed!

Our Client received $2.9 million two weeks after changing his state of residency from California to Colorado. These funds were deferred compensation and retirement payments related to many years of services as a highly compensated employee for a national company while a California resident.

Saved Our Client $1 Million

The California Franchise Tax Board asserted that the funds were related to the services performed as an employee as a California resident and taxable to California. After an 18 month battle, The Goralka Law Firm was able to establish that Federal Law precluded California from taxing these funds because my client was now a Colorado resident. The California Franchise Tax Board withdrew its notice as a result of the appeal and protest. The tax, penalties and interest saved amounted to approximately $1 million. 

John Goralka is the lead attorney and founder of the Goralka Law Firm, P.C., and is an experienced Sacramento estate planning and tax planning lawyer.

For help in Sacramento with estate planning or tax planning, please contact our office.