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McClellan Davis

About McClellan Davis

McClellan Davis has a staff with extensive Board experience. We routinely provide sales tax advice regarding anticipated transactions that may have tax consequences. We also represent taxpayers who need assistance appealing assessments, and filing claims for refund. We also offer managed audits and an initial free consultation to advise you of your options. You can set up an appointment by emailing us at taxhelp@salestaxhelp.com or calling toll free at 855 995-6789.

Med5

Reduction: Over $1,000,000

Med4

Reduction: Over $53,057.17

Med3

Reduction: Over $1,300,000

Med2

Reduction: Over $1,500,000

Med1

Reduction: $189,828
 

Amendment to California Regulation 1591

The California State Board of Equalization recently amended Regulation 1591 with little to no fanfare. The revision went through the amendment process in relative obscurity, probably because it only added three words to the regulation. The potential impact of those three words, however, could be material for those in the medical products industry.

The proposal for this revision came out of the Board’s Business Tax Committee which is headed by Ms. Diane Harkey. Ms. Harkey, who represents the Fourth Equalization District (Orange County), and her staff have been a great resource for taxpayers, and through this committee have brought about several […]

McClellan Davis Efforts Lead to Change for California Board Hearing Policies

Close-up Photo Of Gavel And Law Book

On May 24, 2016, Jesse W. McClellan, Managing Partner, testified before the Members of the State Board of Equalization (Board) at the California Taxpayers’ Bill of Rights Hearings in Sacramento, California to address a variety of concerns he had with Board policies. Part of his testimony focused on procedural problems with appeals cases that are scheduled for hearings before the elected Members of the Board. Specifically, Mr. McClellan stressed the need to establish guidelines for appeals cases that are removed from the hearing calendar by Board […]

McClellan Davis Fights for Taxpayer Rights

Fotolia_14893664_S_ConstitutionOn May 24, 2016, Jesse McClellan, Esq., Managing Partner, testified before the Members of the Board of Equalization at the California Taxpayers’ Bill of Rights Hearings regarding two issues that have been historically problematic for taxpayers.  The first issue addressed pertained to the Board’s practice of permitting the Business Tax and Fees Department (Department) and/or the Legal Appeals Division (Appeals) to remove cases from the board hearing calendar without any meaningful reason or timetable.  The second issue pertained to the lack of review for Administrative Protest denials.

 

The first problem:

A hearing before […]

Tax Update for California’s Wine Industry

As a result of a very recent change to a legal interpretation that dates back to 1961, viable yeast used in the production of wine is no longer considered to be subject to sales or use tax in California. The Board of Equalization has historically considered wine yeast to be taxable because it doesn’t all remain in the final product. Therefore, yeast was considered to be consumed by the wine producer in the production process. That interpretation, however, was inconsistent with rulings that considered beer yeast to be exempt, and it overlooked the fact that the presence of wine yeast during the fermentation process is instrumental […]

McClellan Davis Prevails on Large Fraud Case

Jesse McClellan, Esq. Jesse McClellan, Esq.

Jesse McClellan, Esq., Principal, obtained a 4-1 vote in favor of our client at the December 16, 2015 Board Hearing.  The case involved a 2007 audit of a popular Santa Barbara restaurant and nightclub, with the total liability exceeding $1.4 million.

The primary issue addressed at the Board Hearing was the assessment of a 25 percent fraud penalty, which expanded the audit period by an additional 5 years.  Jesse successfully argued that the Sales and Use Tax Department failed to carry its burden to prove fraud by clear […]