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@abctax55 wrote:

Stop doing business in CA, then you won't owe any CA tax.

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I'm not convinced this works in CA (or NY).  Someone at FTB must have been an Eagles fan.  You can check out any time you like, but you can never leave.

I haven't looked it up but one of the instructors at a CPE last year was citing a CA tax law case where an AZ business that never set foot in CA was somehow liable for CA income taxes because the finished product was delivered to a CA customer.  The instructor pointed out that by that standard if we do tax returns for any CA clients then FTB considers that to be CA source income subject to CA income taxes.  Even if we deliver the returns electronically or by mail.  CAGMC(alifonia).