North Star Tax and Legal Briefing

A California charity president signs a "loan" to his own LLC and nobody votes. A September 2026 Tax Court decision shows the insider owing more than $1.3 million in excise taxes on $590,000 he never returned, and California's self-dealing rules reach the same transfer and the other directors with it. How the 25% and 200% taxes work, how cash correction heads off the second tier, and what a board should do now. https://ca-legal.net/california-nonprofit-insider-loan-excess-benefit-5236-jagannath/

Missed the 90-day window to petition the U.S. Tax Court after an IRS notice went to an old address? Some circuits now forgive late petitions, but California taxpayers in the Ninth Circuit face the toughest rule in the country. This episode covers the Kings Road decision for partnerships, the collection due process route, and the separate Franchise Tax Board clocks. Full analysis: https://ca-legal.net/california-missed-90-day-tax-court-deadline-kings-road-ninth-circuit/

A buyer's draft reciting one dollar and other consideration, a broad noncompete, and a sign-now-close-later timeline can cost a California seller the real price, the covenant, and a secured position if the buyer later files bankruptcy. How California courts read vague purchase agreements, when the noncompete exception applies, and the protections and tax planning to insist on before signing. https://ca-legal.net/california-business-sale-purchase-agreement-1-dollar-noncompete-section-365/

A preparer falsifies returns, the client never knows, and years later the IRS sends a notice for every tainted year. After the Supreme Court declined to review the Murrin case, this episode explains when the limitations period stays open, what the Tenth Circuit has not decided, and what a New Mexico taxpayer should do within the 90-day window. https://nm-legal.net/tax-preparer-fraud-statute-of-limitations-murrin-new-mexico/

An S corporation sells one division to an out-of-state buyer. Can California tax the gain? A June 2026 Office of Tax Appeals opinion, Western Distributing, shows how the unitary business test decides it, why calling the gain nonbusiness income backfires, and what division-level books an owner needs years before a sale. Full analysis: https://ca-legal.net/california-unitary-business-s-corporation-division-sale-western-distributing/

A green card does not restore the marital deduction when the surviving spouse is not a U.S. citizen, and a living trust that leaves everything to the survivor can fail on that one point. This episode explains why California community property cuts the exposure in half, how a joint tenancy deed can hand it back, and where a dormant QDOT fits. Full analysis: https://ca-legal.net/noncitizen-spouse-qdot-california-community-property-estate-planning/