Which older California FTB Legal Rulings were withdrawn by Legal Ruling 1998-6?

Plain-English summary

Legal Ruling 1998-6 withdrew 79 earlier California FTB Legal Rulings. FTB said the listed rulings were no longer applicable because of subsequent appeals, court decisions, and legislative changes.

The official attachment supplies a reason for every withdrawal. Those reasons include prior law, superseding statutes or regulations, later case law or appeals, conformity to federal law, repealed regulations, and rulings FTB considered unnecessary.

This document is a status notice, not a new substantive tax holding. Its practical effect is that none of the 79 listed rulings should be treated as active FTB guidance.

The withdrawn rulings

The attachment lists these 79 ruling numbers:

• 00-007, 00-010, 00-014, 00-020, 00-023, 00-025, 00-026, 00-029, 00-033, 00-041, 00-048, 00-049, 00-051, 00-053, 00-054, and 00-061.

• 00-063, 00-065, 00-078, 00-083, 00-092, 00-093, 00-103, 00-104, 00-110, 00-115, 00-121, 00-132, 00-148, 00-149, 00-151, and 00-152.

• 00-157, 00-160, 00-163, 00-164, 00-165, 00-169, 00-186, 00-191, 00-194, 00-240, 00-255, 00-259, 00-260, 00-281, 00-285, and 00-287.

• 00-291, 00-297, 00-307, 00-308, 00-310, 00-312, 00-314, 00-315, 00-316, 00-317, 00-320, 00-325, 00-336, 00-343, 00-350, and 00-352.

• 00-361, 00-363, 00-369, 00-371, 00-373, 00-374, 00-377, 00-390, 00-394, 00-399, 00-405, 00-426, 00-427, 00-429, and 00-430.

Why FTB withdrew them

The attachment does not use one universal reason. It identifies the basis ruling by ruling.

Prior law or later legislation

Many entries are labeled simply "PRIOR LAW." Others were superseded by a specific statutory provision, including section 23151.1.

Regulations

Several rulings were superseded by regulations, including regulations 23183, 18001-1, 24348, 23038, 23331, and 17953. One ruling was withdrawn because it cited a regulation that had been repealed, and another because federal regulations superseded it.

Cases and administrative appeals

The list identifies rulings superseded by case law or by the Appeal of Virgil M. and Jeanne P. Money.

Unnecessary or replaced withdrawal notices

Many rulings are labeled "UNNECESSARY." Several later rulings had existed only to withdraw an earlier ruling; Legal Ruling 1998-6 withdrew those later notices while expressly keeping the underlying earlier ruling withdrawn.

What this means for you

Taxpayers and preparers using historical research

If an argument depends on one of the 79 listed rulings, do not cite it as current FTB guidance. Use the attachment's reason as a pointer and locate the later statute, regulation, case, appeal, or guidance that controls.

Researchers reviewing old ruling compilations

An old database or printed reporter may still reproduce the withdrawn text. Legal Ruling 1998-6 is the official notice that the listed items were withdrawn on December 4, 1998.

Rulings that had already been withdrawn

The notice preserves the withdrawn status of the underlying rulings. For example, when it withdrew a later notice whose purpose was to withdraw an earlier ruling, the attachment states that the earlier ruling remained withdrawn.

Common questions

Q: How many rulings did Legal Ruling 1998-6 withdraw?

A: The official attachment lists 79 distinct ruling numbers.

Q: Did FTB replace them all with one new rule?

A: No. The attachment gives different reasons for different rulings, including prior law, specific statutes or regulations, case law, appeals, federal conformity, and redundancy.

Q: Can a listed ruling still be used as active FTB guidance?

A: No. Legal Ruling 1998-6 says each ruling on the attached list is withdrawn.

Q: Does the attachment reproduce the full replacement authority?

A: No. It provides the ruling number, issue date, CCH reference, subject, and a short reason for withdrawal.

Q: Why does the official page show a 2025 update date?

A: That is webpage-maintenance metadata. The ruling itself is dated December 4, 1998.

Source

• Landing page: California FTB Legal Rulings
• Official ruling: Legal Ruling 1998-6
• Official attachment: Legal Rulings Withdrawn on December 4, 1998

Original ruling text

Home

Legal ruling 1998-6

STATE OF CALIFORNIA
Franchise Tax Board - Legal Division
PO Box 1720
Rancho Cordova CA 95741-1720

916 845 3309

FAX: 916 845 3648

Kathleen Connell, Chair
Dean Andal, Member
B. Timothy Gage, Member

December 4, 1998

Subject: Withdrawal of Obsolete Legal Rulings

A number of Legal Rulings that this Department has issued are no longer applicable due to subsequent appeals, court decisions, and legislative changes. This ruling is to advise that each of the Legal Rulings on the attached list is hereby withdrawn.

Drafting Information

The principal author of this ruling is Dan Converse of the Franchise Tax Board, Legal Branch. For further information regarding this ruling, contact Mr. Converse at the Franchise Tax Board, Legal Branch, P.O. Box 1720, Rancho Cordova, CA 95741-1720.

Last updated: 09/24/2025

Official attachment: Legal Rulings Withdrawn on 12/04/98

Home

Legal ruling 1998-6 Attachment

Legal Rulings Withdrawn on 12/04/98

Ruling
Issued
CCH
Subject Matter
Reason for Withdrawl

00-007
06/27/58
200-961
Financial Corporations: Computation of liability upon change from general business corporation
SUPERSEDED BY REGULATION 23183

00-010
06/27/58
200-964
Deductions: Washington State Business and Occupation Tax
PRIOR LAW

00-014
06/27/58
200-968
Community Income: During administration of wife’s estate
UNNECESSARY

00-020
06/24/58
200-974
Franchise Tax: Proration upon qualifying as an insurance company
SUPERSEDED BY SECTION 23151.1

00-023
06/23/58
200-977
Nonresident estates: Tax credits
SUPERSEDED BY REGULATION 18001-1

00-025
06/23/58
200-979
Death Benefits: State retirement system; death in line of duty
PRIOR LAW

00-026
06/30/58
200-980
Gross Income: renegotiation rebate
PRIOR LAW

00-029
06/25/58
200-983
Corporations: Change from commercial to exempt status
SUPERSEDED BY SEC. 23151.1

00-033
06/25/58
200-987
Trusts: Single or multiple
PRIOR LAW

00-041
06/25/58
200-995
Public Heath Service: Tax status of commissioned members
CITES REGULATION THAT HAS BEEN REPEALED

00-048
06/27/58
201-002
Residence: Determination of status
UNNECESSARY

00-049
06/27/58
201-003
Residence
UNNECESSARY

00-051
06/27/58
201-005
Bad Debt Reserves: Building and loan associations
SUPERSEDED BY REGULATION 24348

00-053
06/27/58
201-007
Community Property Agreement: Nonresident spouses
UNNECESSARY

00-054
06/27/58
201-008
Residence: Effect of military personnel registering to vote
SUPERSEDED BY FEDERAL REGULATIONS

00-061
06/27/58
201-015
Corporate Reorganizations: Step transaction
CONFORMED TO FEDERAL LAW

00-063
06/27/58
201-017
Associations Taxable as Corporations: Oil and gas joint operating agreements
SUPERSEDED BY REG. 23038

00-065
06/27/58
201-019
Community Property: Property held in joint tenancy
UNNECESSARY

00-078
06/16/58
201-032
Date of Dissolution: Credit Unions
SUPERSEDED BY REGULATION 23331

00-083
06/17/58
201-037
Residence: Military personnel
PRIOR LAW

00-092
06/25/58
201-046
Receivers, Trustees, and Assignees for Benefit of Creditors: Liability under the Bank and Corp. Tax Law
PRIOR LAW

00-093
06/25/58
201-047
Residence: Military Personnel
PRIOR LAW

00-103
06/25/58
201-057
Residence
UNNECESSARY

00-104
06/25/58
201-058
Source of Income: Tax credits
UNNECESSARY

00-110
05/16/58
201-064
Community Property: Division upon divorce
UNNECESSARY

00-115
05/12/58
201-069
Production Credit Associations: Interest on government bonds
SUPERSEDED BY CASE LAW

00-121
05/08/58
201-075
Dividend Tax: Singapore
PRIOR LAW

00-132
06/23/58
201-086
Recording Artists: Taxability of income; Change of residence status
SUPERSEDED BY APPEAL OF VIRGIL M. & JEANNE P. MONEY

00-148
06/24/58
201-102
Month: Construction
Previously withdrawn by LR-310 which is itself withdrawn by this notice.

00-149
06/24/58
201-103
Residence: Wife of military personnel
PRIOR LAW

00-151
06/24/58
201-105
Interest Income: Securities of a corporation wholly owned by a municipal corporation
PRIOR LAW

00-152
06/24/58
201-106
License Taxes: Offset under Section 23184(c)
PRIOR LAW

00-157
12/05/58
201-111
Income Tax of a Foreign Country
Previously withdrawn by LR-343 which is itself withdrawn by this notice

00-160
12/02/57
201-114
Community Property: Amounts paid after death
UNNECESSARY

00-163
11/22/57
201-117
Treaties: Taxation of foreign corporations exempt from federal taxation
UNNECESSARY

00-164
12/05/58
201-118
Loss of Exempt Status by Social Clubs
Previously withdrawn by LR-430 which is itself withdrawn by this notice

00-165
11/13/57
201-119
Residents: Incompetents
PRIOR LAW

00-169
10/29/57
201-123
Foreign Trusts: Taxability of accumulated income
PRIOR LAW

00-186
12/05/58
201-140
Combined Report – Computation of Loss on Liquidation of Subsidiary
Previously withdrawn by LR-394 which is itself withdrawn by this notice.

00-191
12/05/58
201-145
Taxes Paid Other Countries: Japanese Tax W/H on Rental Income
Previously withdrawn by LR-336 which is itself withdrawn by this notice.

00-194
01/22/57
201-148
Taxability of Income Under Section 17596: Date of accrual of income from trust where there is a change in beneficiary’s residence
SUPERSEDED BY APPEAL OF VIRGIL M. & JEANNE P. MONEY

00-240
10/28/59
201-424
Tax Credit: New York and District of Columbia Unincorporated Business Taxes
PRIOR LAW

00-255
08/21/64
202-491
Gross Income: Exempt Interest Income
PRIOR LAW

00-259
08/21/64
202-495
Corporations Formerly Subject to Franchise Tax
SUPERSEDED BY SEC. 23151.1

00-260
08/21/64
202-496
Exemption: Homestead Survival on Divorce
UNNECESSARY

00-281
04/23/65
202-858
Tax Rate Change: Applicability of Composite Rate; Composite rate not applicable to dissolved fiscal year corporation
PRIOR LAW

00-285
04/23/65
202-862
Banks: Bad Debt Reserve Existing on Liquidation
SUPERSEDED BY REGULATION 24348

00-287
04/23/65
202-864
Allocation: Stock Broker Partnership Income
PRIOR LAW'; PRE-UDITPA

00-291
04/23/65
202-868
Source of Trust Income: Corpus Consists of Intangibles
SUPERSEDED BY REGULATION 17953

00-297
04/23/65
202-874
Cooperative: Year of Inclusion of Advances to Members
PRIOR LAW

00-307
08/25/66
203-406
Title Insurance Company: Trust Department and Escrow Services
PRIOR LAW

00-308
08/25/66
203-407
Savings and Loan Associations: Partially Guaranteed Loans; Effect on Bad Debt Reserve
SUPERSEDED BY REGULATION 24348

00-310
08/25/66
203-409
Definition of Month

(LR-148, previously withdrawn by LR-310, remains withdrawn)
SUPERSEDED BY SEC. 23151.1

00-312
08/25/66
203-411
Tax Exempt Business League
UNNECESSARY

00-314
08/25/66
203-413
Savings & Loan Associations: Bad Debt Reserve Under Regulation 24348(a)
SUPERSEDED BY REGULATION 24348

00-315
08/25/66
203-414
Financial Corporations – Right of Offset by Cooperatives
Previously withdrawn by LR-320 which is itself withdrawn by this notice

00-316
08/25/66
203-415
Savings & Loan Associations: Bad Debt Reserve Under Regulation 24348(a)
SUPERSEDED BY REGULATION 24348

00-317
08/25/66
203-416
Savings & Loan Associations: Bad Debt Reserve Under Regulation 24348(a)
SUPERSEDED BY REGULATION 24348

00-320
01/19/67
203-659
Withdrawal of LR-315

(LR-315, previously withdrawn by LR-320, remains withdrawn)
UNNECESSARY

00-325
02/28/68
203-872
Tax Credit: Computation of Credit for Taxes Paid to Another State
UNNECESSARY

00-336
05/06/69
204-218
Taxes Paid Other Countries: Japanese Tax on Rental or Royalty Income

(LR-191, previously withdrawn by LR-336, remains withdrawn)
PRIOR LAW

00-343
04/15/70
204-419
Withdrawal of LR-157

(LR-157, previously withdrawn by LR-343, remains withdrawn)
UNNECESSARY

00-350
08/01/72
204-905
Financial Corporations: Offsets Against Tax
PRIOR LAW

00-352
01/08/73
204-907
Foreign Taxes Paid by Motion Picture Distributors or Producers
UNNECESSARY

00-361
05/11/73
204-971
Deductions: Personal Property Taxes
PRIOR LAW

00-363
08/24/73
205-023
Corporation: Commencing Year Credits as Applied to Dissolving Year Liability
PRIOR LAW

00-369
01/03/74
---
Characterization of the Texas Oil and Natural Gas Production Tax
Previously withdrawn by LR-405 which is itself withdrawn by this notice

00-371
01/15/74
205-086
Deductions: Deductibility of Hawaiian Gross Income from California Income for Tax Purposes
PRIOR LAW

00-373
04/11/74
205-117
Effect of Oregon Homeowner and Renter Property Tax Refund Claim Upon California Tax Credit
PRIOR LAW

00-374
07/02/74
205-118
Corporate Deductions – Interest
Previously withdrawn by LR-429 which is itself withdrawn by this notice

00-377
08/07/74
205-174
Tax Offset of "Utility Users’ Taxes" by Savings and Loan Associations
PRIOR LAW

00-390
06/02/75
205-321
Cooperative: Effect of Payment of Federal Income Tax Liability on California Franchise Tax; Ability to Establish Nontaxable Reserves
PRIOR LAW

00-394
12/17/75
205-374
Withdrawal of LR-186

LR-186, previously withdrawn by LR-394, remains withdrawn
UNNECESSARY

00-399
01/19/77
205-583
Taxable Status: Native Americans (Indians): Reservation Indians Not Taxable on Income Derived From Reservation Sources
UNNECESSARY

00-405
06/01/77
205-801
Withdrawal of LR-369

LR-369, previously withdrawn by LR-405, remains withdrawn
UNNECESSARY

00-426
12/24/86
401-481
Sale of Partnership Interest
Previously withdrawn by LR-429 which is itself withdrawn by this notice

00-427
02/01/87
401-482
Taxation of Insurance Companies Engaged in Noninsurance Business Activities
SUPERSEDED BY CASE LAW

00-429
03/28/88
401-616
Withdrawal of LR-374 and LR-426

(LR 374 and LR-426, previously withdrawn by LR-429, remain withdrawn
UNNECESSARY

00-430
05/09/88
---
Withdrawal of LR-164

(LR-164, previously withdrawn by LR-430, remains withdrawn)
UNNECESSARY

Last updated: 09/24/2025