California law permits local governments to favor some types of businesses over others. For example, in Madain v. City of Stanton, a city ordinance prohibited adult-oriented businesses from operating within 300 feet of “sensitive uses,” including churches. Local governments may not, however, manipulate the permit application system to allow preferred uses to gain priority over… read more
Many businesses are subject to regulation on more than one level. A business may be subject to federal regulation, state regulation, and local regulation. A common challenge to the enforcement of a state or local regulation is the argument that the regulation is preempted by the law of a higher level government.
In a recent Tax Court decision, the Court made clear that use of tax preparation software is not a defense to the imposition of penalties for filing an inaccurate tax return. The Internal Revenue Code permits the Internal Revenue Service to impose a 20% penalty for either substantially underreporting income income tax or negligently underreporting… read more