Newman

After a court trial, based on a stipulation of facts (Code Civ. Proc., § 283) and numerous exhibits, the trial court found in favor of plaintiffs/respondents Paul L. Newman and Joanne W. Newman and against defendant/appellant Franchise Tax Board (the Board). The Board appeals; it contends that the court erred when it determined the allocation formula to be applied between California and non-California sources of the Newmans’ acting income from the motion picture, “The Sting”; and when it found that the Newmans had given legally sufficient notice to the Board of their claim for a refund for a portion of their 1975 taxes.

Facts

The facts in this case are uncontroverted. The stipulation of facts and other exhibits contained all the facts before the trial court and may be summarized as follows:

Plaintiff Paul L. Newman (Newman) is an actor. He and his wife, Joanne W. Newman, are not California residents. Ms. Newman is a plaintiff be cause the dispute concerns California joint nonresident income tax returns filed by the Newmans, as husband and wife, for 1975, 1976 and 1977.

In October 1972, Newman entered into a “deal-player contract” with Universal Pictures for the motion…