This information is only of a general nature, intended simply as background material, omits many details and special rules and cannot be regarded as legal or tax advice.
C onsider the following situation.
The primary issue being examined is whether your corporation and its subsidiaries were engaged in a single unitary business during those years. The ex-CEO and other former executives of the corporation who have personal and intimate knowledge about the business operations of the corporation during the 1980s are now in their sixties or seventies. Their testimony would support strongly your unitary filing position. This technique is particularly useful in California state tax matters, because California's proceedings to perpetuate testimony are more liberal than the corresponding United States Tax Court rules. Although perpetuated testimony may be useful at trial, such testimony instead may encourage and expedite settlements by corroborating previously presented facts and revealing to the FTB the strength of your filing position.