A recent decision out of the Los Angeles County Superior Court marks a significant win for taxpayers involving the use of alternative apportionment and successful challenges to the Franchise Tax Board’s (“FTB”) regulations, which the court found to be inconsistent with the statute as applied. On February 26, 2026, the court in Smithfield Packaged Meats Corp. v. California Franchise Tax Board ordered the FTB (in  a Proposed Statement of Decision, which becomes final after an…