California sales taxes are imposed on retailers for the privilege of selling tangible personal property (i.e., products you can see, weigh, feel or touch, such as clothing, books, computers, DVDs or CDs) at retail in California. California sales taxes are determined by the gross receipts from retail sales. California sales taxes are collected by the California State Board of Equalization (the SBOE). California also imposes a use tax when you use, consume, give away or store tangible personal property in California that you purchased from an out-of-state vendor. If the out-of-state vendor does not collect the California tax on your purchase, then you must pay the tax.
The SBOE conducts regular sales tax audits to collect unpaid California sales taxes. They also collect California use taxes.
Have you been contacted by the SBOE about your sales or use tax liability? If so, then you should seek help from the experienced tax attorneys at David Lee Rice, A Professional Law Corporation, as soon as possible. The SBOE uses complex audit programs to determine your sales and use tax liability. An SBOE auditor typically requests:
- All of your books and records, including your income statements, balance sheets, general ledgers and other summary records of the business operations
- All of your state and federal income tax returns
- All of your original documents, including sales and purchase invoices, purchase orders, contracts and bank statements
- All of your resale certificates, exemption certificates and bills of lading
- All of your sales tax returns filed with the SBOE and the supporting documentation
Many sales and use tax problems are a result of a business owner’s failure to maintain adequate records. You should not ignore sales and use tax notices, though, just because your records are incomplete. This will result in the assessment of large state sales and use taxes, interest and penalties. Sales and use tax liability is as serious as employment and payroll tax liabilities. Rather than delay, contact David Lee Rice, A Professional Law Corporation, so that we can advise you on the legal reconstruction of lost or unmaintained business records.
California sales and use tax audits are very complicated and require an expert knowledge of the California sales tax laws and SBOE procedures. Our attorneys can handle your audit every step of the way.
If you are being audited by the Internal Revenue Service, Franchise Tax Board or any other state or local tax authority, contact the tax attorneys at David Lee Rice, A Professional Law Corporation, immediately at 310-517-8600 for a consultation.