The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 4

In “The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 3,” we discussed what happens after a Notice of Determination is issued, California’s special tax districts, DMV registration fees, not-so-secret warranty strategies and the importance of keeping your bill of lading.

In Part 4, we continue with processing transactions such as unwinds and the more complicated rollback. We will also discuss why it is a bad idea to try to avoid paying sales taxes on repossessions.

Finally, if perchance you do get audited, we’ve provided a list of records you should be keeping in your deal jackets and several reasons it would be a good idea to hire an attorney to represent you.

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The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 3

In The Car Dealer’s Guide to CA Sales & Use Tax Audits – Part 2, you learned what to expect if you were the recipient of an audit engagement letter, some common techniques the auditor uses as well as how the interview and records examination will be conducted.

In Part 3 of our guide, we will discuss what happens after a Notice of Determination is issued, a little on California’s special tax districts, DMV registration fees, not-so-secret warranty strategies and the importance of keeping your bills of lading.

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The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 2

In “The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 1,“ we discussed the CDTFA’s history of targeting car dealerships for sales tax audits due to the high abuse and error in the industry, as well as the complexity of these kinds of audits. We also outlined how auto dealers are selected for an audit.

In Part 2, you will learn what to expect if you are the recipient of an audit engagement letter, some common techniques the auditor will use as well as how the interview and records examination will be conducted.

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The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 1

Ask anyone who has ever owned a dealership and they will tell you that the car business is a tough one. With all the moving pieces that a dealership faces on a day in and day out basis though, one risk that often gets overlooked by owners is the risk that they face in a sales tax audit.

Most of the “mistakes” that we see in the context of audit preparation are benign. Things like not separating shipping charges properly, people not accounting for time and material costs, things being billed individually, or a failure to adjust sales tax rates for the proper district are little and seemingly harmless mistakes in the context of your business operations. But they will trigger an audit.

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Employment Development Department Installment Agreement – Part One

Under California law, taxpayers have a legal obligation to report and pay contributions and withholdings when due. If a taxpayer becomes delinquent in the payment of amounts due, the Employment Development Department (EDD) will take appropriate action to collect the full amount immediately.

The EDD recognizes that sometimes it is in the best interest of the state and in the interest of a California taxpayer that EDD allows an installment agreement to liquidate over a period of time an amount owed by taxpayer.

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California Payroll Tax: SUI, ETT, SDI & PIT Employer Guide

The California payroll tax structure for an employer in this state is based on four distinct taxes, commonly referred to as the CA SUI, ETT, SDI, and PIT payroll taxes. There are different rates for each of these taxes and the calculation methods are different as well.

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Establishing Residency or Domicile in California Can Be Taxing

Robert Wood, tax expert and frequent contributor to Forbes.com, wrote that “many would-be former Californians have unrealistic expectations about establishing residency in a new state. They may have a hard time distancing themselves from California, and they may not plan on California tax authorities pursuing them.”

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Can Internal Revenue Code Section 1202 Benefit You?

There is a generous tax benefit that only select taxpayers qualify for. Not well known, it is called ‘‘qualified small business stock,’’ or QSBS for short, and is found in Section 1202 of the Internal Revenue Code. Titled the “Partial Exclusion for Gain from Certain Small Business Stock,” it allows taxpayers to exclude gain from certain stock.

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