You may be wondering how sales tax rates are set and why they seem to vary across the state. Here is a brief review of the sales and use tax and then we will break down how California sets its sales tax rate and the various elements that impact the rate.
Sales Tax
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.
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.
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.
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.
Why is Tax Compliance so Challenging for Cannabis Businesses?
Washington, Oregon, and California were among the first states in the country to legalize cannabis for recreational use.
Why Do I Owe State Taxes This Year? (& Why so Much?) 2022 Guide
If you haven’t had to pay any state taxes for the past few years but now face a liability, you might be wondering, why do I owe state taxes this year? It’s a pretty common question that many taxpayers struggle to find the answer to.
You may not even be aware that you owe state taxes this year. It all depends on how your income has changed over the previous year and whether you still have any credits or deductions available to you that were used previously to reduce your taxes.
Tax Return Demand from the FTB Intensifies
{{cta(’09b64408-9310-4451-9a41-0234b45d370e’,’justifyright’)}}Are you a marketplace facilitator or out-of-state business who has received a tax return demand from the California Franchise Tax Board? If so, read this before you respond. We’ve provided the essential background information you need to formulate a plan prior to your response.
The Good and Bad News For Amazon Sellers That Have Received CDTFA Notices
This week, Amazon disclosed Amazon seller information to the California tax authorities in response to a legal demand letter it received late last month.
Amazon Seller Disclosure To The California Tax And Fee Administration
Many Amazon sellers received an e-mail notification from Amazon this week with the subject “Disclosure to the California Department of Tax and Fee Administration” stating that Amazon has been served with a legal demand from the California Department of Tax and Fee Administration (CDTFA), and that the company has until November 6th to turn over all Amazon seller information and any tax identification numbers associated with those sellers.