Sales Tax Archives - Page 2 of 3 - Brotman Law - All Rights Reserved | 402 W Broadway, Suite 800 • San Diego, California 92101

Sales Tax Mistakes to Be Aware of and How to Avoid Them

August 12, 2024May 3, 2017 by Brotman Law

As a retailer or other seller of products, you have a lot of details to attend to but one of the most important, often most complex, is your sales and use tax obligations. Sometimes determining sales tax is like peeling an onion; just when you think you have found all the nuances, there is another layer to contend with.

Non-payment of sales and use tax comes with stiff fines, potential jail time, and repayment requirements. Avoiding all that is essential to both your business and your well-being.

What Sales Are Subject to Sales Tax?

August 12, 2024April 19, 2017 by Brotman Law

Nearly all states in the U.S. charge sales tax on items sold, California is no different in that regard. Sales taxes go into the general fund to help pay for education, health care, public pensions, and other programs. Sales taxes can also be collected for special programs or specific areas of the state.

Your Rights as a Taxpayer with the Board of Equalization

August 12, 2024March 29, 2017 by Brotman Law

The Board of Equalization (BOE) administers the tax program for both business and property taxes for the State of California. Business taxes include:

Sales and use tax
Fuel tax
Cigarette tax
Alcoholic beverage tax

Business taxpayers may take up their concerns directly with the main office of the BOE while property tax concerns are addressed by the local county office.

When you deal with the tax agencies of California, you may feel like you do not have any rights. These agencies can be aggressive and overwhelming to most individuals unused to dealing with them.

How to File an Appeal with the California Board of Equalization

August 12, 2024February 1, 2017 by Brotman Law

The California Board of Equalization has audited you and found potential underpayment of taxes, fees, or additional amounts the BOE determines you owe.

Your next step is to meet with the BOE supervisor and then the District Principal Auditor. If you do not convince them that the results are in error, you can file an appeal.

What is a Sales Tax Nexus and How Does It Affect My Business?

August 12, 2024January 18, 2017 by Brotman Law

A state may create legislation requiring a seller with nexus in that state to pay tax on sales of tangible property within the state.

What is nexus and how does it affect your business?

California Tax Guide for Marijuana Businesses and Proposition 64: The Adult Use of Marijuana Act

August 12, 2024November 16, 2016 by Brotman Law

On Tuesday, California voters passed historic legislation by voting to allow the recreational use of marijuana in California. Regardless of your opinion about marijuana use, the legislation will have a huge impact on the state of California and its citizens and will bring a large source of new taxable revenue into the state. Because of the complexity surrounding the tax laws surrounding the new measure, I have put together a rough guide of issues for marijuana businesses and California citizens to be aware of.

CDTFA Sales Tax Audits, Pt 4: After the Audit

August 12, 2024September 28, 2016 by Brotman Law

Here is the final installment of our four-post series about California Sales Tax and Use Audits. In Part 1, we cover how audits are triggered and companies selected for audit. Part 2 is about how the audit is conducted and the types of documents you may be required to provide. Part 3 gave you some tips for working with an auditor and the type of investigation an auditor may perform.

In Part 4 we take up what happens after an audit is complete, and how an experienced tax attorney can help you through the process of an audit by the California Department of Tax and Fee Administration.

CDTFA Sales Tax Audits, Pt 3: How to Prepare for an Audit

August 12, 2024September 21, 2016 by Brotman Law

Welcome to Part Three in the CDTFA sales tax audit series. In Parts One and Two, we provided an overview of how an audit is conducted and how companies are selected for audit as well as audit procedures and techniques.

Now you will learn how to prepare for an audit, including how to work with an auditor and which records and documents to have ready. You will also read about audit testing and sampling as well as the PAPE program and cut-off techniques.

One note before you begin your preparations: be ready to comply with auditor requests but do not volunteer additional information. Do not sign anything without careful examination because the auditor is unlikely to explain the consequences or agreements; it is up to you to research and clarify what you do not understand.

CDTFA Sales Tax Audits, Pt 2: Audit Procedures and Techniques

August 12, 2024September 14, 2016 by Brotman Law

This post is the second in a four-part series explaining how the California Department of Tax and Fee Administration (CDTFA) performs its audit function, what to expect from an audit, how to prepare for it, and what happens when the audit is complete.

The first post of this series explained the role of the CDTFA and the goals of a sales tax audit. It includes when an audit can occur, how companies are selected for audit, and common audit triggers.

This post takes up how the audit is conducted, what records are requested, and the type of tests auditors use to verify tax filings.

CDTFA Audits, Pt 1: What Is an Audit and How Are Companies Selected?

August 12, 2024September 7, 2016 by Brotman Law

This post in one in a four-part series explaining how the California Department of Tax and Fee Administration (CDTFA) performs its audit function, what to expect from an audit, how to prepare for it, and what happens when the audit is complete.