In California sales taxes are collected by the State Board of Equalization, which is often referred to as the SBE or the BOE. In recent years an increasing number of small to medium size businesses have been selected for sales tax audit. It appears that the government has become more aggressive in assessing and collecting sales taxes.
Often sales tax problems are due to a lack of adequate records. We can help to determine if your records are adequate and advise you on the reconstruction of missing records.
It is also important to note that a sales tax audit determination by the State Board of Equalization may also lead to an adjustment to your state and/or federal income tax returns. Since the State Board of Equalization may share information with both the Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB) it is important to dispute all erroneous sales tax audit adjustments.
A California sales tax audit, and its possible appeal is a very complicated process requiring knowledge of the California sales tax laws, as well as an understanding of the procedures of the State Board of Equalization. Hone Maxwell LLP can represent you from beginning to end with your California sales tax problems.