Board of Equalization
The California State Board of Equalization (BOE) administers tax programs in four general areas:
- Sales and use taxes
- Property taxes
- Special taxes
- Tax appellate program
The poor California economy has the BOE stepping up on delinquent tax collections, and the agency has been particularly assertive in sales and use tax matters. The agency imposes sales tax on gross receipts from retail sales, including vehicles, in California, while use tax applies to the use, storage or other consumption of those same items if they were purchased out of state but are used in the state. All businesses are required by state law to have a valid California seller’s permit.
To ensure businesses are in compliance and reporting all sales transactions, BOE agents often conduct field visits and audits to determine sales tax owed. Generally done on premise during business hours, agents scrutinize daily processes to determine whether taxable gross sales are being accurately tracked and reported. For example, an auditor might observe a cashier during a busy period to determine whether eat-in versus take-out items are being correctly rung up at a restaurant. If a business no longer in operation is audited, the BOE will often cast a wide net to make as many individuals as possible responsible for the sales tax liability.
Sales tax audits are usually extremely complicated and time-consuming for a business owner, and the BOE can issue impractical demands for document submissions and payment terms. Furthermore, a sales tax redetermination can trigger an IRS audit.
Brown, PC has exceptional experience and knowledge of California tax law and dealing with complex BOE tax issues, such as:
You do not have to deal with a BOE tax predicament alone. Brown, PC understands the frustration and anguish you are experiencing, and we are here to help. We represent clients in Los Angeles and throughout California. To discuss your state tax case with one of our attorneys, please contact the firm online or by calling 817-870-0025.