Sales Tax Audits
State of California through the Board of Equalization (BOE) has started an expanded program to select many small to medium size businesses for sales tax audit. Our experiences with the BOE evidenced that the government has become even more aggressive in recent years in assessing and collecting sales taxes. In California, the BOE has conducted more than 60,000 audits and collected hundreds of millions of dollars in taxes in recent years.
In addition, through the audit investigations, State Board of Equalization has also initiated much more criminal tax fraud actions against individuals and businesses. It is extremely important that small business owners approach every sales tax audit cautiously.
Businesses that are located outside of California may also be subject to California Sales Taxes based on nexus to the state. Many business owners who are located out side of California are audited every year by BOE.
Tax Lawyers Group, APC, has represented clients in criminal sales tax prosecutions and can advise you to keep your sales tax problems from turning into a criminal case.