Avalara Taxrates > Blog > Sales Tax News > California Bill Makes Tax Evasion Harder - Avalara

California Bill Makes Tax Evasion Harder

  • Oct 7, 2011 | Susan McLain

California is now imposing stricter restrictions on a business’s ability to do business in the state if tax delinquency is found. Governor Jerry Brown signed AB 1424 into law October 4, 2011. In order to extend the reach of delinquent tax collections, the state of California will now “…make available a list of the 500 largest tax delinquencies” rather than only the top 250. The bill empowers the state to revoke or suspend a professional license such as a business or driver’s license of the delinquent taxpayer or business.

According to the amendment, “The State Board of Equalization…[shall] submit its respective certified list to every state governmental licensing entity. The certified lists shall include the name, social security number or taxpayer identification number, and the last known address of the persons identified on the certified list.” When an applicant for any type of license with the state is found to be on the list, they will be informed of the intent to suspend or withhold issuance or renewal of their license.

In order to receive a release from the restriction, businesses or individuals must comply “…with the tax obligation by payment of the unpaid taxes, or entry into an installment payment agreement, or establishing the existence of a current financial hardship….”

According to the most recent report (which was still 250 top delinquent businesses), “Since the inception of this program, 37 qualifying taxpayers whose account balances with BOE represent a total of $39.8 million in sales and use tax liabilities have come forward to take care of their debts.”

As states expand their ability to curb tax evasion, fraud and simple mistakes in calculation, businesses need to become more diligent in maintaining sales and use tax compliance. Avalara’s AvaTax makes staying compliant easy.

Learn more about reducing your business risk of an audit. Call 877-780-4848 or visit www.avalara.com today.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”