California: BOE Giveth and Taketh Away
- Sales Tax News
- May 19, 2014 | Gail Cole
The California State Board of Equalization (BOE) Taxpayer Education Consultation Program provides an opportunity for new business owners to learn from experienced BOE consultants. Failure to comply with California sales tax law can lead to denial of an application for a seller’s permit.
Advice freely given
To be eligible for the Taxpayer Educational Consultation Program, a business must have been in business for less than one year and have filed at least two sales and use tax returns with the BOE. A BOE consultant will visit all program enrollees and:
- Review business operations, recordkeeping, and tax preparation systems;
- Share methods to correctly file sales and use tax returns;
- Answer questions about sales and use tax and the BOE.
Sales tax permits taken away
Effective July 1, 2014, the BOE will have the power to refuse to issue a seller’s permit to “a person with an outstanding final liability,” or to “a non-natural person if a person with an outstanding final liability controls the non-natural person.” This is to be achieved by amending Regulation 1699, as explained in this updated informative digest.
The action is not intended to be punitive. Rather the goal is to help “applicants with outstanding final liabilities and applicants controlled by a person with an outstanding liability clearly understand that their applications for seller’s permits will not be denied… if they take appropriate steps to pay the final liabilities, including by entering into an installment payment agreement or offer in compromise, so that the liabilities are no longer ‘outstanding’.”
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