Running a business in itself is demanding, but on top of dealing with vendors, inventory and customers, you also have to comply with the state laws by retaining sales and use tax and filing quarterly returns.
The State Board of Equalization (SBOE) is the agency responsible for collecting and administering the sales and use tax in California. Sales tax auditors often conduct the audit process under the assumption that all businesses cheat and do not charge sales tax correctly. With this misconception in mind, the auditors tend to perform a variety of tests to determine how much the business owes, instead of analyzing whether or not the business actually owes anything.
A California sales tax audit, its appeal process and any litigation that may occur after that are very complicated, requiring not only extensive knowledge of the California sales tax laws, but also a deep understanding of the internal procedures of the agency conducting the audit. Brunoro Law has represented several small businesses during their sales tax audited, making sure the sales tax law are interpreted in the their favor and preventing the auditor from making unfair assumptions or erroneous projections about the business’s revenue.
Contact us today to see how we can help you during a sales and use tax audit.