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Employee Reimbursements in a California Payroll Tax Audit

  One of the biggest problems that we come across in payroll audits is employee reimbursements. A lot of the times what will happen is an employee will get paid a normal paycheck and then they will spend their own money outside the context of the business to buy materials, to buy supplies, go post […]

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1099 Worker Verification in a California Payroll Tax Audit

  The next step that the EDD takes in a California payroll tax audit is that they go through and they verify 1099 workers. They’re going to go through each 1099 worker in detail. Even with businesses that have a category of 1099 worker or even if the 1099 is not actually a worker, it’s […]

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Penalties in Sales Tax Audits

  I want to talk now about the penalties that are associated with sales tax audits. Within California, and with most other states, there are two types of penalties. There are mandatory penalties and there are discretionary penalties. Those penalties range anywhere from 10 percent to 50 percent to 75 percent, or potentially greater depending […]

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Sales Tax Audits for Car Dealerships

  I want to talk a little bit now about the auto dealership industry, which get audited all the time for sales and news tax issues. The biggest problem with the auto industry is that there are a lot of shady players, so to speak, who are not doing everything correctly. There is a natural […]

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Taxable or Nontaxable Labor in Sales Tax Audits

One of the hot topics within the Department of Tax and Fee Administration and within sales tax, in general, is taxable labor or taxable and nontaxable labor. There are basically two distinctions for how labor is taxed. You have exempt labor which is like installation labor or could repaired or reconditioning and then you have […]

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How Sales Tax Audits Work in California

  I’d like to talk next about how sales tax audits work. Sales tax audits are one of the areas that most practitioners and a lot of clients are probably most confused about. Whereas income tax audits are fairly precise, sales tax audits are based on variety of data and are calculated by much different […]

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Franchise Tax Board Notice of Proposed Assessment

Let’s talk briefly about Franchise Tax Board notices of proposed assessment. A notice of proposed assessment is a letter that is issued by the state when they intend to assess you a tax liability that you did not report. One method of the way you get a tax liability is if you file a return […]

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California Tax Agent Collections and Asset Location Tools

I’d like to talk to you about is how the State of California locates taxpayers and their assets. State collections agents have gotten a lot more creative, and have access to a lot more information that they did in the past. Part of the reason they have access to this information is because most that […]

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Procedures for California State Tax Collection Agents

Briefly, I’d like to talk a little bit about what procedures are inbounds and out of bounds for California collection agents. For the most part, California collection agents are expected to be courteous. They are expected to expeditiously move their cases through the state collections procedures, and they are expected to try and work with […]

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Tax Collection Tools that California Uses

I would like to talk to you a little bit about California state collection matters, in particular, dealing with the Franchise Tax Board here in California, the Employment Development Department which covers payroll matters and the Board of Equalization. We’re going to speak through generally when talking about these types of issues. That will facilitate […]

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