Brotman University – Sales Tax

Risks For Your Small Business in a California Department of Tax and Fee Administration Audit

Before going any further in the process, we should address the risks associated with a California Department of Tax and Fee Administration audit.

What Triggers a Sales Tax Audit in California?

A sales tax audit occurs when the CDTFA suspects a business’s reported sales have been understated. Most commonly, this occurs in situations where there is a “mismatch” or an incongruency between the sales tax returns filed with CDTFA and what was reported to other agencies (like the IRS).

What Is California Sales Tax?

Most people are quite familiar with the concept of sales taxes on a very basic level. After all, we all buy stuff and, when we do, there is a tax associated with those purchases.

The Ultimate Guide to California Sales Tax Audits

Our law firm has dedicated the time and the resources to creating our complete guide to California sales tax audits. We wanted to put together the best resource on the internet for taxpayers faced with the prospect of a CDTFA audit

Use Tax vs Sales Tax in California: Differences Compared

Need a use tax vs sales tax in California comparison? The main difference between use tax and sales tax is who is collecting the tax.

How the California Sales Tax Rate is Determined

California sales and use tax laws can be very confusing. In this post, attorney Sam Brotman explains the details around sales tax laws and how rates are set.

The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 4

Used car dealers are not required to maintain certain types of records. This ends up being a major pitfall for most independents. Poor record keeping practices can land you in hot water once a tax audit rolls around.

The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 3

Are you a car dealer facing a California sales tax audit? Failure to apply the appropriate special district rate can result in collecting the wrong amount of sales tax. Auditors routinely look here first for sales tax mistakes.

The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 2

Are you a car dealer facing a California sales tax audit? In Part 2 of our complete guide, you'll learn how one improper tax assessment can cost you many times over.

The Car Dealer’s Guide To CA Sales & Use Tax Audits – Part 1

Are you a car dealer facing a California sales tax audit? Start reading! Part 1 of our guide discusses how the CDTFA selects car dealers for audit.

Why is Tax Compliance so Challenging for Cannabis Businesses?

Since the cannabis industry is a high-impact compliance area, it is highly likely that the IRS will want to conduct the audit in person, especially given the IRS’ interest in the cash portions of the business.

Why Do I Owe State Taxes This Year? (& Why so Much?) 2022 Guide

If you haven’t had to pay any state taxes for the past few years but now face a liability, you might be wondering, why do I owe state taxes this year?

What Is a California Sales Tax Exemption?

It is important to understand which types of business can get a partial or full sales tax exemption. Here are some examples of what to look for.

Your Rights as a California Taxpayer

Knowing and exercising your rights during a tax audit can reduce the tension caused by a stressful California sales tax audit.

Establishing Residency or Domicile in California Can Be Taxing

Did you know that a 2020 California FTB guideline states “if you are impacted by the COVID-19 pandemic, it is one of the factors we will consider as we apply the general rules for residency and income sourcing?”

What Are the Penalties for Tax Evasion and Tax Fraud in California Sales Tax Audits?

“Fraud” is defined as acts with intent to deprive state of taxes due under the law. Intent to evade is intent to escape paying tax through misrepresentation or deception.