California State Board of Equalization BOE-420-R Letter, Notice to Appear

In 2008, the California State Board of Equalization initiated a program to increase prosecution of violations California Revenue and Tax Code section 6071 (engaging in a sales business without a valid California seller’s permit).  If you received BOE-420-R Letter, Notice to Appear, then the State Board of Equalization has determined tha t you are conducting sales in California without a valid California seller’s permit.  You are in the early stages of a compliance program that may ultimately result in a criminal prosecution.

The penalty for violating R&T Code Section 6071 is a fine up to $5,000 and/or a sentence of up to one year in jail for each offense.  Each officer in a corporation that conducts sales in California without a valid seller’s permit may be prosecuted under this provision and may be fined up to $5,000 and/or with one year in jail for each violation.

Before prosecution for a suspended or revoked California Seller’s Permit, it is the State Board of Equalization policy to issue notices in the following order:

1. Delinquency Notice
2. BOE-420-R Letter, Notice to Appear
3. Notice of Pre-prosecution Hearing
4. Final Notice Before Prosecution
5. Notice of Request for Citation/Prosecution
6. Pamphet “Criminal Prosecution for Failure to Possess a Valid California Seller’s Permit“

David C. Holtz, J.D., LL.M., Former IRS Attorney

Form more information read, California State Board of Equalization is Increasing Criminal Prosecutions. What You Need to Know If You Received a BOE-1246-B Letter, FINAL NOTICE BEFORE PROSECTION.

Author:  David C. Holtz, J.D., LL.M., Former IRS Attorney 

If you have any questions, please call (310) 550-6200.

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