Tax Attorney Los Angeles » California State Board of Equalization

Sales Tax Tweet – California State Board of Equalization joins Twitter

Gary Slavett — Sun, 01 Aug 2010 08:03:50 +0000

Tired of following the exploits of Paris Hilton and Lindsay Lohan on Twitter? Looking for Tweets that actually may be useful for your business? Now you can receive updated California sales and use tax news by following the Tweets of the California State Board of Equalization.

In a news release, the California State Board of Equalization announced that “[t]he California State Board of Equalization is now using Twitter to provide Californians with the most recent and useful news from the BOE. As technology continues to expand, and more and more people get their news from the Internet and social networking sites, it is increasingly important to increase BOE’s efforts to get information to the public as quickly as possible. Twitter is another helpful tool for the BOE to keep businesses and taxpayers informed and updated on the latest news and information from the BOE.

Follow the BOE at twitter.com/CA_BOE_News to get alerts about rule changes, emergency relief for taxpayers, and other updates on sales and use tax, special fees, and property taxes.”

Former IRS Tax Attorneys at Holtz Slavett & Drabkin are available to assist you with your sales tax issues.

Author: Gary M. Slavett, J.D., LL.M., Former IRS Attorney.

California Board of Equalization NOTICE TO APPEAR Letter (BOE-420-R) — What you need to know if you received this letter

David Holtz — Mon, 10 Aug 2009 23:22:37 +0000

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:

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.

Copyright © David C. Holtz 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts of text and links may be used, provided that full and clear credit is given to David C. Holtz with appropriate and specific direction to the original content at http://www.hsdtaxlaw.com/.

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

David Holtz — Thu, 06 Aug 2009 17:56:50 +0000

BOE-1246-B Final Notice Before Prosecution

On May 13, 2008, the Chief Counsel of the State Board of Equalization issued its legal opinion supporting the Board’s program to pursue criminal violations of Revenue and Tax Code Section 6071 (engaging in a sales business without a valid California seller’s permit) by using the Board Investigation Division employees rathar, than exclusively pursuing prosecution by referring violations to the District Attorney’s office. As result of this program, the California State Board of Equalization has recently increased the volume of taxpayer’s that are being pursued criminally for violations of section 6071. If you have received a BOE-1246-B Letter, FINAL NOTICE BEFORE PROSECUTION, from the California State Board of Equalization (“BOE”), then the BOE is in the process of pursuing you under this program.

It is a crime in California punishable with a fine of up to $5,000 and/or a sentence up one year in jail for engaging in a business without a valid California seller’s permit. In particular, pursuant to Revenue and Taxation Code Section 6071 and 7153:

Any person who engages in a business as a seller in the State of California without a valid California seller’s permit is guilty of a misdemeanor punishable by a fine up to $5,000 and/or sentenced up to one year in jail for each violation.
Each officer in a corporation that is violating this law may also guilty of a this crime punishable by a fine up to $5,000 and/or sentenced up to one year in jail for each violation.

Failure to have a valid seller’s permit commonly occurs after the State Board of Equalization revokes or suspends a seller’s permit on the basis that sales tax returns have not been filed and/or sales and use taxes has not been paid. However, it also occurs where a seller fails to obtain a seller’s permit.

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

The issuance of the BOE-1246-B Letter, FINAL NOTICE BEFORE PROSECUTION, is a part of a criminal prosecution program intended to encourage compliance with the sales tax laws in the State of California. The State of California has announced that it will refer a case for criminal prosecution approximately 4 months after the account was revoked, or appoximately 9 months after the account became delinquent.

If you have received the BOE-1246-B Letter, FINAL NOTICE BEFORE PROSECUTION, then you are in the process of being referred for prosecution for violation of the sales tax laws. In order to avoid referral for prosecution, the tax law compliance dispute with the State Board of Equalization must be resolved quickly.

If you do not resolve the matter with the State Board of Equalization, then your case will be referred to the Criminal Investigation Division and a California BOE-1248-B Letter, NOTICE OF REFERRAL FOR CITATION AND PROSECUTION, will be issued.

In approximately 30 days after being referred to the Criminal Investigation Division, your case will be assigned to a criminal investigator. The investigator will verify that sufficient criminal knowledge and intent exists. The investigatory will interview you and provide you with a pamplet entitled “Criminal Prosecution for Failure to Possess a Valid California Seller’s Permit” providing you five business days to remedy non-compliance before being prosecuted.

In addition to the above penalties and jail time, you may be liable for the sales taxes, interest and other civil and/or criminal penalties.

Caution: If you have other audit risks because of non-compliance with other tax laws such as federal or state income tax or employment tax laws, then this prosecution program may expose your books and records to further scrutiny.

Caution: You have rights and privileges which may be waived if you do not take proper steps protect yourself in this proceeding, such as the 5th Amendment Protection Against Compelled Self-Incrimination. A waiver of such rights during this proceeding may be viewed as waiver for other proceedings and may have very broard negative impact.

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:

Before prosecution for a sales without a California Seller’s Permit, it is the State Board of Equalization policy to issue notices in the following order:

Legal Material:

California Revenue & Taxation Code Section § 6071 – Doing business without permit:

A person who engages in business as a seller in this state without a permit or permits or after a permit has been suspended or revoked, and each officer of any corporation which so engages in business, is guilty of a misdemeanor, punishable as provided in Section 7153.

California Revenue & Taxation Code Section § 7153 — Grade of offense; Punishment.

Any violation of this part, except as otherwise provided, is a misdemeanor. Each offense shall be punished by a fine of not less than one thousand dollars ($1,000) and not more than five thousand dollars ($5,000), or imprisonment not exceeding one year in the county jail, or both the fine and imprisonment in the discretion of the court.

Other Helpful Material:

California Seller’s Permit Application, Publication BOE-400-SPA

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

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