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 that 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:
- Delinquency Notice
- BOE-420-R Letter, Notice to Appear
- Notice of Pre-prosecution Hearing
- Final Notice Before Prosecution
- Notice of Request for Citation/Prosecution
- Pamphet “Criminal Prosecution for Failure to Possess a Valid California Seller’s Permit“
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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