The sales and use tax audit is more feared among taxpayers and their tax attorneys, accountants or other tax professionals than an IRS tax audit or State income tax audit. The reason for this fear is that the Board of Equalization’s (Board) sales tax auditor is generally the only trained expert in this highly technical area of taxation. Additionally, their aggressive administrative tactics in performing audits, assessing, and collecting substantial amounts of tax, interest and penalties are significantly flawed.
In its own Annual Report, the California State Board of Equalization (Board) boasts of tax assessments of additional sales and use tax liabilities at a rate of approximately $500.00 per audit hour. This means that on the average, California businesses are being assessed an average of about $4,000.00 each day their records are being audited. Generally, if the tax auditor is there for more than one day, you have a tax problem.
This incredibly high assessment rate and the tax dollars recovered per hour should not be viewed as a negative reflection of the taxpayer or their tax professional’s overall competency. Instead, it should be seen as a red flag; a warning for the uninformed and unsuspecting tax-paying public and their tax representatives.
Unlike Federal and State income taxes, comprehensive education or training on sales and use tax reporting standards, compliance procedures or record retention requirements are astonishingly limited. Without this critical knowledge and proper training, it is virtually impossible to effectively argue any disputed tax liability before the Board.
The Board is an aggressive taxing agency which often times wins by intimidation. Stop being intimidated! Browse through this website or contact one of our sales tax experts at (916) 369-1212, to discover how California Sales Tax Consultants, Inc. can help you navigate the complexities of the Board of Equalization Audit.
OUR MISSION IS TO MAINTAIN OUR LEADERSHIP IN PROVIDING A WIDE VARIETY OF SALES AND USE TAX SOLUTIONS FOR OUR CLIENTS. WE WORK IN CLOSE PARTNERSHIP TO EXPAND AND IMPROVE EACH OF OUR CLIENT’S BUSINESS OBJECTIVES. WE CELEBRATE WITH OUR CLIENTS THE RESULTS OF OUR COMBINED EFFORTS TOWARDS MEETING THEIR BUSINESS STRATEGIES, PROJECTED GROWTH AND FINANCIAL STRENGTH. WE COMMIT OURSELVES TO WORKING METICULOUSLY, PROVIDING LEADING EDGE TAX REPRESENTATION ON A TIMELY AND EFFICIENT BASIS, WHILE MAINTAINING THE HIGHEST MORAL STANDARDS, BUSINESS INTEGRITY AND PROFESSIONAL ETHICS. WE WILL CONTINUE TO MAINTAIN AND EXPAND UPON OUR 50-YEARS OF COMBINED AND SUCCESSFUL RECORD OF MEETING AND ULTIMATELY EXCEEDING OUR CLIENT’S EXPECTATIONS.
Taxpayer Advocacy Articles
Micallef vows to change Board of Equalization, Elk Grove Citizen, April 15, 1998
Court sides with firms disputing state levies, The Sacramento Bee, November 13, 1992
Micallef vows to help state taxpayers save, Elk Grove Citizen, April 29, 1994
Reformer seeks seat on state’s tax board, The Sacramento Bee, February 4, 1998
Tax Hearing sites too distant, suit claims, The Sacramento Bee, April 6, 1994
Rulings blasting tax board for ‘secret law’ will stand, The Sacramento Bee, February 4, 1993
3 vie for seat on little-known state tax commission, The Sacramento Bee, May 29, 1998
Fighting state tax board is a shot in the dark, The Sacramento Bee, April 14, 1991
Auditor’s refuse businessman’s request to record meeting, The Camarillo Daily News, October 4, 1992
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DH Law Corporation