California Tax Attorneys
If you are involved in a San Diego or California business, it is highly likely that you will eventually be contacted by the California Board of Equalization, or BOE, for sales and use tax audits. The sales and use tax audit is a much more intensive and deep audit of your business, its transactions and the collection and payment of California sales (and, when applicable, use) tax. You should not represent yourself in an IRS audit, or any California tax audit. A BOE sales and use tax audit may be the most complex audit you will face, and the financial exposure of you and your business cannot be understated.
This is why it is important to contact the experienced and diverse tax, accounting, business and legal experts at Allen Barron if you have been contacted by the BOE or notified of a sales and use tax audit. This audit will analyze every aspect of your business, its transactions and the sale of goods and services. The underlying accounting and taxation principles can be quite complex, and the nature of every step within your business process will be reviewed and challenged.
It is not unusual for the BOE to request extensive accounting records, including, but not limited to:
- Bank Statements
- General Ledger Transactions
- Inventory Reports
- Accounts Receivable
- Payables and Disbursements
- Credit Card Transactions
- Cash Receipts
It is important to understand the nature of the information requested and the ultimate strategy of the BOE in the sales and use tax audit. It is important to provide extensive information while protecting your company’s interests and limiting contingent exposure.
For example, if your business integrates components from several different sources to create a bundled offering or an integrated offering of products and services, there are some supplies which are not included in the taxable basis for the ultimate sale. Allen Barron provides a single source for all professional services and expertise required to endure and achieve a positive outcome in a BOE sales and use tax audit. Our accounting and tax preparation staff can help to analyze the data requested by the BOD analysts and provide the extensive documentation and underlying accounting principles and California law to defend and protect your interests.
Lawyers for California Sales and Use Tax Audits
The sales and use tax audit lawyers at Allen Barron can extend the protections of the attorney-client privilege to our sales and use tax audit clients. This strong legal protection is not available through a CPA or accounting firm, and it extends to all information and communications exchanged between your company and our firm. We are uniquely positioned to help you to fend off the “fishing expeditions” common in these audits, and to establish a strong position based upon California tax law and generally accepted accounting principles.
This audit will be intensive, and it is usually conducted in our client’s offices or in our offices. Most clients prefer Allen Barron to engage the BOE to protect their interests as the agency reviews all business gross receipts and sales transactions, as well as the processes that govern the collection of sales and use taxes.
You May Be Personally Liable for the Sales and Use Tax Debts of the Company
Many business owners do not comprehend the nature of their personal exposure in these matters. The protections of the corporate veil may not extend to you personally, especially if the business is not successful and a sales and use tax debt remains unpaid. The BOE will provide a questionnaire to the owners, managers and officers of your company, and those who played a role in the collection, reporting and payment of sales and use taxes may remain personally liable for any deficit identified during the audit, even if the business is no longer in operation.
Protect Yourself and Your Company in a BOE Sales and Use Tax Audit
If you have been contacted by the BOE regarding a sales and use tax audit, we invite you to contact the experienced California tax attorneys and accounting professionals at Allen Barron for a free and substantive consultation at 866-631-3470. We have the expertise, credibility and experience to achieve the best possible outcome in your audit, and to protect your corporate and personal interests along the way.