CDTFA Sales Tax Audit Representation

Sales for resale are among the most frequently targeted categories in a California sales tax audit. The most popular deduction taken by California taxpayers for sales for resale is also one of the most frequently targeted by the California Department of Tax and Fee Administration (CDTFA). Tax auditors of the CDTFA are particularly cautious when assessing the accounting techniques used by taxpayers and apply a variety of techniques to confirm figures. When the auditor applies their verification processes, California taxpayers who estimate this deduction frequently find themselves the target of a CDTFA sales tax audit.

You will have an opportunity with the XYZ letter process if you are unable to present the resale certificates. All of your customers will receive "retroactive resale certificates," which will be prepared by the CDTFA. The goods won't be taxable if the consumer signs the XYZ letter; but, if they are lost or refuse to sign, you will be liable for the sales tax.

Let us represent you before the CDTFA if you are the subject of a CDTFA audit. We will argue your case and defend every allowable deduction under the audit. We are dedicated to collaborating with you and giving you the knowledge, counsel, and direction you require. Please give us a call as soon as you receive a CDTFA audit notification so that we can start working on your case while the audit is still in its early stages.