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Anyone got a CA business? Compliance checks.

Anyone got a CA business? Compliance checks.

Old Sep 4th 2016, 8:52 pm
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Default Anyone got a CA business? Compliance checks.

Just received a letter informing me that The Board of Equalization Compliance Team are coming to my area to do door to door compliance checks.

Apparently they check if you have proper sales licenses and permits.
They will then question you on your business processes and 'advise' and provide 'guidance' to determine if you have paid your taxes correctly. From some it sounds like a mini-audit devised to get every last penny and is rather stressful.

Fortunately, at least in my case, they only visit non-residential/store front businesses. (I work from my home office.)

I did wonder about the legality of all this but I suppose if you're running a retail business then you are 'open' for visits whereas if you work from home they can't really demand access to your place, unless they're doing a formal field audit.

If it's relevant to anyone here's a link to their agent operations manual.

http://www.boe.ca.gov/sutax/manuals/cpm-10.pdf
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Old Sep 4th 2016, 9:27 pm
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Default Re: Anyone got a CA business? Compliance checks.

Sounds like most of your answers should be "I would need to speak to my lawyer", or "I would need to speak to my accountant".

Welcome back BTW. I was wondering where you'd got to.

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Old Sep 4th 2016, 9:58 pm
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Default Re: Anyone got a CA business? Compliance checks.

Thank you Mr. P.
Two things really, running the business, which takes most of my focus. (I shouldn't let myself get as distracted by this 'ere site as much as last time.)

Also, had planned on moving to NH to get three seasons more than we have here and be halfway back to the UK, then spanner in the works. Mrs H found out that, even as she's keen to leave teaching, if she does three more years we get permanent health insurance even after she does leave. (At least until Medicare.) Far too good to turn down...so stuck in CA for the duration.

Just have to make the best of it...

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Old Sep 4th 2016, 10:02 pm
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Default Re: Anyone got a CA business? Compliance checks.

My husband works in CA, but only from home and/or site visits away from home. It's labor, not retail. For some reason CA tax thought it was retail, and for several years in a row he received those notices from Board of Equalization. It finally took our accountant to write up the proper wording, along with proof of the type of business it is, to get them to stop sending those.

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Old Sep 4th 2016, 10:09 pm
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Default Re: Anyone got a CA business? Compliance checks.

Thanks Rene...I think if you're selling something be it labor, services, products then the Compliance checks are applicable, but only for nonresidential it says in my letter.
I'd like to see one of them try to barge in to my house without a warrant.

Interesting thing is, I wouldn't be surprised if I was on their radar. Large revenue but minimal sales tax as I generally sell to the US Government in various research labs around the country. And they are tax exempt.
Sometimes I wonder if I should contact them to explain the nature of my business but then again if they want to know they can ask politely. Just not at my house.
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Old Sep 4th 2016, 10:50 pm
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Default Re: Anyone got a CA business? Compliance checks.

Originally Posted by Hotscot View Post
.... Interesting thing is, I wouldn't be surprised if I was on their radar. Large revenue but minimal sales tax as I generally sell to the US Government in various research labs around the country. And they are tax exempt.
Sometimes I wonder if I should contact them to explain the nature of my business but then again if they want to know they can ask politely. Just not at my house.
Under your circumstances, I'd discuss it with my lawyer, and have him/her primed to send a letter if the question is ever asked.
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Old Sep 4th 2016, 11:11 pm
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Default Re: Anyone got a CA business? Compliance checks.

I should have also noted that the business is located in AZ, so he pays AZ state tax, so is exempt from CA state tax. Our accountant sent proof that tax was already paid in AZ. Or something like that ... I'm not an accountant. LOL

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Old Sep 4th 2016, 11:39 pm
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Default Re: Anyone got a CA business? Compliance checks.

Originally Posted by Pulaski View Post
Under your circumstances, I'd discuss it with my lawyer, and have him/her primed to send a letter if the question is ever asked.

Oh thanks...send me your lawyer's details then..
(And try to clarify their gender.)
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