On February 2, 2022, the California Department of Tax and Fee Administration (CDTFA) held an interested parties meeting (IPM) to discuss proposed amendments to sales tax audit manual (AM) Chapter 13, "Statistical Sampling," and Chapter 4, "General Audit.". Prior to the IPM, the CDTFA released a lengthy discussion paper outlining the CDTFA AUDIT MANUAL CHAPTER 2 DOWNLOAD CDTFA AUDIT MANUAL CHAPTER 2 READ ONLINE Division of Fairs and Expositions Accou… On February 2, 2022, the California Department of Tax and Fee Administration (CDTFA) held an interested parties meeting (IPM) to discuss proposed amendments to sales tax audit manual (AM) Chapter The California sales tax audit process is a highly fact-specific and it is highly fluid, depending on what is being audited, why it is being audited and so forth, but the important thing to note is that much of the audit itself is open to negotiation. Then, based on that agreed-upon plan, the auditor will give you a period of time, usually 30 Step One: Petition for Redetermination. You receive a Notice of Determination, which is a notification that the CDTFA has determined you owe more taxes than you paid. If you want to file a Petition for Redetermination, the first step of the appeals process, you must wait until this notice is issued. You have 30 days from the mailing date. In a pending precedential decision, the California Office of Tax Appeals (OTA) held that the California Department of Tax and Fee Administration (CDTFA) is bound to follow its own regulation and could not rely on its audit manual to disregard that regulatory authority. Regulation 1595 provides that the agency will use "book value" as the CDTFA Sales Tax Audits. The California Department of Tax and Fee Administration auditor will always make sure to distinguish between sales and use tax. Generally, the sales tax is the liability of the seller, whereas the use tax is the liability of the purchaser. A retailer who consumes merchandise purchased for resale under a valid resale The California Department of Tax and Fee Administration (CDTFA) is like the IRS in its ability to audit your state taxes. The CDTFA typically conducts audits in three-year intervals. There are several reasons that the CDTFA may target you for an audit; these include suspicions about you avoiding sales or use taxes as well as tips from outside sources. When it comes to sales tax audits, the CDTFA has established in its capacity that time is money, which is why its auditors will use short tests and sampling to abbreviate the process. There are a variety of testing methods, which I will describe in this chapter. In a nutshell, the auditor is going to take a "snapshot" of your business Procedures, definitions, taxability, and related topics for sales tax audits dealing with the oil and gas well servicing industry. Oil Well Servicing Tax Manual (PDF) - Revised 08/2017. Procedures, documentation, taxability, and related topics to assist in auditing well servicing companies. Sampling Manual (PDF) - Revised 05/2015. The Car Dealer's Guide To CA Sales & Use Tax Audits - Part 1 | Brotman Law. (619) 378-3138. Sam Brotman, JD, LLM, MBA February 9, 2022 12 min read. Sales Tax Audit Appeals Through CDTFA The process for appealing a CDTFA sales tax audit begins at the exit conference after the auditor has finished their investigation. If the audit report cites potential underpayment of taxes, fees or additional amounts you owe and you d