State Board of Equalization Steps Up Compliance Actions

Sacramento – Retailers and businesses in California were sent more than 9700 letters by the Board of Equalization (BOE) notifying them of Statewide Compliance and Outreach Program (SCOP) Team visits to educate business owners on sales and use tax reporting responsibilities, increase tax compliance, and to help make our tax system fair and equal for all Californians.

California businesses receiving letters this month are located in the following 12 zip codes: Whittier (90601 and 90604); Van Nuys (91401); El Cajon (92019); Placentia (92870); Salinas (93906); Concord (94520); Wilton (95693); Elk Grove (95757 and 95758); and Chico (95927 and 95928).

Since 2008, the BOE SCOP Teams have visited more than 282,000 businesses in 397 zip codes statewide to verify that retailers and businesses are registered and to make sure that noncompliant businesses do not have an unfair advantage over registered businesses that are reporting their sales and use taxes and/or fees to BOE.

Seven SCOP Teams located statewide (Oakland, Sacramento, San Jose, Van Nuys, Norwalk, Irvine and Riverside) conduct door-to-door in person visits based on zip code and check seller’s permits at stores and other known retail and business locations. Business owners are asked only business-related questions but the SCOP Team does not inquire about personal financial information. Registered retailers, as well as service industry businesses, are checked for appropriate permits and licenses. Businesses found to be out of compliance are given instructions on how to register with the BOE and given information about other necessary licenses.

BOE has found that about 2 percent of businesses operating in California do so without permits or licenses that allow for collection of sales and use taxes and other taxes and fees. Noncompliance is a contributor to the more than $2 billion sales and use “tax gap” which is the difference between the amount of taxes owed and the amount of taxes paid.

If business owners have questions, they may contact their local SCOP Team field offices located in Oakland, Sacramento, San Jose, Van Nuys, Norwalk, Irvine and Riverside http://www.boe.ca.gov/sutax/SCOP_ContactInfo.htm.

For general information, contact the Taxpayer Information Call Center at 800-400-7115. For more information, visit www.boe.ca.gov/sutax/SCOP_Overview.htm.

The five-member California State Board of Equalization is a publicly elected tax board. The BOE collects more than $50 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit www.taxes.ca.gov.