If you owe sales and use tax to California, either because you purchased tangible personal property for use in California, or you are an out-of-state seller that failed to collect use tax on sales to California customers, you may qualify for the California Department of Tax and Fee Administration (CDTFA)’s Voluntary Disclosure Program. The time to act is before you receive an inquiry from the tax agency regarding your compliance. The CDTFA rewards those who voluntarily come forward with a review period limited to only three years, instead of the normal eight-year period of review. Additionally, penalties for the late filing and late payment may be waived.
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If you have questions regarding a Voluntary Disclosure Program, please contact our office. Our attorneys may be able to help.