Michelle Steele, a member of the Board of Equalization, in her newsletter reminded everyone that the BOE will be conducting Use Tax audits of small businesses. Use Tax is the equivalent of sales tax on purchases where sales tax is not charged. The Orange County Register recently ran an editorial urging the BOE to stop the “uglier than usual tax shakedown.”
Meanwhile, the Franchise Tax Board has put up an excellent page on their website noting the record-keeping requirements for various expenses. As I tell my clients, document, document, document! Keep those receipts.
The FTB also announced that they will be sending out “pre-suspension” notices to LLCs that have not paid their annual LLC tax and/or fees. Spidell reports that 23,332 noncompliant LLCs will receive the notices. If the fees and/or taxes are not paid within 60 days (generally, after March 2nd) the LLCs will be suspended.
With California essentially broke expect to see more stories regarding California tax agencies seeking to find every crumb of revenue.