The BOE is sending letters to businesses with at least $100,000 in business gross receipts who are not already registered with BOE and do not hold a seller's permit. This means all businesses, regardless of business type (including tax practices), must register.

The letters state that the BOE has identified these businesses as qualified purchasers subject to a use tax return filing requirement (even if no use tax is due). Businesses that receive the letter must complete the contact info and mail it to the BOE. The BOE will then register the business and send them an account number and log-in information so that they can e-file their returns. The 2009 returns are due April 15, 2010.

Taxpayers who did not report use tax for 2007 and 2008 must file returns to report and pay that tax. We believe this is the first step in an audit process that will continue indefinitely.

SingerLewak can prepare worksheets for clients to track use tax liabilities and checklists for practitioners to easily get needed information. Please contact your local Tax Partner:

Please click here to find out more about our Tax+ program.

 

YOUR USE TAX SPECIALISTS Steven J. Cupingood, Partner SCupingood@singerlewak.com Javier Ramirez, Partner JRamirez@singerlewak.com Mark G. Cook, Partner MCook@singerlewak.com Daniel B. Faulk, Partner DFaulk@singerlewak.com Michael Wu, Partner MWu@singerlewak.com

OUR TAX GROUP Mark G. Cook, Partner Steven J. Cupingood, Partner John A. Eckweiler, Partner Daniel B. Faulk, Partner Andrew L. Gantman, Partner Donald G. Leve, Partner Richard A. Linder, Partner Javier Ramirez, Partner Thomas E. Wendler, Partner Michael Wu, Partner

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein.

Notice: Opinions, conclusions, and other information in this message are not intended to represent recommendations or advice to you or any other person. Each person's circumstances are unique, and we strongly suggest you discuss your specific situation with your professional advisor before taking any action based on the information herein or information to which this message refers.