With its complex sales and use tax laws and audit procedures, a California Department of Tax and Fee Administration (CDTFA) audit can be challenging and often intimidating, especially if you lack the staff or expertise to handle it. On top of that, with its budget shortfalls, the State has become more aggressive in pursuing more revenue through its new programs. The need for expert help has become more indispensable. CA Tax Associates is ready to assist you so that the audit process would be as smooth as possible for you and your business.

Advantages of the CTA team:

CTA is equipped to handle all aspects of the audit from beginning to end.

CTA staff has more experience than most CDTFA auditors. When you bring us on board, it is highly likely that the audit management team will have more experience than the CDTFA auditor.

One size does not fit all. CTA will evaluate the best strategy for your case to eliminate or minimize your liability.

Because of our thorough knowledge of the CDTFA internal policies and procedures, we know when it is strategically beneficial to you to involve the auditor’s supervisor or principal auditor to resolve pending issues.

During the audit process, it is very unlikely the auditor will be looking for credits or offsets to his audit findings. We ensure any credits or offsets are not overlooked.

Although we can offer our expertise at any stage/phase of the audit process, we recommend that you engage us before the audit examination begins in order to evaluate the propriety of the audit procedures to be applied.

Did you know?

With the budget shortfalls of the last few years, the State has become more aggressive in pursuing additional revenue, including the implemented new programs to increase the State’s income. New units have been established to administer these new programs to close the “tax gap”. The “tax gap” is the amount of tax the State believes is not being reported because of errors and intentional underreporting. Have you heard of SCOP? If not, you will. More and more businesses are being investigated and audited as a result of these new programs. CTA has thorough knowledge and experience with these new programs and will be able to effectively guide you through the process.

In the last few years, the CDTFA has experienced a loss of a large percent of their most experienced auditors, leaving the bulk of the audits in the hands of less experienced auditors, increasing the potential for implementation of incorrect techniques and procedures.

The CDTFA has significantly increased the application of statistical sampling techniques in their audits. In the past, statistical sampling techniques were mostly used to audit large entities. Today, auditors have to justify not using these techniques in all their audits. There are many different sampling techniques. Application of the proper sampling techniques is crucial to obtaining an accurate result. CTA has experience with all statistical sampling techniques and will make sure they are appropriate for your circumstance. CTA will ensure the results are properly evaluated and applied.

Another development of the CDTFA audit examination is the utilization of the Board’s Computer Audit Specialists (CAS). Auditors are now encouraged whenever possible to make use of a CAS to download electronically records from the business for the audit examination. CAS downloads your business data, sorts it, and stratifies it for the auditor’s examination. Proper stratification and application of the statistical sampling techniques is crucial for the integrity of the audit and the results. CTA has thorough knowledge of the process used by the CAS and the techniques applied.

Identifying and securing exemptions you are entitled to!

Most companies do not have the time or personnel to identify possible credits and refunds for which they may be entitled. Let us do it for you! CA Tax Associates excel in identifying and securing California sales and use tax credits and refunds.

The CTA team will identify and assemble all the necessary documentation to support your claim and file all the necessary paperwork.

Most claims for refund cases can be handled on a contingency basis. We only get paid when you get your refund!

Preserving Your Rights

With a thorough knowledge of the appeals process, CA Tax Associates will evaluate the most effective strategy that will yield the best results for you (or your client).

The challenges of a California Department of Tax and Fee Administration (CDTFA) assessment through the appeal process include a number of steps and time limits prescribed by the CDTFA. CTA will ensure your rights are preserved by filing all necessary documentation within the prescribed deadlines.

Effective Solutions to Complex Issues

Sometimes wisdom dictates that your interest is best served by offering a settlement. CTA’s experienced staff will handle all aspects of negotiating a settlement so that the results are best for you and your business.

Resolutions

There are some instances where the California Department of Tax and Fee Administration (CDTFA) findings are no longer in dispute. However, you may find that you are unable to pay the full liability. What you may not know is that you may qualify for an Offer in Compromise. CTA staff can evaluate your position to see if your circumstances qualify you as a candidate for the Offer In Compromise (OIC). If an OIC is your best approach, we will assist you in putting together all documentation required to handle the process that will resolve your liability.

Keeping You Up-to-Date on Tax Laws

The California Sales and Use Tax Laws are ever changing. It can be very complex and confusing as it applies to your business. Our team is informed with the latest information on how sales and use tax will affect your business.

The Internet has allowed more and more out-of-state businesses to sell their products in California. Because of this, the California Department of Tax and Fee Administration (CDTFA) has stepped up their efforts to identify out-of-state companies they consider engaged in business within California, making them liable for collecting and paying California tax. Often these out-of-state businesses do not realize you can be considered “engaged in business” within California without a physical location in the state.

During their normal audit process, the CDTFA auditor is required to identify and report to a special unit within the Department purchases made without tax from out-of-state businesses. The CDTFA will investigate these companies for potential nexus in California. The CDTFA can issue an assessment going back eight years to companies determined to have nexus during this period.

If you are an out-of-state business making sales in California, CTA can assist you in evaluating your compliance with California Law. If you have already been contacted by the CDTFA with the possibility that you will need to register with them, contact us immediately!

A well trained staff means a more efficient staff, and that translates to cost savings. CTA can provide training to your staff in all areas of sales and use tax. We offer invaluable know-how on best practices as it relates to sales and use tax to help ensure your business is on a successful track in its relationship with the State.

We offer our expertise in evaluating your internal policies and procedures concerning all matters pertaining to sales and use tax. We can assist you in implementing best practice policies and procedures to audit proof your business and ensure a good relationship with the California Department of Tax and Fee Administration.

CTA specializes in lending its expertise to accounting firms who need assistance with sales and use tax issues facing their clients.  We do not compete with accounting firms. Our focus is on sales and use tax. When we partner with you, you are giving your clients the experts at the forefront of the field.  Call us to let us know how we can help you and your clients!