Frequently Asked Questions

Can the FTB Sue Me?

On: June 29, 2018

Anyone can sue anyone, but the FTB (the California Franchise Tax Board) does not need to in order to collect the amounts due them for sales and use tax and the other tax collections it administers. The FTB has the following collection powers: Liens Levies Wage garnishments Property seizures Increasing security deposits The FTB may […]

What Type of Tax Does the EDD Collect?

On: June 22, 2018

California has four state payroll taxes which are administered by the Employment Development Department (EDD). Unemployment Insurance (UI) and Employment Training Tax (ETT), which are employer contributions. State Disability Insurance (SDI) and Personal Income Tax (PIT), which are withheld from employees’ wages. Wages are generally subject to all four payroll taxes. However, some types of […]

State Sales Tax – New Supreme Court Ruling

On:

This just in! The Supreme Court has made an official ruling as of Thursday, June 21, 2018, that states can now compel retailers to collect sales tax from their customers even if the retailer does not have a physical presence within the state. This decision can have a profound impact on retailers, especially those who […]

How Much Penalties Can the EDD Charge Me?

On: June 15, 2018

It depends on what happened to incur the penalty in question: Penalty Name: Benefit Charge Assessment Penalty Penalty Reason: Failure by a reimbursable employer to pay the cost of Unemployment Insurance (UI) benefits paid to an individual within 30 days from the date of the notice. Penalty Computation/Rate: 10% of the unpaid contributions plus interest. […]

Can the EDD Place You Under Arrest or in Jail?

On: June 8, 2018

The short answer is yes. The following is from the EDD web site: The Employment Development Department (EDD) administers the Unemployment Insurance (UI), Disability Insurance (DI), the Paid Family Leave (PFL) program, and Employment Tax programs for the State of California. To support these programs and the payment of benefits, the EDD is responsible for […]

What is the BOE?

On: June 1, 2018

The BOE stands for the Bureau of Equalization. It is the California state government agency entrusted to monitor, collect and enforce sales and use tax, certain forms of property tax, alcoholic beverage tax and insurance tax.

What Type of Tax Does the BOE Collect?

On: May 25, 2018

Sales and Use Tax: California’s sales tax generally applies to the sale of merchandise, including vehicles, in the state. California’s use tax applies to the use, storage, or other consumption of those same kinds of items in the state. Generally, if sales tax would apply when you buy physical merchandise in California, use tax applies […]

I Owe Sales Tax to the BOE. What Are My Options?

On: May 18, 2018

You can pay the BOE (California State Board of Equalization, California state tax agency in charge of sales and use tax) in full. This is a real option to consider as interest continues to accrue while the California sales and use tax bill remains unpaid.   You can enter into an installment agreement. The BOE […]

How Much in Penalties Can the BOE Charge Me?

On: May 11, 2018

The reasons for interest and penalty charges vary. For example, you may be assessed penalty and interest charges if you: File a late return and/or make a late payment A 10 percent penalty if your tax payment is late If you file a late return and make a late payment, your penalty will not exceed […]

Can the BOE Sue Me?

On: May 4, 2018

Anyone can sue anyone, but the BOE (the Board of Equalization, now known as the Department of Tax and Fee Administration) does not need to in order to collect the amounts due them for sales and use tax and the other tax collections it administers. The BOE has the following collection powers: Liens Levies Wage […]