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Sales and Use Tax Problems

Sales and Use Tax Problems

Sales and Use Tax audits in California are conducted by the California Department of Tax and Fee Administration (CDTFA). Businesses in certain industries are required to withhold and pay over sales and use tax to the State. Failure to do so can lead to serious consequences in the event of a tax audit. After a tax audit, if additional tax has been assessed, the tax is then transferred to the tax collection department. If a taxpayer is unable to pay a tax in full, they can seek out collection alternatives to settle the tax.