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California Out-of-state Sales tax demand

Taxes and regulation

e_fastlane

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I know that there has been some discussion on the supreme court decision about out-of-state sales tax. However, I haven't seen anyone post about any state actually taking action on individual sellers yet. Well today we received an email from California. The hilarious part is that , as per usual, the government does a shit job in completing it's set out task. While we do have many large businesses with technical nexus in CA (by their definition), the business they emailed has actually been out of business for years now and hasn't sold anything in years. HA. That's why they never received a response back, it doesn't exist at that address (or anywhere) anymore.

Here is the email.

Dear seller,


The California Department of Tax and Fee Administration (CDTFA) has received information that you have inventory that is stored in warehouses or fulfillment centers in California. As such, you meet the definition of a retailer engaged in business in California per Revenue and Taxation Code section 6203. You are therefore required to register with the CDTFA, file sales and use tax returns, and pay tax on sales made to consumers in California.


Please see the attached letter which was mailed to your attention effective December 13, 2018. We have not received a response to date. We are requesting that you review the attached letter and either respond in writing or by completing the registration confirmation by following the directions on the letter. You may also email your registration number by replying to this email.


Please respond as soon as possible. You may contact the CDTFA Out-of-State Office directly at (916) 227-6600, or respond to this email at CANexus@cdtfa.ca.gov.

Anyone else get something like this or the actual letter they sent?
 
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e_fastlane

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Oh, and here is what the letter itself says:
Dear Seller:

The California Department of Tax and Fee Administration (CDTFA) has received information that you have inventory that is stored in warehouses or fulfillment centers in California. As such, you meet the definition of a retailer engaged in business in California (Revenue and Taxation Code section 6203) and you are, therefore, required to register with the CDTFA, file sales and use tax returns, and pay tax on sales made to consumers in California.

The CDTFA prides itself on the fair and uniform treatment of all taxpayers, and it is our intent to treat all taxpayers who voluntarily make attempts to correct past reporting errors with the utmost respect and fairness. The CDTFA may, in certain circumstances, relieve penalties imposed in cases where the taxpayer comes forward, registers, and remits the past due taxes and interest.

Please register by January 15, 2019. To register, visit www.cdtfa.ca.gov and select Register, then select Register a New Business Activity or Location. The start date on your account should reflect the date you began engaging in business in California. You will receive a permit number when your online registration is complete. After registering, please complete the Registration Confirmation section below and return it in the enclosed self-addressed envelope. You may also complete this form online by visiting CDTFA online services and select Respond to Letter/Inquiry under the Limited Access Functions, and use the Letter ID and Letter Date listed above. If you need assistance with registering or have any additional questions, please contact our Out-of-State Office at 1-916-227-6600 or email us at OSReg@cdtfa.ca.gov.
 

MJ DeMarco

I followed the science; all I found was money.
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Sorry to hear that the California Governmental Gestapo has you on their radar.

Not that it helps, but you have my condolences.
 

e_fastlane

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Anyone else get something like this or have any experience with this?
 

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