BOE Audit Options

On: April 27, 2018

I just concluded a BOE audit. I now have a 60k bill to the state. What are my options for repayment? 1. 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. 2. You can enter into an installment agreement. The BOE allows an installment agreement to go out no further than 18 months, as the sales taxes owed are considered to have been held in trust by the taxpayer on behalf of the taxpaying citizens of the state of California. They are most likely to insist on 6 months. Any financial information taken by the BOE for the purpose of collection of unpaid tax should be for the business, but it will be assessed against the individual in charge of sales and use tax for the business if the bill remains unpaid. 3. You can consider closing the business. This is a real consideration. If the business is continuing to accrue unpaid sales and use tax on a continuing basis, the BOE can consider enforcement/closure action in an effort to close the business for you and would then hold you, as an individual, liable. Closing the business is also necessary for the BOE to consider any form of Offer in Compromise. The business closes, the unpaid taxed are assessed against the individual and, if it is merited, the BOE can consider settling the unpaid sales and use taxes for an amount less than that which is owed. The BOE takes its task very seriously. The sales and use tax is considered being held in trust for the taxpayer. These finds are not considered your money and your failure to pay this tax is considered akin to theft.