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 garnishments
• Property seizures
• Increasing security deposits
• The BOE may issue a “till-tap” or “keeper” warrant. If you have an active business and have not paid sales tax that is due and final, the BOE may serve a civil warrant to the California Highway Patrol or the local sheriff to enter your business and collect the gross receipts or contents of the cash register(s). They can also leave a person on the premises for up to 10 days to collect income.
• The BOE may revoke (suspend) your seller’s permit
• Your alcoholic beverage license may be suspended or a transfer restriction placed on the license
• The BOE may cancel your DMV dealer license
• The BOE may post your information on our website
• The BOE may post your name on the Top 500 Sales and Use Tax Delinquencies list on our website making your amount due a matter of public record if your amount due is more than one hundred thousand dollars ($100,000). If your name is posted to the Top 500 Sales and Use Tax Delinquencies list, the law requires a state governmental licensing agency which issues professional or occupational licenses (including driver licenses) certificates, registrations, or permits, to revoke, suspend, or refuse to issue a license.
• The BOE may intercept your state refund
• The BOE may assess a collection cost recovery fee

None of the above collections activities requires the BOE to go to court. They are all done on the BOE’s own authority. When the BOE does end up I court, it is usually because the taxpayer sues them. They are represented in court by their own in-house attorneys and/or the State Attorney General’s office.