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Board of Equalization Audit

Board of Equalization Audit

There’s nothing quite as worrisome as receiving a notification that your business has been selected for a Board of Equalization audit. You probably have a long list of questions. In particular, you probably want to know what you need to do first. We can tell you that we’ve seen plenty of clients try to handle this situation on their own, only to come to us for help. The best first step is to reach out for help before your Board of Equalization audit becomes more difficult and challenging that it needs to be.

What Do I Need to Know About a Board of Equalization Audit?

Get into the mindset of being prepared and organized. At every step of the way, you should consider all of the guidelines that have been set forth. For instance, if you are asked to furnish documentation supporting a specific item involved in the audit, then you want to provide everything possible to support the claim without question.

You should be sure to have your resale certificate. You will need to provide it, and if you are unable to provide your resale certificate, then you could be in for bad news. In fact, your auditor could deem that you won’t receive any relief from your tax liability. This means that you could be held liable for all of your tax debt. In this case, the balance is due to the IRS immediately, and if it’s not paid on-time, then you could face a plethora of consequences ranging from penalties to liens.  

If you do not have your resale certificate on hand, there are ways to get through the audit, but you will likely have to complete and return a large volume of forms that ask for very specific information. These can be quite tedious to work through. Your auditor will give you a deadline to return all of these papers as part of your audit.


How Hard is the XYZ Letter Process?

You’re given a total of four weeks to complete this process, and while this might seem more than sufficient, businesses often see how quickly the time goes by when you’re trying to carefully follow the auditor’s guidelines. During this time, you will be completing paperwork sent by your auditor and returning it to the Board of Equalization or California Department of Tax and Fee Administration by a deadline prescribed. If the deadline isn’t met, the consequences include the Board of Equalization assigning your tax liability. Sales are often considered as sales for resale when a customer is no longer in business and can’t be reached. As you can see, the implications of this can be detrimental.


How to Get Help

Our team is here to help with your Board of Equalization audit. We can help ensure that your paperwork is completed correctly and filed on time, and our assistance can help deliver the best results possible from your Board of Equalization audit! Contact us today for more information.

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